Creation and Development of New Firms - Assignment Example

? Week Discussion Table of Contents Introduction 3 Creation and Development of New Firms 4 Success Rates of Entrepreneurial Activities 4 Global Entrepreneurship in Developing Economies 5 Degree of Risks or Safety of Entrepreneurial Programs 6 Present Entrepreneurs and Innovative Technology 6 Conclusion 7 Introduction An entrepreneur is an individual who arranges and manages the business functions, develops new ideas and bears the ability to take financial risks of the organization as well. In this age of economic volatility and downturn, most of the emerging economies are facing financial distress as well as unemployment problem. Side by side, the trouble of poverty also became highlighted in these emerging economies of the entire world. However, in order to recover from such distressful state, most of the countries, especially the emerging or developing countries are reliant on economic liberalization. Due to such economic shift, most of the emerging economies and the firms of recent age are entirely responsible for economic recovery of the world (Yalcin & Kapu, 2008, p. 32). Due to which, most of these firms offered high concentration over the development of the entrepreneurship programs. Therefore, the importance of entrepreneurship program is highlighted in this assignment and it also focuses on five significant areas: Creation and development of new firms Success rates of entrepreneurial activities Global entrepreneurship in developing economies Degree of risks or safety of entrepreneurial programs Present entrepreneurs and innovative technology Creation and Development of New Firms In recent age, the emerging economies of the world are always trying to develop large number of new firms so as to improve their financial condition. Along with this, it also helps in improving the profit margin and revenue of the firms might also be improved. It also helps in enhancement of the employment rates resulting in upliftment of the living standards of the citizens of the economies. As a result, the reputation of the developing economy increases to a certain extent among other neighboring ones in the entire world. For the above reasons, the rate of entrepreneurship is increasing day by day and thereby improving the prospects of the firms and the employees as well. This is mainly because, the entrepreneurs of recent age are extremely talented and intelligent and comprise of excellent management and leadership skills that are extremely essential to control and operate any business firm or organization in this competitive age. As a result, the level of interaction among the employees and the management is extremely high resulting in invention of varied types of new ideas and facts that might result in betterment of the organization (Yalcin & Kapu, 2008, p. 31). So, the prospect of the entrepreneurship has been increasing and it is resulting in amplification of the rate of development of new firms in the emerging economies. Success Rates of Entrepreneurial Activities As the entrepreneurs of recent age always try to develop and introduce new ideas and information for the betterment of the firm. This is done only after analyzing the situation and the strengths and weaknesses of the firm. By doing so, an entrepreneur might attain get a better analysis of the essential requirements of the firm. On the basis of that, the entrepreneur might develop the plans and the strategies that might lead to its betterment. Along with this, after the plans are finalized, the goals and objectives are also developed after consulting with the other employees of the firm. Then, to attain such objectives, the innovative skills and talents as well as equipments are introduced within the employees of the organization. Therefore, with the coordinated efforts of the employees, equipments and management, the objectives might be surely achieved resulting in success of the organization. Due to which, the working condition of the organization improved resulting in enhancement of the rate of devotion of the employees towards work. This is the main reason of the success of the entrepreneurship activities of recent age. Apart from organizational success, the per capita income rates of the workers also increased resulting in fulfillment of both the primary and secondary rights in an effective way. Moreover, the conditions of the workers are improved, that enhanced their level of reliability and trust of their hearts towards the organization. This leads to organizational and entrepreneurial improvement. Thus, from the above points, it may be depicted that the entrepreneurial activities performed in the organizations of recent age are extremely successful (Low & MacMillan, 1988, p. 22). Global Entrepreneurship in Developing Economies Now a day, maximum extent of the international or global organizations is entering within the markets of emerging or developing economies. This is mainly because, of the huge growth opportunities present within the emerging economies of the world. Other than this, the wage rate of the workers and the rate of innovative equipments are also quite low as compared to foreign countries. Moreover, rate of development is also quite higher in varied developing economies. This acts as the prime factor that attracts large range of global entrepreneurs towards these economies. Degree of Risks or Safety of Entrepreneurial Programs As the entrepreneurs of recent period are extremely talented and skilled, so the degree of risks is extremely low. Most of the entrepreneurs try to implement innovative ideas that might lead to organizational effectiveness such as job rotation programs for the employees. These types of programs are analyzed by the entrepreneurs leading to up-gradation of the underlining skills of the employees. Due to which, their level of performance of the employees are increased resulting in enhancement of the total productivity of the firm or organization. Therefore, from these points, it may be analyzed that he entrepreneurial programs or entrepreneurship programs are safe and secured for the organizations (Cooper & Yin, 2009, p. 21). Present Entrepreneurs and Innovative Technology Maximum extent of the present entrepreneurs is always in desire to implement innovative technologies and machineries so as to improve the production rate of the organizations. Not only this, it is also required to cope up with the changing trends of the economies and to meet the demands of the customers of recent age (Cooper & et al., 2006, p. 9). Moreover, this also helps to present a good working condition to the employees resulting in upliftment of the level of performance and reliability of the workers towards the organization. It is extremely essential for organizational betterment along with employee retention in long run. It is essential for the organizations to sustain in long run. Thus, present entrepreneurs are extremely successful in this age due to the implementation of varied types of innovative technologies and ideas within the firms. Conclusion Conclusively, it may be stated that the present state of entrepreneurship in varied emerging economies is extremely successful and risk free. For this purpose the feasibility and viability of new entrepreneurs or startup firms are increasing day by day in most of emerging or developing economies around the world. References Cooper, A. & et al., 2006. Entrepreneurial Strategies: New Technologies in Emerging Markets. Emerging economies. New York: John Wiley & Sons.Ch. 5. Cooper, A. C. & Yin, X., 2009. Entrepreneurship in Developing Countries. Entrepreneurship programs .New York: John Wiley & Sons. Ch. 3. Low, M.B. & MacMillan, I.C., 1988. Entrepreneurship: past research and future challenges. Journal of Management, 14 (2), pp.139-161. [Online] Available at: http://sfxhosted.exlibrisgroup.com.ezproxy.liv.ac.uk/lpu?title=Journal+of+Management&volume=14&issue=2&spage=139&date=1988 [Accessed: 5th September 2013]. Yalcin, S. & Kapu, H., 2008. Entrepreneurial dimensions in transitional economies: a review of relevant literature and the case of Kyrgyzstan. Journal of Developmental Entrepreneurship, 13 (2), pp.185-204, [Online] Available at: http://sfxhosted.exlibrisgroup.com.ezproxy.liv.ac.uk/lpu?title=Journal+of+Developmental+Entrepreneurship&volume=13&issue=2&spage=185&date=2008 [Accessed: 5th September 2013]. Read More