Definition of Entrepreneurship
Question:
Write about the Entrepreneurship and Importance of Growing Firms.
Entrepreneurship is the process of executing the innovative ideas for the betterment of the society and economy. It is considered as the key for generating wealth, employment and economic growth; a tool for decreasing poverty and unemployment. Entrepreneurship is inspired to stimulate growth because it is substitute to unemployment and the direction to abscond the poverty. The growth of the firms depends on entrepreneur as they make the innovative strategy and policy to achieve the objectives. Entrepreneurial firms are also very helpful in regional development by providing direct or indirect support in lifting up the regional economy. Entrepreneurship is very crucial to any economy. The objectives of this study are to discuss about the role of entrepreneurship in the economic development through various ways and the entrepreneurial firm’s potential for growth, relation between entrepreneurship and management and major objective is that entrepreneurship plays an important role in the growth of economy and living standard of the country (Toma and Marinescu, 2014). Entrepreneurship majorly supports the growth of economy by decreasing the unemployment in the country by providing jobs.
Entrepreneurship is the act of creating a business or businesses with the motive of generating profit. The meaning of entrepreneurship is very complicated. Entrepreneurship involves person who take actions for transformation of the world by solving huge problems that many struggle with each day, or raise something comprehensive that advances society. Entrepreneurship is the process whereby an individual assess, determine and exploits a business opportunity (Volery and Mazzarol, 2015). An entrepreneur is the one who take the idea and execute on it instead of just had an idea stuck in the mind. Entrepreneurship is about execution of ideas. Entrepreneurs have exceptional ability and extraordinary powers, their talents include being intelligent, innovative and ambitious. They repeatedly take action to make sure progress of the world, they observes issues in the business environment and instantly focuses on thinking about the solution (Drucker, 2014). They want to provide solutions to the society for day to day problems to improve and take forward their society. Whether they create jobs for decreasing the unemployment or by creating new products or also by providing innovative services, they execute their innovative ideas for the world’s progress. Entrepreneurs are very important in society as they put efforts on their own to improve society. Entrepreneurs are the ones who create jobs (Naude, 2014). Their motive to continue their business growth is for creating new jobs, so that it could be helpful in decreasing unemployment because if the business is growing then they would require more employees. Entrepreneurs create changes in the society as they see opportunity everywhere and this talent to see many options in different situations is very censorious. They usually take risks but that does not mean to be spontaneous with risks of business, so they execute their ideas with proper planning, strategy, analysing and observing the advantages and disadvantages. An effective entrepreneur enhances the capacity and potential of decision makers to make most appropriate decision for business. A business can adopt the entrepreneurship by looking at some major factors, like; vision, mission and strategy of the business, culture and structure of the organization, knowledge and creative management, technology management, effective and ethical leadership, managing the risks and core competencies (Decker, et al., 2014). They are generally faster to approach the market with entire new technologies; this is very helpful in taking society forward towards growth.
Importance of Entrepreneurship in Economic Development
Entrepreneurs are helpful in balancing regional development as when they establish their new business in backward and less developed area; then they are lifting regional economies in both direct and indirect manner because when the businesses and industries grow in these areas then this would instigate infrastructure enhancement, such as better roads and rail links, airports, stable electricity power and water supply, schools, hospitals, shopping malls and other public and private services that would not otherwise be available. Innovative mind set and personality is the vital role of an entrepreneur, innovation is the process of executing the creative ideas and experimentation by launching new products, technologies and services in a different manner. It represents the firm’s likelihood to attract and hold up new ideas through creativity and experimentation that would help in developing new products, services and technologies. Entrepreneurs are supposed to work actively by implementing their creative ideas productively before their competitors (Galindo and Mendez, 2014). They are proactive in nature; they set some parameters and make sure that they are following the same for achieving goals. They know that if something needs to be done, they should begin it themselves. Entrepreneurs are highly motivated for achievements, in this a person with the motive of achievement would be an entrepreneur and when highly motivated actions are implemented then result comes that is entrepreneurship. The requirement for achievement is the feature for describing economic behaviour or people. In the hope of achievement, entrepreneurs perform things in different and new ways which are better. If someone is facing any problem in the organisation then the entrepreneur individually take the ownership of the work to find the resolution of the problem and fix it in a better way. They are very dedicated towards their plans, visions and dreams; this kind of behaviour towards the organisation is very beneficial for whole business. A positive point of view is necessary for an entrepreneur; one should not get demotivated because of past failures and disappointments. Entrepreneur is the one who is very talented in monetary management because without financial support one cannot enhance business for long term, so they take updates every month and make sure that it is going in the same way in which they had planned. Risk taking is the key feature of entrepreneurship because without taking risk or if one is scared of taking risk then they cannot implement or execute their ideas to achieve their goals (Putta, 2015). Entrepreneurs are recognised by their behaviour of risk taking as they have this inbuilt nature of taking chance but they take risk with productive and reflective strategy. They make a well-articulated strategic orientation for future and long term growth.
Entrepreneurial Firms and Potential for Growth
Entrepreneurial manager tries to initiate the creative ideas of the organisation with the effective and efficient use of resources. Entrepreneurs firstly develop the idea and business concept then raise principal for starting up the business; they hire the employees for gathering a productive and loyal team. They make innovative strategies to compete with the competitors, then they implement the strategies and analyse regularly to look if the plan is effective and productive then they it would help business in growth. Entrepreneurship is improving the quality of life in the society through balancing the development in economy and finance (Wright, 2015). Entrepreneurs think with the society’s point of view and analyse the needs and wants of the society and then plan to fulfil the need of their communities and societies; this would help an entrepreneur to contribute to the development of society. They also plan with the motive of creating financial wealth.
Growth of the organisation is major priority of the one who makes the policies. There is consequently an anxious scrutiny in achieving more knowledge about the policy which helps in the growth of firm in better conditions. Growth of the organisation is major priority of the one who makes the policies. There is consequently an anxious idea in achieving more knowledge about the policy which helps in the growth of firm in better conditions. High growth enterprise is defined as; all those enterprises which have their average annualized growth greater than twenty percentages per annum, over a three-year period. Growth is determined by the number of employees and by annual turnover (Covin and Wales, 2012). Entrepreneurship is inspired through the contingency sustained by the innovative and creative ideas and knowledge created. Entrepreneur is the one who completely utilize their knowledge for commercialisation in organisational context. Economic performances are influenced directly from high growth firms through transformation, employment and productivity extension; on the other hand economic and social outcomes have vaster consequences.
The successful entrepreneurial firms leave the spill over outcome on the development of other organisations and also on the regional economic and social consequences. When entrepreneurs are confused with their innovative ideas then they opt to do experiments for knowing the possibility of success. Entrepreneurship and experimentation are related to each other as entrepreneurs firstly experiment their innovative ideas and analyse after some time about the growth and profit in terms of cash flow, experiments are very helpful as they provide the information about the possibility of ultimate success. So, entrepreneurs get an idea of how to continue their business with the help of experiment (Kerr and Rodhes-Kroph, 2014). The impressive innovation and productivity in surviving firms are encouraged by the high growth firms which are favourably affected on the productivity as the resources of weaker firms are transferred to stronger firms. High growth organisations contribute to economic performance. High growth firms are major innovators, these firms are calibre to perform and procure from victorious innovation.
Entrepreneurship and Management
For the growth of the firm, it is very necessary to be innovative, innovative resources leads an organisation to grow two times faster. High growth firms are very important for economic performance, as they help in improving productivity by advancing the relocation of resources amongst firms and more quick entries and exits within their sectors. On the other hand, by including internal reformation within individual entrepreneurial firms get support to lift up multi factor productivity growth by external reformation within sectors. The firms which are growing very quickly, they are highlighting their contribution to the development of local resources which support in enhancing the productivity of other local firms (Koryak, et al., 2015). Entrepreneurial businesses are creative and innovative in nature, entrepreneurial business has more potential and they are more calibre in terms of growth as compared with small businesses. Entrepreneurial operations believe in creating their own markets with the help of their innovative ideas and strategies, hence they are not limited to existing markets. On the other hand, small business usually performs and operates in an initiated industry and they are known by their behaviour of operating within certain market; they perform in terms of particular locality (Lechner and Gudmundsson, 2014).
Entrepreneurial businesses are potential for growth. Entrepreneurial ventures do not only focus on survival, profit and sales; they usually set some objectives and make strategies to achieve growth, targets, and better position in market (Smith and Tendai, 2014). Management and leadership are very prime characteristics for entrepreneurs to achieve success and growth. It is not mandatory that every managers or leaders are entrepreneur and in the same manner it is also not important that every entrepreneur have quality of management and leadership. In business it is very necessary to be productive enough to achieve the strategic objective and for this entrepreneurs have to own the talent of both, the entrepreneur and of the calibre manager. Entrepreneurs and managers both are essential for the success of the business as both the entrepreneurial and managerial functions are different from each other; and a business requires the strategies by each individual.
Entrepreneurs usually perform in different manner; they are very innovative in nature so they think creative and then recognize the opportunities and plan innovative strategies for the growth of the business. On the other side, management is inclusive of various functions such as planning, organising, leading and controlling. Entrepreneurs are very much calibre to discover the best opportunities and establish the business. They also have to manage the diverse business functions such as accounts, production, marketing, administration, public relations and human resources. Business cannot be successful only with the innovative ideas and creative strategies, but it requires proper management to initiate the strategies in a particular manner to achieve the objectives and growth productively. A successful entrepreneurial firm is the combination of entrepreneur and manager, as management and entrepreneurship is related to each other. If an entrepreneur has the calibre of both the entrepreneur and management then this is the best combination of skills for the growth of business (Neffke, et al., 2018). It can be said that the entrepreneurs are with the qualities of speculation, coordination, arbitrations, observation, innovation and also with the good decision making quality.
Balancing Regional Development
Entrepreneurship is very mandatory and beneficial for the economic growth of the country, it is not only necessary for the business itself. Entrepreneurs believe in the passion and they follow their passion. Entrepreneurship is very helpful in decreasing unemployment in the country as when an entrepreneur establishes a business, and then human capital is required to raise the company. Consequently it creates new job opportunities which lead to economic growth. When an entrepreneur starts a new business then at initial stage they usually sell their product or provide their services at very low prices; as this would help people to get the opportunity to try the service or to check the product and they get to know about the qualities of the product at reasonable price. In this way, entrepreneurship support in strengthening the economy of a country (Parker 2018). Entrepreneurship supports the country in being advanced through their creative ideas as when they bring new products and innovative ideas to the market it makes the country advance in the fields of culture, science and technology.
From the above essay it has been concluded that entrepreneurs are the one who are inclusive of talents such as innovative, intelligent and ambitious. They are the one who not only think about the innovative ideas, they execute the creative ideas. Entrepreneurship is not only about creative thinking but it also includes the execution of innovative ideas which make changes to the society and help people with the problems they face each day. Entrepreneurship creates job so it is very helpful in decreasing unemployment which would leads to economic growth. Due to entrepreneur’s innovative approach, these entrepreneurial firms have more potential for growth than the small business. Entrepreneurial firms need effective and efficient management system along with the high degree of innovation and creativity. These firms cannot be successful only with the innovative ideas and creative strategies but it is required to manage these ideas and strategies in an appropriate and productive manner (Debrulle 2016). Hence, an entrepreneur has to be a good manager for the growth of business. It has been concluded that with the innovative ideas and strategies one can enhance their local resources for the growth of the business. Entrepreneurial firms help in economic growth through transformation, employment and productivity extension. Hence, above study explained the role of entrepreneurial firms in the economy why entrepreneurs are important to any country.
References
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