Entrepreneurship notes
Ensuring balanced regional development Entrepreneurship leads to the creation of small businesses that can be easily established in rural and semi-urban areas. This promotes balance between different regions of a country. The development of trade and commerce in these areas brings benefits to the public, Traffic, health, education, entertainment and so on. Promotes business growth Marketing enables businesses to find new and better products. Production, new business etc. This leads to better performance and job growth. Think that small companies have a high need and ability to innovate.
Leads to better living standards The market can produce better quality products at lower production costs This improves living conditions by giving consumers the opportunity to purchase quality products at a lower cost. Self-sufficiency Businesses provide domestic production of legal goods. This reduces the country’s dependence on foreign products. The Risks of Doing Business in Developing Countries 1. Insufficient funds. Many entrepreneurs may not have enough capital to build or expand their business.
In addition, cannot get a loan because they do not have the resources to borrow. 2 one. Lack of experience/documentation on business value. Some 4,444 entrepreneurs have little or no work experience. In this case, even if they have money, they cannot invest in a business they do not know. 3. Administrative and business restrictions. Many have limited ability to identify profitable business opportunities and uncover the resources needed to start a business. Even when starting a business, people are limited to only skills to manage their profits. 4. Underdeveloped infrastructure.
Connectivity is often poor, and in some areas electricity is unreliable and other infrastructure issues. This makes it expensive to do business. Importance of entrepreneurship for job creation in developing countries Entrepreneurship creates jobs for entrepreneurs and is one of direct and indirect jobs in a country. In other words, entrepreneurship reduces unemployment by in countries that lead economic development. Thus, jobs can be created in a country by promoting small businesses. Increase capital formation Investors distribute nonprofit capital. The financing may be a combination of the entrepreneur’s own funds and loans.
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