Entrepreneurship And Economic Growth Samples †MyAssignmenthelp.com

Question: Discuss about the Entrepreneurship And Economic Growth. Answer: Introduction Entrepreneur is a person or an individual, who instead of working under someone as employee, runs some small business, by making an assumption of all the rewards as well as risks of a business venture. An entrepreneur of an organization is mainly seen as an innovator of ideas and strategies regarding any business. He/she is regarded as the business leader of the organization, playing an important role in the business economy (Aulet and Murray 2013). The main objective of this report is to highlight the point on how to become an entrepreneur and the qualities an entrepreneur should have. They have the necessary skills and innovative mind to take any business to a higher level. With the right decisions and opinions, an entrepreneur can earn economic profits (Bailetti 2012). The report gives a brief idea about the entrepreneurs role on starting an independent venture, a family business, a new corporate enterprise or a new franchise. It throws light on the four options by comparing and contrasting them. Furthermore, it discusses about a hypothetical business start up, a brief description of the industry and the type of entrepreneurship. It also includes the benefits and drawbacks of the above four options, with some recommendations. Discussion Entrepreneurship is being regarded as a critical component of economic growth and innovation. It is considered as an integral part in the growth of economic strategies of national and local governments across the world. Governments encourage the entrepreneurial ecosystems development, which commonly include venture capitalists, entrepreneurs and the government sponsored events in order to assist the entrepreneurs. Moreover, it may include the non-governmental organizations, like association of entrepreneurs and educational programs (Barringer 2012). Brief description of the Industry or the Market My plan is to start a costume jewelry business in Sydney. Different designs of earrings, necklaces, pendants and bangles will be manufactured. The products uniqueness and originality will differentiate it from the citys other jewelers, hence, attracting more customers. Taking the capital into consideration, the jewelry shop would be medium in size, initially. The customers will get to choose from a wide variety of costume jewelry offering. Moreover, they will have the facility to customize their favorite items, in accordance with their choice. The shops design highly matters in order to attract the target audience. Therefore, shop will be decorated with colorful lights all over, along with wall paintings and graffiti. All business organizations have various internal as well as external environmental forces which is impactful on its growth. It cannot be controlled by the business owners and themanagement teams and hence directly or indirectly affects the organization. The specific forces can be the competitors, customers, creditors, socio cultural organizations, national and international organizations, government, political parties and others. The above forces may affect the businesss progress and growth directly or indirectly. A business organization has some general and specific forces (Baum, Frese and Baron 2014). The general forces affect an individual firm indirectly and specific forces are the ones which affect an enterprise regularly, that is, on a daily basis. Moreover a business organization keeps changing, that is, it is dynamic in nature, be in the terms of technological improvement, change in the consumer or any new competitions entry in the market. In any business organization, there are uncertainties, as it is too difficult to predict the future happenings, especially when the changes are too frequent (Bridge and O'Neill 2012). Type of Entrepreneurship Starting a business is an important career step. The first and foremost step an individual needs to undertake before starting a new business venture is to decide what type of entrepreneur he/she wants to become. It is important to have a clear understanding on the type of business a person hopes to acquire. It can be an independent business or buying a franchise or a corporate enterprise. In my opinion, starting an independent venture is more beneficial than buying an existing one, as the business type fits my personal as well as business goals. The reasons why I would like to start my own business are listed in this report (Drucker 2014). Firstly, an independent business owner is his/her own boss, therefore, no risk of getting fired. He/she will have the freedom to change his/her products, services and business pattern anytime, based on the personal choices and desires, keeping in mind the fluctuating market conditions. Secondly, independent owners have the authority over their investment timings and decisions depending on the capital. Thirdly, independent business owners have the accessibility to expand their business anytime they want, after doing a detailed homework or research work regarding the background of the business. Even they can downsize their projects scope, as per their wish (Kelley, Singer and Herrington 2012). Fourthly, independent owners have certain advantages regarding their lifestyle, because they are in charge of their business. It is their choice when and where to work, as a result, they can spend quality time with their family whenever they want. If a person wants to run a business at his/her home, he/she will have the advantage of working anytime he/she wishes, eliminating the commuting time (Kirzner 2015). Fifthly, an independent business owner will have the chance in making more money, than being employed under someone. He/she will get more benefitted from the hard work. Moreover, independent owners have more learning opportunities from what they are doing along with several business functions. Last but not the least, as an independent business owner; one can really enjoy the creative freedom and satisfaction. He/she will be able to implement new ideas and skills, watching the business succeed (Koellinger and Roy Thurik 2012). Benefits and Drawbacks of various Entrepreneurship types There are both advantages and disadvantages of several entrepreneurial types. Those are discussed in this report. Independent Entrepreneurship Benefits: An independent business owner is his/her own boss, therefore, no chance of getting fired. Independent entrepreneurs can take all the decisions, depending on the business pattern and style. Authority over the investment timings, depending on the capital. Expansion of business anytime they want. They can select the site of their business and work as per their wishes. They can implement new ideas and skills, while having a creative freedom and self satisfaction as there is no baggage (Kuratko 2016). Drawbacks: Starting an independent business requires high commitment of energy and time. One needs to pour his/her heart into the company for its success. The success of the business totally depends on the entrepreneurs talent and skills. Delayed profitability, as brand recognition plays a major factor in this. Independent owners have limited financing; therefore, they may have higher costs of investment. The success rate is less in the beginning. Other factors like financial risks, stress, time commitment and undesirable duties such as firing people, proves to be disadvantageous for independent entrepreneurship (Sambharya and Musteen 2014). Family Business Benefits: There is a longevity and stability in the leadership pattern, which benefits the organization. The family position determines who will lead the business and how. There is a huge sense of accountability and commitment as the family needs are in stake. Longer term of commitment helps in adding more benefits to the organization. Better understanding and effective marketing and sales. Family members will perform different tasks for the progress of their business; therefore there will not be any flexibility issues or communication gaps. The long term perspective will make the family members take good strategic measures and decisions. There will be no employee cost, as the family members will be working at the firm (Schaper et al. 2014). Drawbacks: Conflict can happen anytime, which will mar the progress of the business. This Governance issues will occur; as a result it will create a miscommunication among the family members. Quarrels among the family members can often cause financial and legal trouble to the company. Lack of succession plans. If a family member lacks the desired quality, it will prove disadvantageous for the organizations success. Lack of discipline and poormanagement structure has negative influences on the business (Storey 2016). Corporate Enterprise Benefits: The resources are easily and readily available which gives them full accessibility to finances, strong sales force, existing brand, channels of distribution, strong customer base and others. High job security is there. Mistakes are not that costly as the company has the ability to absorb any failure. More number of employees can help in generation of new ideas and opinions. With the employees creative and innovative ideas, the organization can compete in the global market and generation of new products becomes easier. Create a good understanding among the workers as they work together to achieve a common goal (Tervo 2014). Drawbacks: The concept is fully owned by the company, where the employees are its mere puppets. Conflicts among the employees can mar the companys progress. Employees have to work, keeping in mind the companys policies and procedures. An employee cannot just implement his/her ideas without the companys approval. Lack of discipline and commitment among the employees will have a negative impact on the companys rapport. At times, the company may face high financial risks, which will impact the employees too (Urbano and Aparicio 2016). Franchisee Entrepreneurship Benefits: The investment costs are comparatively lower. Franchisee entrepreneurship has the advantage of brand recognition. It becomes easier in building a customer base. Raising finance is easier. Industry experience is not required in most of the cases. It helps in limiting the competition (Zahra and Nambisan 2012). Drawbacks: Even when it is an individuals own business, the profits are to be shared with franchisor. There are several restrictions on certain activities related to marketing. If seen from the perspective of ownership, franchisee entrepreneurship proves to be disadvantageous. It can affect the personality of the business owner, as he/she before taking any decision needs the franchisors approval. The business owner is not his/her own boss. The risk factor always works that the franchisor may go bankrupt (Aulet and Murray 2013). Buying an existing business or starting a new one Buying an existing business can be beneficial for a person as it is already generating profits and cash flow. Established and strong customer base as well as brand recognition. However, if the company has some negative impact or reputation, it will prove disadvantageous for the buyer. A thorough research work needs to be done before buying an existing business. At times, setting up of new workplace policies and procedures become difficult. There are times, when buying a company costs more than starting a new one. Buying an existing company may not satisfy the needs and desires of the buyer (Barringer 2012). Recommendations In my opinion, starting a new business is more beneficial. An independent business owner is his/her own boss, therefore, no risk of getting fired. Independent owners have the authority over their investment timings and decisions depending on the capital. Independent business owners have the accessibility to expand their business anytime they want, after doing a detailed homework or research work regarding the background of the business (Kirzner 2015). Even they can downsize their projects scope, as per their wish. They have certain advantages regarding their lifestyle, because they are in charge of their business. An independent business owner will have the chance in making more money, than being employed under someone. They have more learning opportunities from what they are doing along with several business functions (Drucker 2014). Conclusion To conclude, a companys main aim is to achieve the organizational goals and motives. The workplace policies vary from organization to organization. The objectives as well as the work flow helps in the growth of any organization. Marketing involves the distribution of products, its promotion as well as pricing. The marketing function also includes the digital marketing, as it is very important in modern days. It enhances the sales of the product and increases the profit amount, while promoting the brand on a global platform. Web technology improves the business marketing by helping it to reach the furthest corners. Online purchases help the business get international acclamation, but it should be checked and tracked on a daily basis to check whether the customers are facing any kind of difficulties or not. The implementation of new and innovative ideas helps in enhancing the business performance, which in turn, will help in achieving the business goals and targets. References Aulet, W. and Murray, F., 2013. A tale of two entrepreneurs: Understanding differences in the types of entrepreneurship in the economy. Bailetti, T., 2012. Technology entrepreneurship: overview, definition, and distinctive aspects.Technology Innovation Management Review,2(2), p.5. Barringer, B., 2012.Entrepreneurship: Successfully Launching New Ventures, (2012). Baum, J.R., Frese, M. and Baron, R.A. eds., 2014.The psychology of entrepreneurship. Psychology Press. Bridge, S. and O'Neill, K., 2012.Understanding enterprise: entrepreneurship and small business. Palgrave Macmillan. Drucker, P., 2014.Innovation and entrepreneurship. Routledge. Kelley, D.J., Singer, S. and Herrington, M., 2012. The global entrepreneurship monitor.2011 Global Report, GEM 2011,7. Kirzner, I.M., 2015.Competition and entrepreneurship. University of Chicago press. Koellinger, P.D. and Roy Thurik, A., 2012. Entrepreneurship and the business cycle.Review of Economics and Statistics,94(4), pp.1143-1156. Kuratko, D.F., 2016.Entrepreneurship: Theory, process, and practice. Cengage Learning. Sambharya, R. and Musteen, M., 2014. Institutional environment and entrepreneurship: An empirical study across countries.Journal of International Entrepreneurship,12(4), pp.314-330. Schaper, M.T., Volery, T., Weber, P.C. and Gibson, B., 2014.Entrepreneurship and small business. Storey, D.J. ed., 2016.Entrepreneurship and new firm. Routledge. Tervo, H., 2014. Starting a new business later in life.Journal of Small Business Entrepreneurship,27(2), pp.171-190. Urbano, D. and Aparicio, S., 2016. Entrepreneurship capital types and economic growth: International evidence.Technological Forecasting and Social Change,102, pp.34-44. Zahra, S.A. and Nambisan, S., 2012. Entrepreneurship and strategic thinking in business ecosystems.Business horizons,55(3), pp.219-229.