Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
importance of entrepreneurship in the economic development of a country
importance of entrepreneurship in the economic development of a country
Don’t take our word for it - see why 10 million students trust us with their essay needs.
A greater level of entrepreneurial business opportunities will exist in a poor, developing economy, rather than in a rich, developed economy because the needs and opportunities are more widespread, they have a different and greater cultural awareness, and have the opportunity to assess industries that have a high level of market risk before entering them. Although there are many factors that can affect entrepreneurship in these countries and prevent entrepreneurship form existing like a lack of finance, difficulty recruiting, a lack of innovation, high barriers to entry and issues with their government.
There are 5 factors that are necessary for entrepreneurship to exist these are an individual - the entrepreneur themselves, an opportunity, adequate resources, an organisation, and a favourable environment. It can be difficult to have all these five factors in a developing country compared to a developed country due to many issues but if these issues can be overcome there are many advantages to starting an entrepreneurial venture in a developing country.
Although developing countries are behind compared to developed countries in the business sector, entrepreneurship is a very important part of their economy for stimulating growth, competitiveness, innovation and also alleviating poverty for the countries. Although some developing countries try to restrain entrepreneurship, many others allow and encourage entrepreneurship and the start of small businesses, despite their great odds at being successful. (Pennisi, 2012) There are many unique features that affect entrepreneurship within developing countries.
There are many issues that need to be overcome by entrepreneurs in developing countries before they can start on their entre...
... middle of paper ...
...mising future.(Kempner, 2011)
Entrepreneurial ventures and small businesses in developing countries are extremely beneficial and are essential because they generate income and jobs, and they invest their business into the community that it operates in. Through this they also generate goods and services for the locals in these communities and will often tackle environmental and social issues of the community as well. When led correctly these businesses should grow and create more jobs, more services and more wealth to the community. (Naude et al. 2011)
Overall there are many issues that entrepreneurs have to overcome in order to start-up a business in a developing country but if they are willing and able to get past them, there is a greater level of entrepreneurial business opportunities that exist in a poor, developing country rather than a rich developed country.
Often excluded from access to organized financial services, BOP entrepreneurs face considerable barriers when attempting to realize their economic potential. BOP entrepreneurs are predominantly situated in developing nations, where local governments often struggle to create sustainable business incentives. In response to this lack of support, avenues such as microcredit are becoming increasingly popular, leading to over four million ventures launching last year through microcredit (Valente and Crane, 2010). The BOP’s consumer influence is also growing; valued at $5 trillion in purchasing power parity terms, it has become a desirable object for multinational enterprises (MNEs) wanting to cater to poorer citizens (Jha,
But this still does not give them any satisfaction. And most the time, during holiday because of poverty, student have to sells in the street in order to be be able to help their parents to pay for school tuitions, and sometimes most of them have to create a small business to be able to gain money to help their family, brother and sister schools. The government introduced entrepreneurship programs to promote and enhance skills acquisition, the spirit of creativity, self-reliance and self-independence. In other to examined the determinants of entrepreneurial intention amongst university students in Cameroon, the motivations and obstacles, to entrepreneurship among university students in Cameroon, and whether there is any significant difference between entrepreneurial intention and selected demographic variables (gender, entrepreneurship education, and family background). This could be an example to be carried out by other sub-Saharan countries, to reduce the rate of unemployment. The training and support of more qualified teachers is also something not to be disregarded in the improvement of youth unemployment in sub-Saharan Africa. The capacity of having good and well-
The SMEs sector’s growth of output trend to decrease in recent years since liberalization and adjustment policies (Bari and Haque, 2008). So, it is important to specially address the policy issues regarding lending toward the SME sector. This sector is facing severe problem in financing, regulatory aspects, access to non-financial inputs. Some recent trend shows that Government policies have discriminated against small-scale enterprises (Raza and Murad, 2010). There is nothing wrong with a situation in which inexperienced entrepreneurs are unable to get institutional credit. In the same study he shows that, the relative decline of small-scale enterprises in most developing countries has been accelerated by the industrialization policies adopted in these countries (Bari and Haque, 2008). Protection, regulatory constraint, investment incentives, credit control, and the promotion of industry in the public sector have all discriminated against the small. Especially, facilities regarding small groups like female were poor and create adverse impact on the growth of SMEs (Sadaquat and Sheikh, 2010). The
Entrepreneurship incorporates unconstrained imagination and a readiness to settle on choices without strong information. The entrepreneur may be driven by a need to make something new or assemble something unmistakable. As new ventures have low achievement rates, the business person should have impressive tirelessness. Because of this, the entrepreneur may have the best risk of achievement by concentrating on a business sector corner either too little or too new to have been commanded by built up organizations.
First, the effect of innovation is important across different countries and institutional contexts. But the nature and role of the invention of new things will differ at different levels of economic development. Entrepreneurs in poor developing countries provide innovation that is important for the firm and country growth, even if they are in small steps up in nature. The invention of new things in developing countries involves the process by which firms master and put into use the design and production of products and services that are new to
In recent times in Zimbabwe the growing rate of small businesses is characterised by high rate of unemployment and the increasing rate of graduates from different institutions without correspondent employment opportunities and consequently, the society is gradually getting to the stage where the average graduate is willing and ready to go into business (Nyanga,
The challenges most of the entrepreneurs face in Bhutan are the lack of resources available in the country. The resources to manufacture products are scarce in the country and it hence hinders the productivity and capabilities of the entrepreneurs. The other challenges the entrepreneurs face are the unavailability of advanced technologies and machineries. Advanced technologies and machineries are expensive and not available in the country and hence the entrepreneurs have to settle with low end equipment and technologies which disrupts the quality of the products. Better technologies have to be imported and are far more expensive for purchase. Another challenge the entrepreneurs or the ones wanting to become entrepreneurs face are getting approval to start their business and for the banks and financial institutions to grant them loans. Lack of financial aid causes different entrepreneurs not to set their business plan into reality. Lastly most of the people are hesitant in taking up entrepreneurship due to high chances of failure to make profits, criticism from various organizations and individuals and the hard work and perseverance needed in this
In here, economic empowerment involves the power to employment, income, property, productive resources and benefits regardless of gender differences. The women entrepreneurship is one of the process where women or group of women can start to organize and run business enterprise and provide employment opportunities to others. A woman as an entrepreneur is economically more powerful than a mere- worker. The more women's actively involvement in economic activities, the more leads to the women economic development. The involvement of women in entrepreneurship will offer a chance to use their free time, rather than being employed outside their homes in some other job. The appearance of women entrepreneurs in the economy is an indicator of women's economic impartiality and their social rank. Moreover, development of entrepreneurship among women has become an important feature of the inclusive economic development of women (Siwal,
Nowadays, entrepreneurship becomes most popular career, where our government encourages our graduated student to involve in business so that unemployment will not happen in our country. Policymakers, academics, and researcher agree that entrepreneurship is a vital route to economic advancement for both developed and developing economics (Zelealem et al., 2004). Entrepreneurship has many types for example small business and others. Today small business, particularly the new ones, is the main vehicle for entrepreneurship, contributing not just to employment, social and political stability, but also to innovation and competitive power (Thurik & Wennekers, 2004).
Since 2014, Ashoka Switzerland cooperates with the Swiss Agency for Development and Cooperation (SDC) and organizations Hystra and New Ventures in order to identify, promote and support social entrepreneurs in Central and Latin America from access to finance to support in scaling up and replication of their ideas (Ashoka Switzerland, 2017). This program included 72 social entrepreneurs (Ashoka Switzerland, 2017). The plan of the organization is to replicate this project in Africa.
In a democratic country like India, bringing 600 million people living in rural India into the impact circumference of the growth policies and reducing differences in urban and rural India is the biggest concern. The challenge is to take the levels of growth to all sections of the society and to all parts of the country to make it growth for everyone. One of the best ways to attain inclusive growth is through developing people’s skills. While it is quite evident that inclusive growth is important for achieving the equity objective, what is, perhaps, not so obvious is, why inclusive growth is now receiving this importance to sustain the growth momentum. Majority population living in rural areas, it is often identified with the agriculture sector. However, it is the unorganized non-farm sector that is increasingly absorbing most of the labour force. This sector has huge potential for growth once there is required investment in infrastructure ensuring linkage to markets and easier access to assets and skills. Introduction of appropriate technology, skills, and easier access to credit, especially start-up capital, apart from facilitating market development, can make this segment an expanding base for self-sustaining employment and wealth generation and also foster a culture of creative and competitive industry. Entrepreneurial growth and development has to be encouraged and enhanced by having an enabling healthy competitive environment and easy availability of finance for newer projects and
Entrepreneurship is an innovative process of vision, change and creation;it needs energy and passion towards the creation and implementation of new ideas and creative solutions (David, 2013). It includes willingness to take risk in terms of career, time and the ability to have an effective team force, having a business plan and the vision to recognize opportunity where others see confusion and chaos (David, 2013).Dollinger (2003) defines entrepreneurship in agriculture as the creation of innovative economic organization for the purpose of growth or gain under conditions of risk and uncertainty in agriculture. Entrepreneurship in agriculture is seen as one of the most important solutions to poverty, unemployment and low economic
Entrepreneurship is an important aspect of social, economic and community life. It can be viewed as a critical factor to economic growth as well as a way of addressing unemployment (Nolan, 2003).Entrepreneurs are people who are persistently focused on identifying opportunities, they seek to create something worthwhile while taking into account foreseeable risk and rewards associated with the efforts (Nolan, 2003). Furthermore, entrepreneurs are frequently understood to be individuals who discover market needs and establish new business to meet those identified opportunities. The following assignment will firstly discuss the types of entrepreneurship, secondly it will discuss the reasons people become entrepreneurs, and thirdly it will discuss the importance of entrepreneurship.
It can be concluded that entrepreneurship cannot exist in the absence of innovation. Innovative entrepreneurship is the key to a successful business leading to economic development. Entrepreneurs are very prominent figures of society and therefore their actions and decisions have a significant impact on the welfare of stakeholder groups. Sustainability plays a vital role in this relationship in that it provides a solid foundation upon which a business can expand with more temerity and assuredness.
Within every major economy, a great factor in providing the energy of the core of the nations economy is the small and medium enterprises. These cluster of firms are what provide new economic activity, new innovative products and services, along with growing employment and in general a crucial system in ensuring the economy is at a stable growth level. With a majority of this activity stemming from family controlled or managed businesses, the focus on developing a global and long term perspective for these firms are ever growing in importance because of the global perspective entrepreneurship has started to take.