Q2. Identify and discuss, with reference to acknowledged debate, how entrepreneurs can impact on the economy.
In the current essay I would like to consider how entrepreneurs can impact on the economy. Entrepreneur ”“ is a person who is seeking funds for the organization of the enterprise, and thus takes the entrepreneurial risk. Duties of the entrepreneur are:
– Implementation of laws and contractual agreements;
– Implementation of the material and moral compensation of employees of the enterprise, ensuring their social protection systems;
– The timely submission of financial disclosure statements;
– Timely payment of taxes;
– Declaration of bankruptcy in case of impossibility of performance of obligations to creditors.
Responsibility of the entrepreneur ”“ are the sanctions imposed in accordance with the law on the employer:
– for the improper performance of contracts;
– for violating the property rights of other subjects;
– the pollution of the environment;
– for violating antitrust laws, etc.
In the majority of cases entrepreneurs support economy and try to create workplaces. Entrepreneurs change the economy and try to add innovations and new ideas into it. Entrepreneurs can be the key instruments when economy can get help and be more diversified. Entrepreneurs definitely impact the economy and make certain changes and set directions.
Also, entrepreneur is a person who faces with the resolution difficult actions. In economics, business, finance, etc, there is more specific sense of being an individual who is willing to assume financial risk. From this point of view, the term refers to who identifies an opportunity and organizes the necessary resources to implement it.buy essay
It is common to use this term to designate a “person who creates a company”¯ or find a business opportunity, or someone who starts a project on their own initiative. There has been suggested that “being enterprising”¯ is one of the essential qualities of an entrepreneur, or businessman, with innovation and organization, as described in Entrepreneurs and the economy.
The perceptions of the research of entrepreneurs with terms are described as innovative, flexible, dynamic, able to take risks, creative and growth-oriented. The popular press, on the other hand, often defines the term as the ability to initiate and operate new businesses.
All this has given rise to two positions or perceptions: first, a position that can be traced to Adam Smith and the classics in general, for whom innovation is a human quality that is manifested in the solution of problems: given the existence of these, someone will perceive and find a solution. Some of these possible solutions fail or can not be adopted. Others will become widely distributed and economic success. This position is currently represented in positions of so-called Austrian school: “The entrepreneur is alert to opportunities that arise in the market”¦ Where the entrepreneur thinks he sees a price gap between resources and their uses, in sight and can exploit a business opportunity. In an environment of uncertainty, the entrepreneur can go wrong in their assumptions”¦ If successful, the implication is that you have found a better use for the resource hitherto undervalued and the market rewards you with benefits, as we know, have a short life. If it fails, it has wasted that resource, and it remains only to endure the loss of their failed performance.”
Others perceive effective innovation depending on factors such as previous: “In our view, innovation is a culture that is based on knowledge of the world that science provides, and allows for a generous side, and get another party, conceptual and technological tools at our disposal, identify problems, find appropriate solutions and be able to transfer these solutions to other contexts and / or other problems. That is, we can create or modify various solutions to bring them into circulation, but they are based on knowledge that has reached its creative phase as a result of accumulated learning and maturation attained by that knowledge.”¯
In other words, if we believe that innovation is to bring an invention to market ”“ “is the process whereby, from an idea, invention or recognition of a need, develops a product, technology or service that is commercially useful to be accepted ”“ “it’s obvious that someone must have done this invention earlier. It can be seen that in the contemporary world everything increasingly depends on developments in education and scientific and technical studies, as described in Entrepreneurs and the economy.
For example, Joel Shulman argues: “A Harvard study claims that Latin America will struggle to move because it is generating a sufficient number of new patents. In the text, the author makes a comparison between Mexico and Singapore 30 years ago. At that time, surpassed the Latin American country to Singapore, but since then has been declining, while Singapore took a strong position against other markets. In short, the argument is that if a country does not develop new patents, then it will be left behind.”¯
However, given the need to generate wealth and jobs in the current economic situation, many countries are beginning to devote efforts to the organizational innovations as a development of general creative potential. This leads to investigate the role and development of SMEs in general calls on the one hand and micro-businesses or startup companies and other associations or self-management. It also has a dimension of seeking economic independence of communities and human development through a social economy that transcends administrative centralization and large companies, both state and private, tend to suffer. That is, this view tries to put the responsibility and control of development in the communities themselves, which, hopefully, produce local solutions based on local knowledge and resources to local problems, as stated in The contributions of entrepreneurs in economy.
Under “education entrepreneurs”¯, Arieu mentioned that most likely the strong emphasis is being given to the dissemination and development of entrepreneurship has its roots in a multiplicity of factors which may include:
– the recognition of a prominent role of small businesses in creating wealth and jobs.
– the significant contribution of new technologies to generate new products and businesses, with the resulting spatial dislocation an important part of economic activity.
– a working life cycles characterized by wage labor, self-employment and unemployment.
– the orientation of economic theories to human factors (human capital) that affect the processes of economic growth and development from such learning processes.
Entrepreneurship as a special kind of human activity, has received legal binding and recognition are drawn into its ranks various categories of the population. Entrepreneurial movement is rallying, buoyant and lobby for their interests in government and administration. That enterprise is able to effectively maneuver the resources appropriate to dispose of the investment, raise production, to fill the consumer market and thus create conditions for improving the welfare of the people and the revival of the former power of the country. But as businesses are actively developing in the field of finance, trade and services, the production is weakly affected. The transformation of the manufacturing sector in the passive object of the business impact has been one of the reasons for the deep socio-economic crisis experienced by many countries. The depth of the crisis faced by the company forced it to intensify the reform on entrepreneurial basis. Exploit the potential of entrepreneurship in these conditions means the most of internal resources and human potential of business organizations, as stated in The contributions of entrepreneurs in economy.
All of the above updates the need for a comprehensive study of the role and business opportunities (along with an active economic activities of the state) as a strategic factor of production development. This approach makes the study of entrepreneurship in the context of economic, political, socio-cultural, spiritual and moral forms of social life. All in all, entrepreneurs can impact the economy by the decisions the implement new businesses in the country, by offering new ideas and possibilities. Positive changes initiated by the entrepreneurs have to be encouraged by the government.