Entrepreneurship and Economic Growth
Entrepreneurship is the primary engine of economic growth and prosperity around the world. Entrepreneurs guarantee that there is a real value addition by establishing and creating new jobs, as well as producing creative services and goods (McMillan & Christopher, 2002). Furthermore, they serve as the primary determinants of policymakers' ability to address social and economic issues that people face in society. As a result, entrepreneurship increases social capital accumulation, economic growth, greater stability, and job production.
Types of Entrepreneurship
Entrepreneurship is described by occupational, physiological, and new enterprise creation factors (Lippmann & Aldrich, 2016). Occupational notion defines entrepreneurship as the managing and owning a business enterprise where the practitioners are referred to as the firm owners, self-employed, or entrepreneurs. Behavioral notion refers to entrepreneurs engaging in seizing and recognizing an opportunity in the economic environment, taking a risk, and using innovative practices to the untapped markets (Jain, Jain & Jain, 2017). Thus, the behavioral notion considers the entrepreneurs as the entrepreneurs where there is encouragement of employees to embrace the innovative entrepreneurial acts. New venture creation considers entrepreneurship as the sole act of establishing organizations. Therefore, new business enterprises are created that assist in value addition.
The Challenges of Starting an Entrepreneurship Business
In all market economies, the small and medium-sized enterprises seem not to be in existence. As such, the entrepreneurs responding by establishing enterprises, which are present in different transition countries (McMillan & Christopher, 2002). The process of starting the entrepreneurship business is challenging in some countries because of political issues, as well as corruption. The policies that are set in such a nation tend to deter the entrepreneurs from engaging in the business activities since they have to apply and get a business license and proof of capital. Moreover, the political environment dictates whether small business enterprises have the ability to achieve business success or not. The situation occurs since the political systems in a country play a significant role in the regulation and controlling business functions in the economic environment.
Skills and Qualities of an Entrepreneur
Establishing a business from zero is a challenging task, which most people may lack the ability to manage and ensure that their enterprises have the potential of achieving the desired success (Lippmann & Aldrich, 2016). As such, an entrepreneur needs to possess specific characteristics and qualities to warrant the attainment of desired success. Such individuals should come from places and backgrounds that are different. An entrepreneurial venture has high risks (Jain, Jain & Jain, 2017). A person engaging in this business should depict a high tolerance for the risk in order to be successful. Further, such individuals should have strong networking abilities that enable them to market their products and create connections with advisors, investors, and skilled and experienced individuals in the same field of work (Navis & Ozbek, 2017).
Market Knowledge and Adaptability
Starting an enterprise also calls for a thorough comprehension of the market and being flexible and adaptable to changes; this can occur in the area of service and goods provision (Lippmann & Aldrich, 2016). An individual should also have an extreme dedication to the product and high perseverance, versatility, and persuasiveness. These help in ensuring that the entrepreneur has the chance of overcoming any form of business challenges, which could be experienced in the market environment (Jain, Jain & Jain, 2017). Moreover, one needs to be future-oriented, optimistic, and enthusiastic in order to succeed in the business environment. The entrepreneur should also possess great abilities of making decisions, which are related to the marketing of the products and functionality within the competitive environment.
Entrepreneurship and Economic Policy
Policy makers are increasingly looking at entrepreneurship as the main factor for economic growth. The growth of jobs in the European Union, United States, and Asian economies occurs because of the entrepreneurial businesses with greater aspirations of achieving success in the business environment (McMillan & Christopher, 2002). Further, developing nations currently experience a rise in the activity of entrepreneurship, which is a good strategy for the alleviation of poverty in society. Across the world, economists have realized the essence of having entrepreneurs in society. They even engage in campaigning for these enterprises to achieve success and remain funded by the government. Such is because entrepreneurship supports the economy of a country to a great extent.
Factors Influencing Entrepreneurship
The growth in entrepreneurship is because of the stability of the country characteristics, but there are continuous changes in legal, social, political, and cultural norms that either constrain or enable entrepreneurial activity (McMillan & Christopher, 2002). Economic freedom depicts that individuals can engage in economic activities, without having any restrictions or being subjected to subsidies in their work. The "rule of the game" in economic freedom is the incentives to engage in innovation, open markets, rule of the law, and property rights.
Small Business Success and Constraints
The success of small business firms depends on regulations, taxation, competition, and sales (Lippmann & Aldrich, 2016). Further, cultural institutions, regulatory measures on businesses, and the political environment dictate how the small firms are able to venture into economic activities and become successful. These tend to alter the processes, motives, and outcomes for business initiation, opportunities, and growth in order to inform entrepreneurship policy, teaching, and research (Jain, Jain & Jain, 2017). The rules in this business environment tend to be normative, regulative, or cognitive. The normative rules focus on establishing whether the behavior adopted by entrepreneurs is ethically or morally justified. The cognitive rules explore the thoughts of entrepreneurs in relation to resources, opportunities, judgments, and uncertainties. The regulative focuses on indicating the entrepreneurial actions, which are permitted legally.
The Role of the Entrepreneur
The new classical theory of organizations indicates that the activity of the entrepreneurial is analogous to a static endowment factor since there is a limit on the size of the company. The passive and static role that the entrepreneur plays offers emphasis on perfectionism of information that trivializes decision making and management present in the perfect markets where there is coordination of what is needed in the journey of the entrepreneur (Sinyolo, Mudhara & Wale, 2017). The neo-classical and classical traditions have the concerns of establishing equilibrium or natural prices. The French classical tradition depicts that profits are not equal to incomes obtained from the capital, and these are enjoyed by the entrepreneur.
Innovation and Opportunity Recognition
An ideal entrepreneur should embrace the skill of being innovative. Such a person should engage in a venture backed by creative and relevant knowledge within the achievable limits. Technical knowhow and past experience are vital in enhancing enthusiasm and confidence while kick-starting the entrepreneurship business entrepreneur (Sinyolo, Mudhara & Wale, 2017). Thus, entrepreneurship depicts the ability of building and creating things from nothing through determination and hard work. The individual engages in initiating, building, achieving, and establishing an organization or enterprise instead of analyzing, watching, or describing one (Navis & Ozbek, 2017). Such should be the knack of identifying an opportunity where individuals see confusion, contradiction, and chaos. Therefore, the entrepreneur focuses on the willingness to prosper in areas where there are both financial and personal risks and do everything to win the business.
Technology and Entrepreneurship
Technology plays a significant role in influencing the process of entrepreneurial growth and development in society (Ezuma & Ismail, 2017). As such, there is a global movement towards the concepts and idealization of entrepreneurship among individuals and communities of different cultural backgrounds since social networking and the Internet facilitate sharing of ideas. Hence, the global community is now coming together and engaging in the process of solving local problems while having an effective collaboration online.
Financial Constraints and Social Impact
However, the ambitions of entrepreneurs are constrained by the lack of finances to support them in their business endeavors. These individuals have troubles in establishing contacts with traditional investors and getting government funding, which would help them in ensuring that they have a chance of succeeding in life (Welter, Baker, Audretsch & Gartner, 2017). The majority of the investors focus on the viability of a business. Hence, when a business does not have any promises because of its small magnitude, it becomes impossible for investors to engage in the investment strategies (Navis & Ozbek, 2017). Moreover, entrepreneurs often engage in putting the social problems and benefits at the top of the business plans, as compared to the monetary return.
Culture, Ethnicity, and Entrepreneurship
Globally, the economic state of a country prides itself on the ability of the entrepreneurs to envision and generate ideas, which are focused on business growth and development (Manso, 2016). These individuals have the potential for identifying a social or market need and strategize on ways, which will benefit them economically while solving the problem. Further, they engage in social embedding and networking to protect their businesses and ensure that they are on a good track to achieve success (Ezuma & Ismail, 2017). However, they rely on the environmental awareness as a key strategy of creating the conducive factors, which enhance the exploitation of opportunities and garnering the vital material resources to maximize on benefiting from their ideas. Furthermore, entrepreneurs need to have a strong power to convince others so that they can value the opportunity, which is presented to them and support them in their endeavors.
Gender and Entrepreneurship
Entrepreneurship may not achieve success if the behavior of self-awareness, self-belief, and trust in judgment does not prevail in the entrepreneur. Such an individual should always have strong ability to take responsibilities and manage risks, which could be present in the small business (Welter, Baker, Audretsch & Gartner, 2017). Hence, it becomes easier for a person to cope and endure the challenges of business functionality that include persistence, motivation, and energy. Great leadership and managerial skills are also essential for the enterprise to achieve its success (Manso, 2016). The entrepreneurs should depict high abilities to manage others, make decisions, develop the ideal to a commercial activity, and overcome the constraints, which could impede the development and growth of the business enterprise.
The Role of Education in Entrepreneurship
In the United Kingdom, the foreign-born population exhibits a high probability of engaging in entrepreneurship (Manso, 2016). The migrants are depicted as the key risk-takers who often engage in entrepreneurship natives. Such makes an indication that immigrants tend to have high entrepreneurship skills, but that could not be the case. The mix of cultures in a country facilitates having unique training, ideas, and skills, which stimulate entrepreneurial thinking. For example, in the United States, there is a record of high entrepreneurial activities because of the presence of ethnic minorities (Ezuma & Ismail, 2017). Hence, ethnicity and culture play a significant role in ensuring that entrepreneurship develops successfully in a given nation. Therefore, governments should embark on the development of skills that enhance breaking of the barriers, which could limit the ethnic minorities from achieving their business success.
Gender and Entrepreneurial Strategies
The growth of the business calls for the best change-related strategies. Gender plays a significant role since men and women are able to have different perspectives and opinions on the direction at which the business should take on its course entrepreneur (Sinyolo, Mudhara & Wale, 2017). Business ventures depict differences on sales, survival, and growth as led by women and men in society. Thus, there is a need to focus on the study practices where women and men entrepreneurs embrace different development and competitive advantage strategies, which ensure that entrepreneurship is a success.
Challenges Faced by Women Entrepreneurs
For women, they have strong skills in entrepreneurship related to interpersonal abilities. However, women need great support on financial skills (Welter, Baker, Audretsch & Gartner, 2017). Further, women tend to face strong constraints and limitations on how to access the capital for their entrepreneurial enterprises because of their background and male counterparts' experience. Network and resource-based perspectives constrain the development of small businesses. In peripheral regions, entrepreneurship faces a significant challenge, which is linked to the limitation of the resources to conduct the business successfully (Manso, 2016).
Factors Influencing Entrepreneurship Development
The development of entrepreneurship skills is associated with several factors, which include the demographic traits of the entrepreneur, the business, educational level, past experience, and genetics on handling complex situations in society (Ezuma & Ismail, 2017). Further, these skills can be learned when a person is exposed to the environment, which offers information and knowledge of how to become a successful entrepreneur in society. Nevertheless, this depends on the part of an individual in terms of the ability to comprehend the enterprise skills, which include inner control, visionary leadership, persistence, risk-taking, being change-oriented, and innovativeness (Manso, 2016). Therefore, when a person learns about these skills and focuses on business activities, which are aimed at solving the pertinent problem, he or she becomes successful in the field of work.
The Role of Education and Government Support
Education is the strongest weapon, which the society should focus on utilizing in order to ensure that entrepreneurship grows and develops significantly. The young people should be integrated into a system where they can see the potential problems in the world and focus on solving these problems (Welter, Baker, Audretsch & Gartner, 2017). Such will occur when education provides insights to the youth on how to envision the world and develop strategies, which are aimed at solving both the economic and social problems. As technological advancement is occurring in society, the focus should be to ensure that technology is one of the tools utilized in supporting entrepreneurship development in a country.The structure of the education curriculum in colleges and universities should focus on indicating to the scholars the essence of entrepreneurship (Ezuma & Ismail, 2017). Such should involve the illustration of the different skills and capabilities of becoming successful in this field. Therefore, the aim is to depict how entrepreneurship should be envisioned among the learning individuals. The expected outcome is that the students will embrace these skills and focus on solving the social and economic problems. Furthermore, education should also aim at giving examples of successful entrepreneurs in society and indicate to students what these individuals did in order to achieve that status entrepreneur (Sinyolo, Mudhara & Wale, 2017). Hence, the learners will be motivated to engage in the studies that focus on solving their inherent problems at all times.The government should play a significant role in enhancing the growth of entrepreneurship in society. As such, resources should be deployed, which will ensure that entrepreneurs have a chance of venturing into business activities, which have economic gain to the country, as well as themselves (Sinyolo, Mudhara & Wale, 2017). Further, the government should participate in enhancing the accessibility of funds for the entrepreneurs. These funds create a chance for the individuals to gain capital, which is essential in starting and running the enterprises. Furthermore, the entrepreneurs exist as solution thinkers, which is a thing not experienced in the government. Thus, it is the role of the federal and state governments to create room for the existence of these individuals in society.Moreover, the government should engage in establishing centers where there can be training and recruitment of entrepreneurs (Welter, Baker, Audretsch & Gartner, 2017). In these locations, professionals and graduates from colleges will meet and share insightful knowledge, skills, and information, which lead them to becoming excellent entrepreneurs. Such centers should also act as the locations for training and developing individuals to be successful in engaging entrepreneurship. Hence, information should be shared on challenges and how they can be avoided by individuals to sustain their businesses in this economic environment. Furthermore, the centers should act as areas for fostering leadership skills among entrepreneurs to ensure that they have what it takes to run the businesses successfully.
Conclusion
In conclusion, society engages in the promotion of entrepreneurship for economic and social benefits that include job creation, development of new services and products, and innovation that increase the choices of consumers in the market. Further, entrepreneurship is of great benefit to a group or individual that offers significant space for autonomy for problem-solving and creativity, which helps in enhancing the quality of life. The education sector should ensure that its curriculum focuses on fostering entrepreneurship skills among the students. Such will aid in giving learners a chance to understand how they can engage in economic activities to solve social problems.The entrepreneur should possess key skills and abilities, which assist in ensuring active accomplishment of tasks. These include inner control, being change-oriented, engaging in risk-taking, embracing the concept of visionary leadership, innovativeness, and persistence. These facilitate making a person a successful individual in the field of entrepreneurship. Furthermore, gender, culture, and ethnicity are significant factors, which determine the success and failure of entrepreneurship in society. Government and non-governmental agencies should embark on allocating adequate resources, which ensures that there is a conducive environment where the entrepreneurs can conduct and run their businesses successfully. Such is essential since entrepreneurship contributes significantly to solving social and economic problems in a country.
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