The relationship between entrepreneurship, corporations, and economic development is complex.
By applying this model to a nation¶s economy, important conclusions can be drawn. A nation¶s economic development depends on successful entrepreneurship combined with the force of established corporations. However, the beneficial value of this mechanism varies with the national income, as measured by GDP per capita. At low levels of national income, self-employment provides job opportunities and scope for the creation of markets. As GDP per capita income increases, the emergence of new technologies and economies of scale allows larger and established firms to satisfy the increasing demand of growing markets and to increase their relative role in the economy. At the same time, the numbers of business start -ups decrease as a growing number of peopl e find stable employment. Finally, as further increases in income are experienced, the role played by the entrepreneurial sector increases again, as more individuals have th e resources to go into business for themselves in a business environment that allows the exploitation of opportunities. In high-income economies, through lower costs and accelerated technology development, entrepreneurial firms enjoy a newly found competitive advantage. Thus, entrepreneurs in countries with different levels of GDP per capita face different challenges. As a result, policies and conditions favorable to entrepreneurship in one country (or region) may not be effective or favorable in another.
What is the importance of entrepreneurship to the economy?
The importance of entrepreneurship to any economy is like that of entrepreneurship in any community. Entrepreneurial activity and the resultant financial gain are always of benefit to a country. If you have entrepreneurial skills then you will recognise a genuine opportunity when you come across one. We Simplify the Internet has franchise opportunities available globally for the all-inclusive fee of $49,700. The company, who has been awarded the acco lade
of being rated the Number 1 Internet Consultancy business for six consecutive years, has franchisees operating in 87 countries worldwide. Because a We Simplify the Internet consulting business can be run from home, newcomers cite this as an advantage they also appreciate the full support and training offered them by the corporation. The importance of entrepreneurship and innovation to any economy is like that of entrepreneurship in any community. Entrepreneurial activity and the resultant financial gain are always of benefit to a country. If you have entrepreneurial skills then you will recognise a genuine opportunity when you come across one. We Simplify the Internet has franchise opportunities available globally for the all-inclusive fee of $49,700. The company, who has been awarded the accolade of being rated the Number 1 Internet Consultancy business for six consecutive years, has franchisees operating in 87 countries worldwide. Because a We Simplify the Internet consulting business can be run from h ome, newcomers cite this as an advantage they also appreciate the full support and training offered them by the corporation.
Entrepreneurship Aids the Economy Most economists agree that entrepreneurship is essential to any economy
(The following one-page essay is taken from the U.S. Department of State publication, Principles of Entrepreneurship.)
Entrepreneurship Aids the Economy Most economists agree that entrepreneurship is essential to the vitality of any economy, developed or developing. Entrepreneurs create new businesses, generating jobs for themselves and those they employ. In many cases, entrepreneurial activity increases competition and, with technological or operational changes, it can increase productivity as well. In the United States, for example, small businesses provide approximately 75 percent of the net new jobs added to the American economy each year and represent over 99 percent of all U.S. employers. The small businesses in the United States are often ones created by self -employed entrepreneurs. "Entrepreneurs give security to other people; they are the generators of social welfare," Carl J. Schramm, president and chief executive officer of Ewing Marion Kauffman Foundation, said in February 2007. The foundation is dedicated to fostering entrepreneurship, and Schramm is one of the world's leading experts in this field. Others agree that the benefits of small businesses go beyond income. Hector V. Baretto, administrator of the U.S. Small Business Administration (SBA), explains, "Small businesses broaden the base of participation in society, create jobs, decentralize economic power, and give people a stake in the future." Entrepreneurs innovate and innovation is a central ingredient in economic growth. As Peter Drucker said, "The entrepreneur always searches for change, responds to it, and exploits it as an opportunity." Entrepreneurs are responsible for the commercial introduction of many new products and services, and for opening new markets. A look at recent history shows that e ntrepreneurs were essential to many of the most significant innovations, ones that revolutionized how people live and work. From the automobile to the airplane to personal
This is particularly true in
. for instance. According to the 2006 Summary Results of the Global Entrepreneurship Monitor (GEM) project. agree that entrepreneurs can play a crucial role in mobilizing resources and promoting economic growth and socio-economic development. by definition. They enrich people's lives in numerous ways . such as the United Nations and the Organization for Economic Cooperation and Development. improving communications. innovate far more than large ones do. entrepreneurs provide consumers with goods and services for needs they didn't even know they had. it implies attention and willingness to take advantage of unexploited opportunities. and improving health care. entrepreneurial behavior remains a crucial engine of innovation and grow th for the economy and for individual companies since. According to the Small Business Administration. providing new forms of entertainment.making life easier." The GEM project is a multi-country study of entrepreneurship and economic growth. small technology companies produce nearly 13 times more patents per employee than large firms. Innovations improve the quality of life by multiplying consumers' choices. Founded and sponsored by Babson College (USA) and the London Business School in 1999. International and regional institutions. Small firms in the United States. the study included 42 countries by 2006.computers .individuals with dreams and determination developed these commercial advances. They represent one-third of all companies in possession of 15 or more patents. Small firms also are more likely than large companies to produce specialty goods and services and custom-demand items. "Regardless of the level of development and firm size. As Schramm has suggested. to name a few.
. The economic success of nations worldwide is the result of encouraging and rewarding the entrepreneurial instinct. But in the 1800s. For it's the entrepreneurs who serve as the spark plug in the economy's engine. Why is that? Because it's entrepreneurial energy. Entrepreneurs seek disequilibrium--a gap between the wants and needs of customers and the products and services that are currently available. The most dynamic societies in the world are the ones that have the most entrepreneurs. where successful small businesses are primary engines of job creation and poverty redu ction. governments may wish to pursue policies that encourage entrepreneurship. plus the economic and legal structure to encourage and motivate entrepreneurs to greater activities. A society is prosperous only to the degree to which it rewards and encourages entrepreneurial activity because it is the entrepreneurs and their activities that are the critical determinant of the level of success. The Role of the Entrepreneur Entrepreneurs occupy a central position in a market economy. economists viewed entrepreneurship as a small part of economic activity. For years. activating and stimulating all economic activity. the Austrian School of Economics was the first to recognize the entrepreneur as the person having the central role in all economic activity. prosperity. growth and opportunity in any economy.the developing world. It is the entrepreneur who undertakes the risk of the enterprise in search of profit and who seeks opportunities to profit by satisfying as yet unsatisfied needs. creativity and motivation that trigger the production and sale of new products and servi ces. For all of these reasons.
raw materials. encouraged and rewarded as much as possible. sales and distribution of that product or service. They're the most important people in a market economy --and there are never enough of them. Entrepreneurs are a national treasure. you are extremely important to your world. As an entrepreneur. and should be protected. willing to change quickly when they get new information. Entrepreneurs are optimistic and future oriented. skilled labor and land or buildings req uired to produce a product or service. I'm going to suggest that you take
. manufacturing facilities. willing to try many different strategies to achieve their goals of profits. and all prosperity in the nation. one that contributes to the health of the economy. they believe that success is possible and are willing to risk their resources in the pursuit of profit. They create all wealth. And they're capable of arranging the marketing. To help you develop a better bus iness. all opportunities. They continually seek out customer needs that the competition is not satisfying and find ways to offer their products and services in such a way that what they're offering is more attractive than anything else available. They invest and risk their money--and other people's money--to produce a product or service that can be sold at a profit. all jobs. They're fast moving. nourished. entrepreneurs are unique because they're capable of bringing together the money.entrepreneur then brings together the factors of production necessary to produce. offer and sell desired products and services. More than any other member of our society. And they're flexible. Entrepreneurs are skilled at selling against the competition by creating perceptions of difference and uniqueness in their products and services. Your success is vital to the success of the nation.
need and are willing to pay for? What are your three best opportunities?
y Identify the steps you could take immediately to operate your business more
efficiently. to take risks if necessary to build your business. especially regarding internal operating systems. I will also list some of the more important influences and factors that help people decide to become entrepreneurs. better.some time to sit down. knowing
what you now know.
y Tell yourself continually "Failure is not an option. If your business burned to the ground
today." Be willing to move out of
your comfort zone. This paper will also include some programs that can help entrepre neurs achieve success in their business venture. and implement the following actions: What opportunities exist today for you to create or bring new products or services to your market that people want. what would you not get into again? What would you do differently?
Importance of Entrepreneurship
Entrepreneurism has been found to be a vital part of the economy. you wouldn't get into or start up again?
y Imagine reinventing your business. and you had to start over. I will show evidence that entrepreneurs have a positive impact on the economy. In a poll conducted by the London School of Business and the
. In this paper. cheaper ways
to sell your products or reduce your costs of operation. answer the following questions. Is there anything you're doing today that.
y Use your creativity rather than your money to find new. What could you do immediately in one or both of these areas?
y Imagine starting over.
000 adults in each country (Kautz). Through interviews and surveys. showed large differences in growth rates. ³Government policies and programs targeted significantly at the entrepreneurial sector will have a more significant. 70 percent of new startups were found to already employ at least one person. direct impact than programs simply aimed at improving the national business context´ (Kautz). and 80 percent planned to hire within the next year
. one -third of this difference could be traced directly back to entrepreneurs (Kautz). ten countries were analyzed to measure the activity of entrepreneurs and the affect they were having on the economy. The comparison of those countries ranking high in entrepreneurial activity and those ranking low. it has been estimated that entrepreneurs have created 34 million new jobs since 1980 (Fox). The number one recommendation stated. it has been found that 76 percent of bus iness startups in 2003 were driven by the desire to pursue opportunities (Cornwall). From these studies. This evidence shows how critical entrepreneurs are to the economy. Furthermore. This is evidence that entrepreneurism is not a hindrance on the economy. Also. it was found that levels of entrepreneurship account for significant differences amongst the countries surveyed. Over a two -year period. ³promoting entrepreneurship and enhanc ing the entrepreneurial dynamic of each country should be an integral element of any government¶s commitment to boosting economic well being´ (Kautz). Another recommendation was. The most important reason why entrepreneurs help the economy is due to the creation of new jobs.Kauffman Foundation. recommendations were made on what each country can do to enhance entrepreneurship. These studies consisted of in-depth interviews of over 300 experts in each country and surveys of 1. In contrast to the belief that most entrepreneurs are those that were out of work and unable to find a job. It was stated that putting these recommendations into practice would have a significant and long lasting improvement to th e economy.
she never would have gone into business on her own. I talked to my mother-in-law. It has been found that 2/3 of all inventions come from entrepreneurs (Fox). Without these influences. Another way that entrepreneurs have helped the economy is by innovation and research and development. Entrepre neurs have had a major impact on the well being and strength of our economy because of these inventions. it plays a major role in our economy. The opportunity that she had was in the graphic arts field. and without all of those inventions the world would be a much different place. she came across many individuals and companies that liked her work and was interested in giving her all of their projects. An obvious observation by this statistic is that without entrepreneurs. To get an idea of what influences are important in starting a business. New inventions can improve the economy because they can provide better ways of doing tasks. our economy would not benefit from the boost they give from added business and ideas. Without entrepreneurs. and the motivation to enter business for herself. Although this is not the number one reason individuals pursue entrepreneur activities. Before agreeing to start her own business from this opportunity.(Cornwall). After pondering t he question. who began the business Alikat Creations. she decidedthat she liked the chance of individuality and the potential for increased income. As she worked in this industry. and can also lead to new business that contribute to the economy. This data is significant evidence that entrepreneurism leads to new jobs. She told me that the most important influence in beginning her business was the opportunity that she saw. My mother-in-law also stressed to me that another
. and the wealth the owner can obtain will help boost the economy by providing new products as well as the spending power created for the entrepreneur. she had to decide whether this was something she wanted to do. This is a major contribution to the economy. Both a new business. Entrepreneurism also helps the economy by creating wealth for many individuals seeking business opportunities.
As I look into other cases. This center is also a very useful tool to entrepreneurs to help
. This is a very important factor that an entrepreneur needs to take into consideration. I have seen that many businesses fail because of cash flow and resources. As I asked my mother-in-law about other factors for her starting her business. then the business will not be pursued. Last semester. My mother -in-law told me that without the support of her family and the help from previous coworkers. Luckily for her. and many other resources that may be needed to get a business started. Also.important influence was the strong support system she had. The primary program I want to focus on that is designed to help entrepreneurs is the Miller Business Innovation Center. The next most important factor I found in my research was motivation. The most important factor that I uncovered in entrepreneurism was the level of perceived opportunity. This coincides with the reason why my mother-in-law began her own business. This is the same issue that my mother-in-law dealt with. It was this influence and the encouragement that she received that helped her get through some of her more difficult times. however. If the person can¶t find enough motivation by the opportunity. This is a facility that leases out office space to entrepreneurs at a discount rate and provides them with equipment. training. My mother -inlaw has family that encouraged her to take advantage of the opportunity. the business she began did not require a lot of money and she already had the equipment that she needed. mentoring. I was in a class where some representatives of this center came and spoke to us about their facility. sh e had a network of professionals from her previous two jobs that could provide advice and help with some of the projects she took on. and other activities take place amongst the entrepreneurs at the center t o help grow the business. she mentioned to me that financing and the availability of resources were her biggest concerns. Also within this center. she probably would not have been as successful during the time she was in business for herself. networking.
and the study of cases and other readings that I have done. I have uncovered data and studies that support entrepreneurship is important to the economy. can contribute to the economy and make this country a better place to live for all. This job satisfaction is important to your self-worth. The new challenges can become very rewarding as you work through them. In this paper. Entrepreneurship is an opportunity that can provide new and interesting challenges. This center is located at the Miller Campus of Salt Lake Community College in Sandy. but on a personal level as well. Upon talking to my mother-in-law. I can see that entrepreneurship is very important not only to the economy. and job satisfaction that will follow my entrepreneurial activity. financial rewards. The rewards to starting a business can be great. This is a program founded by the Kauffman Foundation and began at the University of Southern California. As was the case with my mother-in-law. Another program that I have found that interests me is FastTrac. entrepreneurship was the opportunity that made her happy. this is a tool that I will consider using if and when I find an opportunity to found a business upon. and can also provide networking. It is very rewarding to accomplish something that others do not. I know that happiness will come from the independence. Entrepreneurism also provides a way for you to become self-sufficient. and entrepreneurism can provide this chance.
. Legal. Utah. This is an opportunity that I hope to have in the near future. This program is designed to train an entrepreneur with business insights. Because of its close proximity. not only financially. and marketing tools are also provided within the center to help entrepreneurs. I also want to give my perception on why entrepreneurship is an important opportunity for individuals. accounting. If I can uncover the right opportunity.reduce risk. like other entrepreneurs. leadership skills. but also to the individuals that decide to go into business for themselves. Then I. This program allows people to grow into entrepreneurs that will have the skills needed to begin a business.
.Joseph Schumpeter Entrepreneur has to redirect resources from areas of low or diminishing results to areas of high or increasing results. . He has to slough off yesterday and to render obsolete what already exists and is already known.David H. Every developed nation have benefited from their entrepreneurs in building the
. Entrepreneurship therefore challenges the order of society through creat ive changes. Established ways of doing things are destroyed by creative. It implies that effectiveness rather than efficiency is essential in business. Maximization of opportunities is a meaningful. Holt (1993) Resources to produce results must be allocated to opportunities rather than to problems . indeed a precise definition of the entrepreneurial job.ROLE OF ENTREPRENEURSHIP IN ECONOMY
Entrepreneurship is basically a process of ³creative destructions´. .Peter Drucker (1964) Entrepreneurship plays an important role in the development of economy. Entrepreneurship is the process and entrepreneurs are innovators who use the process to shatter the status quo through new combinations of resources and new methods of commerce.Peter Ducker (1974) Entrepreneurship is the process of creating wealth by bringing together resources in new ways to start a venture that benefits customers and rewards its founders for their innovation.
. new and better ways of doing things.
. Joseph Schumpeter (1911-1950) explains this. He has to create tomorrow.
Pawar in computer education are few other examples of successful entrepreneurs in recent times. did I tell you he makes $5-6 million per year with Google ads? Similar to Markus Frind story. Gone are the days when you needed huge capital and veteran management teams to form companies and to wait for another several years to rake in the profit. In Indi a. For this. who steered the software industry to new heights through his Microsoft Company. elective courses are available in many engineering disciplines. Bill Gate in USA is one such entrepreneur. By the way. numerous examples exist for successful entrepreneurs. Government is also keen to develop the entrepreneurship skill in emerging technocrats. He is the only employee in his company. who successively built empire of their corporate structure. Dhirubhai Ambani grew to a phenomenal height through Reliance industries. Entrepreneurs are defying the logic and business rationale to make things happen individually. another entrepreneur Dave Lu from FanPop also makes millions from his
. He spends about two hours a day in his house managing his website that gets twelve billion page views a year. This is probably the best time in our history to pursue entrepreneurship. near Regional Engineering Colleges at Allahabad and Jamshedpur industrial estates have been established for giving en trepreneurial opportunities to up-coming technocrats. Jamsheedjee Tata. For example. Concept of industrial estate has emerged during recent years.
Role Of Entrepreneurship In Conceptual Economy
The principle of entrepreneurship still applies in principle. Many big industries and engineering institutions have industrial estates in near vicinity. in Steel Industry.economy. Markus Frind is the founder of a free dating site Plentyoffish . but the medium has changed drastically.
the highly successful social networking site on the Internet. Conceptual economy encourages entrepreneurs to use both left and right brains. providing a great social and networking platform for small businesses and entrepreneurs. Mark hacked the Harvard student records for fun and created a networking site for his fellow students. the concept has revolutionized the online social networking scene. design. Rather. Corporate world usually takes the back seat when it com es to adopting new ventures and most likely will be the last group to realize and accept the arrival of this economy. Entrepreneurs must take the lead in conceptual economy. At Harvard. One trait that is common with both entrepreneurs is that each of them is leveraging on simple inexpensive tools that are readily available to most entrepreneurs. Microsoft would have never thought of starting Facebook . Recently. they are conceptually leveraging on their technical skills as well as testing their creative skills to conceptualize. Mark was a Harvard dropout with a great idea that was ahead of his time. Fanpop is a place where fans of anything and everything can share and interact with fellow fans. the site has seen a huge surge. develop and market their ideas . You might ask how these successful online ventures are relevant to the conceptual economy. Mark turned down one billion dollar
. Technical and subject matter experts like Markus and Dave are not focusing solely on their technical skills.in most cases on their own without any help. In the beginning. Facebook was popular among only High School and College students. In a short period of time. The site became very popular. What it took was the guts of a visionary young entrepreneur by the name of Mark Zuckerberg.website. With the recent change in their policy to include adults.
so by surveying the current state of research.cash offer from Yahoo! validating the notion that this is just a tip of t he iceberg and the upcoming opportunities are endless. Although economic development lacks a µgeneral theory¶ of entrepreneurship. a secondary
. primary -sector based societies into high-income service and technology based societies. Imagine the power of bringing captive group of individuals from around the world who share common interest. Entrepreneurship in developing countries remains a relatively under -researched phenomenon. Potential of social networking sites like Facebook is far from being fully realized. This paper surveys the progress with the purpose of distilling the outlines for a more general theory of entrepreneurship in economic development. much progress has been made in extending the understanding of entrepreneurship in the process of development.
Entrepreneurship in Economic Development
What is the role of entrepreneurship in economic development? At a minimum the answer should be able to explain the role of entrepreneurs in the structural transformation of countries from low income. this economic model will affect every aspect of the society. As large businesses and traditional knowledge workers stay skeptics and try to analyze the concept. Eventually. true beneficiaries will be the entrepreneurs who choose to take the initiatives. and by discussing the role of entrepre neurship in dual economy models of structural transformation and growth. entrepreneurs have the opportunity to run with what they believe in and bring them to life. More broadly though. it should also be able to explain the role of entrepreneurs in the opposite pole of stagnating development (including conflict) and in high innovation -driven growth. same val ues and complimenting business opportunities. which could encompass a variety of development experiences. But for now and probably for the next couple of decades.
and that this should focus on the quantity. rather than by the desire for profit. Entrepreneur in English is a term applied to a person who is willing to launch a new venture or enterprise and accept full responsibility for the outcome. Key traits and characteristics of highly effective social entrepreneurs include ambition and a lack of acceptance of the status quo or accepting the world "as it is". for example. a French economist.he defined an entrepreneur as "one who undertakes an enterprise. Finally. Social entrepreneurs seek to
. venture or idea and is accountable for the inherent risks and the outcome. are shown to have more subtle effects. environmental. educational and economic conditions.objective of this paper is to identify avenues for further research. The social entrepreneur is driven by an emotional desire to address some of the big social and economic conditions in the world.
An entrepreneur is a person who has possession of a new enterprise. [note 1] The term was originally a loanword from French and was first defined by the Irish-French economist Richard Cantillon. poverty and educational deprivation. especially a contrac tor. Many routinely adopted policies for entrepreneurship. the quality. improve and transform social. Jean-Baptiste Say. acting as intermediatory between capital and labour".
Types of entrepreneurs  Social entrepreneur
A Social entrepreneur is motivated by a desire to help. the policy implications from the economic literature suggest that a case for government support exists. is believed to have coined the word "entrepreneur" in the 1800's . not a ll of which are conducive to growthenhancing entrepreneurship. and the allocation of entrepreneurial ability. such as provision of credit and education.
In contrast. (2009: 519) said that ³social entrepreneurs make significant and diverse contributions to their communities and societies.develop innovative solutions to global problems that can be copied by others to enact change. adopting business models to offer creative solutions to complex and persistent social problems´. Serial entrepreneurs are more likely to experience repeated entrepreneurial success. Many entrepreneurs may be primarily motivated by the intention to make their business profitable in order to sell to shareholders.  A lifestyle entrepreneur may decide to become self-employed in order to achieve greater personal freedom. more family time and more time working on projects or business goals that inspire them.
 Serial entrepreneur
A serial entrepreneur is one who continuously comes up with new ideas and starts new businesses. In the media.  Social entrepreneurs act within a market aim ing to create social value through the improvement of goods and services offered to the community. innovation and achievement. They are more likely to take risks and recove r from business failure. 
 Lifestyle entrepreneur
A lifestyle entrepreneur places passion before profit when launching a business in order to combine personal interests and talent with the ability to earn a living. a lifestyle entrepreneur intentially chooses a business model intended to develop and grow their business in order to make a long-term. sustainable and viable living working in a field where they have a particular interest. passion. the serial entrepreneur is represented as possessing a higher propensity for risk. Zahra et al. Their main aim is to help offer a better service improving the community as a whole and are predominately run as non profit schemes. A lifestyle entrepreneur may combi ne a hobby with a profession or they may specifically decide not to expand their business in order to remain in
. talent. knowledge or high degree of expertise.
they are viewed as job destroyers.
To avoid a crisis without precedent. Following discussions with them. Moreover. Both the state and large companies are disengaging from their previous social welfare roles. I realized the extent to which the world of work. Life style entrepreneurship is becoming increasing popular as technology provides small business owners with the digital platforms needed to reach a large global market. While many entrepreneu rs may launch their business with a clear exit strategy. supplying jobs to citizens. earning a liv ing in a way that facilitates self-employment. as we have known it. where a passion before profit approach to entrepreneurship often prevails. Now. Many lifestyle entrepreneurs are very dedicated to their business and may work within the creative industries or tourism industry. achieving a good work/life balance and owning a business without shareholders.control of their venture. I met with several people who were in training to become entrepreneurs or small business owners. a lifestyle entrepreneur may deliberately and consciously choose to keep their venture fully within their own control.
In the old work world. has radically changed.
Entrepreneurship and the New Economy
Sometime ago. the governing elites are trying to convince citizens to become more autonomous and to become entrepreneurs: This would relieve government from spending for social security programs and would also provide companies with the customers the y need but are reluctant to create
. large companies were perceived as social welfare providers. thousands of workers are being scratched from government payrolls as well. Common goals held by the lifestyle entrepreneur include earning a living doing something that they love.
Many of us are now using communication tools such a s cable television. and the Internet at home.25% Were downsized out of an existing job -. interactive TV. electronic mail.500. additional telephone services. of Home-Based Businesses.anymore.30% Had a great idea -.20% These numbers.
Is it possible to change a large portion of the working force into independent entrepreneurs without making them middle -age itinerants?
According to some recent statistics from Canon Corporation and the America n Association.38% Didn't like large company -. particularly the average age. The explosion of information available at home changes the
. modems. In addition. the average income reported by persons with home -based businesses suggests that it is not the American dream that makes these people seek autonomy and entrepreneurial opportunities.69% Income opportunity -.or part-time in home-based businesses.33% Needed a change -. lead me to conclude that qualified and experienced people are not greatly interested in trying to fulfill themselves in conventional jobs that mean being under the direction of another person. and their average 1995 yearly gross income was $34. Why did these Americans opt to start home-based businesses?
Here are some of the reasons they gave: Desire for independence -. Their average age is 48. It must be something else. more than 46 million Americans now work full.
providing initial direction from which one can deviate as market conditions change or with the emergence of new business opportunities. here are five major cha llenges that independent entrepreneurs are facing:
To use a business plan
In practice. and 3) to provide objectives and a frame of action for the entrepreneur. The software industry saw hundreds of companies collapse because
. or tailor-made
In the new economy. companies cannot afford to maintain their positions by offering product lines that cannot be alterable without major efforts and massive capital. Markets are so unstable. ad -hoc. A business plan should not be a straight -jacket. but only a starting point. When the first two are no longer required. consumers so unpredictable.rules of the game and allows independent entrepreneurs to compete advantageously with large companies. 2) to obtain monetary assistance from financial institutions. the business plan has three purposes: 1) to please government agencies that require it for subsidies or for startup support. that a company has no other choice but to improve its prod ucts and develop new ones to stay in business. entrepreneurs need not feel bound by their business plans.
To offer a product or service that is changeable.
Let us go back on the issue of whether large numbers of people will be transformed into middle-age itinerants and how this can be prevented. adaptable. The success or failure of such a social revolution brings up the question of the training necessary for persons who want to become successful independent entrepreneurs. In my judgment. The stakes are high in terms of market and quality of service because the leading segment of the work force is or will become autonomous.
entrepreneur should review their financial positions with independent accountants or analysts. Failure to do this will destroy the business. The autonomous worker must know the mechanics of accounting and always have in his mind a clear picture of his/her financial position. c hanging direction more quickly than large conventional companies. Independent entrepreneurs can more easily respond to small. the worst resources to go to in this area are a bank's representatives. a major Canadian company. highly specialized markets and can be more flexible. has said. Instead. This means that on top of a marketing strategy. the struggle for survival relies on this simple accounting principle: revenues must be superior to spending over a certain period of time. The new economy offers many opportunities for independent entrepreneurs.
To learn the basic principles of accounting
For all active companies.
To know basic marketing principles and sales techniques
Even with the best marketing strategy. the entrepreneur must be able to close a sale directly with the client. career teachers or governments employees probably know only the theory. For instance. Avoid counseling on marketing strategies from people who have never started a business themselves. As far as I'm concerned. it is necessary to kn ow basic sales techniques in order to successfully market a product or service.they did not adapt to change. "The bank s shall be treated as suppliers!"
To get away from the employee-worker mentality
Many people still believe that methods for obtaining high performance that
. Their counseling is often a pretex t for financial analysis finding out if a loan or a credit margin can be sold. Nothing is worth more to independent entrepreneurs than advice based on practical experience in marketing and sales. As the founder of Quebecor.
but. It should be noted that other analysts have focused their research on the traits and personal characteristics of entreprene urs in an attempt to understand and explain entrepreneurship.were developed in the industrial world must necessarily apply to independent entrepreneurs. Other studies have also noted other characteristics of successful entrepreneurs like internal locus of control. One of the first individuals to recognise its importance in economic theory was Richard Cantillon who said that ³The farmer is an entrepreneur who promises to pay the landowner. desire for
These challenges for the independent entrepreneur are nothing compared to what governments and large companies are likely to face in determining the eventual success or failure of the workforce metamorphosis. instead. They will have to cope with a new social reality in which their own role will be diminished. In the research for the psychological traits of an entrepreneur. some insist on maintaining rigid regular work hours at home. McClelland attempts to explain entrepreneurship by the need for achievement. ambition. aggressiveness. over -optimism. low aversion to risk taking. for his farm or land.
ROLE OF ENTREPRENEURSHIP IN THE ECONOMY AND SOCIETY
One of the inherent characteristics of the concept of entrepreneurship and which hampers research on the subject is that scholars have yet to come up with a unanimous description and explanation for it. a fixed sum of money without assurance for the profit he will derive from his enterprise´. For instance. even though the independent entrepreneur has complete control over his/her time. can use time as a flexible resource. A truly independent entrepreneur need not impose the old industrial 9 to 5 concept on him or herself.
personal values and need for power.autonomy. I was a member of the Students in Free Enterprise (SIFE). During my higher education studies at the University of Nairobi (UoN). Usually they do not bring about the change themselves. the role of an entrepreneur can thus be derived. From the onset. a partnership between business and higher education with a view of preparing the next generation of entrepreneurs and business leaders to create a better world for all. entrepreneurial activities exist. responds to it. the fact is that the multiplier effects which will come about as a result of his activities will be high ly beneficial to the economy and society. From these diverse explanations for entrepreneurship. University teams are concerned with improving the quality of life and standard of living through projects which Entrepreneurs see change as the norm and as healthy. but are not directed toward productive ends conducive to economic progress. Rather. however cultural explanations for a lack of entrepreneurship overlook what people have in common ± namely alertness for profit and to improve their general situations. and exploits it as an opportunity. Underdeveloped nations do not lack entrepreneurship. But ± and this defines entrepreneur and entrepreneurship ± the entrepreneur always searches for change. It is important to stress that entrepreneurs are present in all settings. ± Peter Drucker
. At this point of directing entrepreneurship activities t owards progressive ends is where my personal testimony begins. whether an individual is into entrepreneurship for purely profit margins or to promote social value.
new institutional forms. Entrepreneurship as a whole contributes to social wealth by creating new markets. Kibera Journal was launched in May 2007 amid much pomp and fanfare. Our hard work paid off as Kibera Journal managed to get Radio Simba to buy advertising space worth Kshs 250. In this particular project. we sourced for well trained journalists from Kibera and trained them on the SIFE pillars. After a few reconnaissance visits where we got to know about the background of the Kibera Media House. Environmental sustainability and Team/Project sustainability. One of the projects that l took part in when l joined the University of Nairobi SIFE (UoN SIFE) team was the Kibera Media House project. new industries. Entrepreneurship. the resources available to the government will likewise increase and hence enable it to offer social services
. And most importantly of all. the media house had been brought to its knees by incessant wrangling between the admin istration.000 for the upcoming editions of the journal. new jobs and net increases in real productivity. Financial literacy. untrained journalists. This involved reviving a community media house in Kibera and helping set up a journal. it set me firmly on the entrepreneurial path. Business ethics. When we first came into the picture. new technology. Kibera Journal. lack of funds and donor interference. We then helped them develop a sustainable business model which would ensure the sustainability of the Kibera Journal once we pulled out of the project and lastly.educate on: Market economics. Success skills. In this way. we enhanced the flow of information in the community and at the same time enabled them to do it in a way which put some money in their pockets and thus played a part in raising their standards of living. The jobs created through their activities in turn lead to equitable distribution of income which culminates in higher standards of living for the populace. we connected them with different business organizations which would be willing to pa rtner with them. So far. Kibera Jo urnal is still going on strong.
aggressiveness. a comparative international study assessing entrepreneurship¶s importance to economies worldwide concluded that the correlation between the level of entrepreneuri al activity and economic growth is greater than 70% and all nations with high levels of entrepreneurial activity have above -average rates of economic growth. Entrepreneurs see change as the norm and as healthy. In the research for the psychological traits of an entrepreneur. responds to it. the fact is that the multiplier effects which will come about as a result of his activities will be highly beneficial to the
. a fixed sum of money without assurance for the profit he will derive from his enterprise´. the role of an entrepreneur can thus be derived. whether an individual is into entrepreneurship for purely profit margins or to promote social value. over -optimism. It should be noted that other analysts have focused their research on the traits and perso nal characteristics of entrepreneurs in an attempt to understand and explain entrepreneurship. Other studies have also noted other characteristics of successful entrepreneurs like internal locus of control. But ± and this defines entrepreneur and entrepreneurship ± the entrepreneur always searches for change. develop the infra structure and keep law and order.like hospitals and schools. and exploits it as an opportunity. ± Peter Drucker One of the inherent characteristics of the concept of entrepreneurship a nd which hampers research on the subject is that scholars have yet to come up with a unanimous description and explanation for it. ambition. One of the first individuals to recognise its importance in economic theory was Richard Cantillon who said that ³The farmer is an entrepreneur who promises to pay the landowner. personal values and need for power. low aversion to risk taking. for his farm or land. From the onset. From these diverse explanations for entrepreneurship. McClelland attempts to explain entrepreneurship by the need for achievement. the Global Entrepreneurship Monitor Project. To cap it all. desire for autonomy. Usually they do not bring about the change themselves.
It is important to stress that entrepreneurs are present in all settings. I was a member of the Students in Free Enterprise (SIFE). At this point of directing entrepreneurship activities towards progressive ends is where my personal testimony begins. Usually they do not bring about the change themselves. however cultural explanations for a lack of entrepreneurship overlook what people have in common ± namely alertness for profit and to improve their general situations.economy and society. ± Peter Drucker
. But ± and this defines entrepreneur and entrepreneurship ± the entrepreneur always searches for change. and exploits it as an opportunity. entrepreneurial activities exist. a partnership between business and higher education with a view of preparing the next generation of entrepreneurs and business leaders to create a better world for all. University teams are concerned with improving the quality of life and standard of living through projects which Entrepreneurs see change as the norm and as healthy. Rather. but are not directed toward productive ends conducive to economic progress. Underdeveloped nations do not lack entrepreneurship. responds to it. During my higher education studies at the University of Nairobi (UoN).
When we first came into the picture. the resources available to the government will likewise increase and hence enable it to offer social services
. So far. We then helped them develop a sustainable business model which would ensure the sustainability of the Kibera Journal once we pulled out of the project and lastly. One of the projects that l took part in when l joined the University of Na irobi SIFE (UoN SIFE) team was the Kibera Media House project. Kibera Journal. In this particular project. Kibera Journal was launched in May 2007 amid much pomp and fanfare. This involved reviving a community media house in Kibera and helping set up a journal. Kibera Journal is still going on strong. Success skills. After a few reconnaissance visits where we got to know about the background of the Kibera Media House. the media house had been brought to its knees by ince ssant wrangling between the administration. we connected them with different business organizations which would be willing to partner with them. Entrepreneurship. The jobs created through their activities in turn lead to equitable distribution of income which culminates in higher standards of living for the populace. new institutional forms.000 for the upcoming editions of the journal. lack of funds and donor interference. Financial literacy. And most importantly of all. new technology. new industries. Entrepreneurship as a whole contributes to social wealth by creating new markets. Business ethics. Our hard work paid off as Kibera Journal managed to get Radio Simba to buy advertising space worth Kshs 250. In this way. Environmental sustainability and Team/Project sustainability. new jobs and net increases in real productivity. we enhanced the flow of information in the community and at the same time enabled them to do it in a way which put some money in their pockets and thus played a pa rt in raising their standards of living.educate on: Market economics. untrained journalists. we sourced for well trained journalists from Kibera and trained them on the SIFE pillars. it set me firmly on the entrepreneurial path.
a comparative international study assessing entrepreneurship¶s importance to economies worldwide concluded that the correlation between the level of entrepreneurial activity and economic growth is greater than 70% and all nations with high levels of entrepreneurial activity have above -average rates of economic growth. and exploits it as an opportunity. responds to it. But ± and this defines entrepreneur and entrepreneurship ± the entrepreneur always searches for change. ± Peter Drucker
. the Global Entrepreneurship Monitor Project. Entrepreneurs see change as the norm and as healthy. develop the infrastructure and keep law and order. Usually they do not bring about the change themselves.like hospitals and schools. To cap it all.
Being a self confessed aspiring entrepreneur. time frame. Pasted to the main entrance is a huge poster which outlines the services. l went to the Registrar of Companies for a simple name search for a new business that l want to launch with my business partner. of whom 2. The SIFE initiative is a step in this d irection as it seeks to promote entrepreneurship as an alternative to formal employment. I could just picture the officers coughing and sneezing
.With this in mind. inculcates the spirit of (social) entrepreneurship in them and imbues in them the option of becoming entrepreneurs and not going into formal employment. Other problems are inadequate infrastructure which raises the cost of doing business and risk of political instability in the run-up to the constitutional referendum to be held in August 2010 which specifically affects the tourism industry. l believe the greatest impediment to entrepreneurs in a country like Kenya is the lack of a culture which appreciates its role. This is especially important for a country like Kenya which has over 65% of the population as being youth. it would be thus prudent to see how we can promote entrepreneurship among the populace so as to tap into the benefits that will accrue from this approach. amount of fees charged and other procedures.5 million are unemployed and who many analysts consider a ³ticking time bomb´ as a projected increase in their number¶s could spark a people¶s revolution. the fact that university students are the movers of the projects enables them to understand the tenets of entrepreneurship. Just the other day. However in my opinion. l will use my country Kenya as an example and lay out the constraints that l and my ilk face with the most easily encountered one being bureaucratic procedures in starting a business and corruption in the relevant government offices which consequen tly eats time and raises the cost of starting a business. An important aspect that comes out is how the culture of entrepreneurship can be promoted. It stated that a name search takes 3 d ays yet the actual number of days is actually a week.
In order to attain this status. the private sector if provided with a conducive environment will go a long way in reducing this number but our aim is for the attainment of a middle income status for the Kenyan population by 2030 as per Kenya¶s economic blueprint. entrepreneurship is the key and the youth are the holders of this key. the government can not create jobs for all of them. has a high population which is yout hful and obviously. America is a proper example of how entrepreneurship can move
.as they went through old and dusty files to confirm that the name l wanted was free. Kenya as stated earlier.
of whom 2.with this in mind. amount of fees charged and other procedures. l went to the Registrar of Companies for a simple name search for a new business that l want to launch with my business partner. However in my opinion. I could just picture the officers coughing and sneezing
. Other problems are inadequate infrastructure which raises the cost of doing business and risk of political instability in the run-up to the constitutional referendum to be held in August 2010 which specifically affects the tourism industry. l will use my country Kenya as an example and lay out the constraints that l an d my ilk face with the most easily encountered one being bureaucratic procedures in starting a business and corruption in the relevant government offices which consequently eats time and raises the cost of starting a business. Being a self confessed aspiring entrepreneur. An important aspect that comes out is how the culture of entrepreneurship can be promoted. the fact that university students are the movers of the projects enables them to understand the tenets of entrepreneurship. Just the other day. The SIFE initiative is a step in this direction as it seeks to promote entrepreneurship as an alternative to formal employment . Pasted to the main entrance is a huge poster which outlines the services. It stated that a name search takes 3 days yet the actual number of days is actually a week. inculcates the spirit of (social) entrepreneurship in them and imbues in them the option of becoming entrepreneurs and not going into formal employment. time frame.5 million are unemployed and who many analysts consider a ³ticking time bomb´ as a projected increase in their number¶s could spark a people¶s revolution. This is especially important for a country like Kenya which has over 65% of the population as being youth. it would be thus prudent to see how we can promote entrepreneurship among the populace so as to tap into the benefits that will accrue from this approach. l believe the greatest impediment to entrepreneurs in a country like Kenya is the lack of a culture which appreciates its role.
America is a proper example of how entrepreneurship can move
. Kenya as stated earlier. the private sec tor if provided with a conducive environment will go a long way in reducing this number but our aim is for the attainment of a middle income status for the Kenyan population by 2030 as per Kenya¶s economic blueprint. In order to attain this status.as they went through old and dusty files to confirm that the name l wanted was free. has a high population which is youthful and obviously. the government can not create jobs for all of them. entrepreneurship is the key and the youth are the holders of this key.