Governments in Many Countries Emphasize the Importance of Entrepreneurship - Coursework Example

MOTIVATION FOR ENTREPRENEURSHIP By Student’s Name Code+ course name Instructor’s Name University Name City, State Introduction Entrepreneurship in a country has been viewed as a very fundamental factor that is crucial in ensuring better and improved living standards of people in countries around the whole world. It is true to note that the advantages of this factor are far reaching hence different countries across the world needs to embrace it without much ado. It is also true to note that most countries struggle to maintain the stability of the country economically due to several factors that may range from wars to political instability. Entrepreneurship always comprises various economic phenomena and is driven by several other factors like technology, markets, and even competition. It has to be noted that entrepreneurship in many countries and especially the countries that are referred to as the developed countries occurred some years back and currently have been trying to maintain that. This, therefore, makes the world a good platform for economic growth for many countries that relate and trade with the stable economies. It is also crucial to note that entrepreneurship is always aimed at ensuring that the country is an open market for all in the country to benefit from. This has been ensured due to many efforts by the governments. Another crucial factor that has led to the entrepreneurship in many countries is the collaboration between countries either in trading or human resource exchange. For instance, the enactment of General Agreement on Tariffs has led into reduced tariffs among trading countries. Governments are the agents of change in a country and especially in the economic sector. This is because; the government provides the best environment for investment by the citizens and another foreign investment. The government provides a good opportunity for the country to have a stable economy through encouraging investment. Governments through regulations provide a level playing ground for the entrepreneurs to invest. It is also true to realize that through the government’s efforts, many entrepreneurs are attracted to a country. The government does through several ways. One of the main ways that it attracts investments is through the provision of security to the people. It is true that no entrepreneurs would be willing to invest their treasure in a country where there is no security (Deakins and Freel 2012). Another way that the government attracts entrepreneurs is through giving tax holidays to the entrepreneurs. The entrepreneurs are allowed some time to settle in without the payment of taxes to allow them trade. In addition at this time, the entrepreneurs use their resources to attract customers and enable them compete fairly with the already established businesses. The government may also provide subsidies to the entrepreneurs to allow them a fair competition with the established businesses in the country. Governmental accounting is a very vital issue when it comes to dealing with it this is so because; accountancy and transparency are required in the attraction of investment. Government accountability is important since it gives an account of the events of the government. It records the governments’ expenditure as well as the revenue that the government gets. This as a result gives the entrepreneurs the confidence to carry on business in the country. The government is involved in many national and international activities that require proper monitoring for them to be successful. Keeping records of finances by a government is to be taken keenly since it is a national issue. Proper and well-kept records help the government in plans and proper arrangement for the projects to be undertaken. Entrepreneurs in a country are always keen to know the development of the country shown in the accounts of the country and how properly they are kept. Budget is one of the plans of the government that outlays the government’s agendas for a given year including the projected expenses and also revenues to be taken from the activities. Through a budget, tax holidays are given, subsidies are allowed and other incentives to the entrepreneurs. A budget well defines the plans of the government and the money to finance the plans. A good government is shown by the ability to make a good and workable budget. In most cases, most of the government revenues are collected through taxes and hence taxation must have a very good structure for it to be implemented. Government expenditure ranges from many issues which are very important to the lives of a human being. The country’s economy is well dictated by how much the country can account for their revenues and expenditure. Unlike personal budgets and those of the private sector, the government budget must be very responsive to cover a number of different groups in the country. This includes elected officials, entrepreneurs, creditors and the citizens themselves (Burns 2013). Developing countries through their governments have ensured increased stability through foreign direct investment. This has enabled the entrepreneurs to invest easily in the developed countries. Many countries have also reduced trade barriers among them to ensure easy flow of goods and economic resources in and out of those countries. It is, therefore, important to note that globalization has also played a role in the entrepreneurship of many countries and hence is very inevitable for the continued economic prowess of the world. There are several reasons why a country would want to attract many entrepreneurs into the country. The reasons may range from the benefits to the local consumers as well as the citizens in general. A good example is where a big company is established in a country. The company will require raw materials for their production which will be provided by the locals. In addition, the company will also require workers for their production process and will look upon the society where they will recruit from. Therefore, the local society will benefit both directly as well as indirectly. In addition, the company may require having electricity, roads, and other infrastructure and share it with the society as a way of giving back to the community. Therefore, the main reasons for the government to attract more entrepreneurs in a country may be as follows: There are various positive effects of entrepreneurship in a country. For instance, it will ensure growth in the country’s per capita GDP. This has been noted by many countries because the countries can trade freely. Both the local entrepreneurs and the foreign entrepreneurs aid in the achievement of a high GDP of a country. A good and strong GDP for a country results into reduced prices for the goods and services. It is worth noting that per capita GDP in a country determines the strength of the economy in a country hence determining the financial stability of the citizens. This shows very well that entrepreneurship is very fundamental for the growth of the relationship among countries as well as the financial stability of the citizens in the country. A good example is China. China has been noted as one of the countries that performed better to ensure that entrepreneurs in the country invest more as well as attracting more investment in the country. It is also known that China has ensured that entrepreneurship in the country is achieved especially in the early 1990s. This in turn ensured that the country registered a higher increase in its per capita income. Entrepreneurship has also ensured that there is a reduction in poverty in the country as well as the whole world. It is noted that the world has always noted an annual decrease in the poverty rate by 5.6% especially when entrepreneurs are attracted to the leading economies of the world. This is very evident because many countries can trade freely as a result of a reduction in trade barriers and tariffs. It is worth noting that many countries that exercise economic globalization can access many types of goods at a very lower price. This has in turn improved living standards of many people living in those countries. For instance, China is one of the countries that have realized a recognizable reduction in the rate of poverty growth by 15% due to improved investment in the country. Poverty levels in Bangladesh also reduced by about 36% in the year 2003 after the government encouraged more entrepreneurs through maintenance of security in many countries. In a nutshell entrepreneurship has ensured a reduction in the rate of poverty in the world. It is also worth noting that entrepreneurship has the effect of bridging the gap between the rich and the poor. This is because the poor can easily get goods from the rich at lower costs. For instance, developing countries have been able to access many goods and services from the developed countries. This has been noted through the movement of technology from the developed countries to the developing countries. Entrepreneurship in a country, therefore, leads to economic globalization in the world that encourages foreign direct investment. For instance, developing countries have been able to keep the same pace with technology as their developed counterparts. For instance, many developing and poor countries are now able to access to computers and mobile phones that are manufactured by the developed countries. This has ensured that there is effective communication in those particular countries that embrace the technology (Carter and Jones-Evans 2012). Free movement of capital has also been seen as one of the fundamental factors as a result of entrepreneurship. This is because the entrepreneurship ensures that there is more cooperation world is one big market where free interaction is very possible. With the free movement of capital, entrepreneurs can invest in any country that they feel like. This is very important since it has the impact on improving the economies of these particular countries. Foreign direct investment will be easily possible if economic globalization is maintained in the world. It must be noted that foreign direct investment would easily improve the rate of investment in the world. This will in turn improve the standards of economic growth in those countries that invest. The flexibility in transactions is also another factor that is worth noting. It is a result of entrepreneurship in a country. The stability of the economy is capable of ensuring that economic transactions are made as fast as possible. This is due to the elimination of barriers that can tend to reduce the rate of making such transactions. Economic stabilization has also resulted into the free movement of information. This has improved communication among different countries. In this ideas can move from one country to another hence improving innovation rate. Companies are also capable of receiving feedbacks from different consumers worldwide. Economic stabilization also has the effect of creating employment opportunities in the country. Entrepreneurs require workers for their enterprises and hence will improve the rate of employment in the country. This is because there is always free movement of workers from one country to another. This means that outsourcing and in sourcing for a human resource will be made very possible. In turn, people can get jobs from different parts of the world. It is also worth noting that the free movement of human resource would ensure easy movement of great ideas from one country to another and hence improving the rate of innovation in the world. It has been noted that export-oriented jobs result into higher pay as compared to import jobs. It is, therefore, fundamental to note that the creation of employment to the jobless people due to free movement of human resources has an effect of improving living standards of those people. Promotion of peace has been always seen one of the outcomes of entrepreneurship. This is especially most of the citizens are occupied in jobs or businesses as well as building the economy. It also provides channels for regional peace. In the regions where there is no peace it is difficult to have entrepreneurship since the energetic people whore are supposed to be involved in building the economy are busy fighting. Regional peace is also maintained. This is because countries that trade together always have good relations which prevent them from the creation of animosity among them. Globalization, therefore, reduces to a great extent the possibilities of the trading countries going to war. Political stability experienced due to entrepreneurship has effect in improvement of the economic growth among those particular countries. It is worth noting that trading nations that enjoys the freedom of reduced tariffs would not wish always to go into war due to fear of reduced trading activities among them. Reduction in the rate of warfare and animosity is likely to improve the living standard of the people. It is, therefore, fundamental to note that economic stabilization has a great role in ensuring that the living standard of the people is improved in the world. The living standards of the people are improved from the presence of money inflows either from the salaries they get from employment or from the business profits which they operate. In addition, if the government provides security in the country people will not fear investing more on their lifestyles and their living standard improving. Entrepreneurship provides skills to the citizens. A successful and well conducted training helps in delivering improvement in individual and team performance which in turn also helps improve the results of the business. Without proper induction the employee’s work is not well put forward and also the internal relationship between employees is very vital for the posting of better results of the organization. Staff induction also helps in staff retention which reduces cost. It also improves the productivity and quality in the organization. This is achieved through good safety in work procedures, proper efficiency and accuracy as well as awesome customer service. It also decreases material and time wastage, costs on maintenance due to mishandling, and also greatly reduces work accident. This will result to more skilful citizens. It is also true to highlight that entrepreneurship has the possibility of improving the environment. This has always been noted for the developed countries. For instance, the developed countries have always embarked on the conservation of their environment as a result of economic globalization. For instance, most of the multinational companies are found in the developed countries. These organizations have always tried to ensure conservation of the environment. It is, therefore, clear and vivid that economic globalization has a great impact on ensuring that the living standard of the people is improved in the whole world. A higher level of competition that is evident in the international market has resulted in reduced prices for the goods. This is because a free market for all allows many companies to compete for the same market. This always results into even lower prices for the goods. It is also fundamental to note that economic globalization has an effect of reducing monopoly in the market. In this case, market participants are faced with the same market conditions hence ensuring favourable competition. This effectively improves the living standards of the people in the world. This is because consumers can get high-quality goods and services at very low prices. On the other hand, it is also fundamental to note that entrepreneurship can have negative effects on the living standard of people in the world. Entrepreneurship can result into unemployment. This is because free movement of firms allows them to operate in any country of their choice. It must be noted that the ultimate reason for business is to make enough profit. Firms will always avoid any operation that is likely to result into higher operation costs. It is evident that most firms always wish to operate in countries with cheap labour. In this case, countries with expensive labour always experience higher levels of unemployment due to inefficient utilization of human resources. In this case, entrepreneurship will result into poor living standard especially for the unemployed people. Entrepreneurship may also result into environment degradation. This is because some entrepreneurs will wish to build more companies in countries without strict environmental rules. This will in turn result into environmental degradation in those particular countries. It may not be very easy to stop such entrepreneurs from constructing the companies in those countries because there is free movement of people, goods, and capital across borders of different countries. It is, therefore, fundamental to note that, even though, entrepreneurship is very good for the growth of world economy, and it must be regulated. Stability is also likely to result in financial problems. The massive investment of capital in some countries may result into overinvestment. These capitals may be rendered unproductive due to excessive investment. In the early 1980s, countries like Brazil and Mexico witnessed excessive investment of capital. These entrepreneurs later withdrew their investments resulting into financial problems in those particular countries (Burns 2011). Free movement of people may also result into higher spread of diseases. This can be very dangerous especially in cases of contagious diseases. In a nutshell, it is true to note that entrepreneurship has both positive and negative effects on the living standards of the people in the world. It must, therefore, be handled with proper care and precaution that it deserves. Conclusion This paper has shown vividly the reason governments encourage entrepreneurship and entrepreneurial activity to gain entrepreneurship. It is very evident that this is crucial as far as improvement of the living standard of the people is concerned. The various importance of entrepreneurship has been shown vividly. Stability has been seen to result into the free market. In this, the world would be seen as one big market where traders freely interact. This is very fundamental to the development of the world economy. Entrepreneurship is also important in ensuring increased investments, peace, and even increased the employment rate. In a nutshell, entrepreneurship is very evident in as far as improvement of the living standards of people in the world is concerned. The paper has also shown the negative impact of stability like: unemployment, environmental degradation, financial problems, and spread of diseases categorically. References Burns, P. (2011) Entrepreneurship and Small Business, 3rd edition, Palgrave MacMillan. Burns, P. (2013) Corporate Entrepreneurship: Innovation and Strategies in large organizations, 3rd edition, Palgrave MacMillan. Carter, S., and Jones-Evans, D. (2012) Enterprise and Small Business, 3rd edition, Prentice Hall, Financial Times. Deakins, D., and Freel, M. (2012). Entrepreneurship and Small Firms, 6th edition. McGraw-Hill. Read More