Entrepreneurship - Assignment Example

?Entrepreneurship Table of Contents Entrepreneurship Table of Contents 2 Introduction 3 Role of Entrepreneur in Economy 4 Entrepreneur and EconomicGrowth 4 Entrepreneurship and Competitiveness 6 Role of Bill Gates in the Economy 7 Contribution to Economic Growth 8 Conclusion 11 References 12 Bibliography 14 Introduction A person who introduces new idea or creation and makes that idea to become successful in the market is known as entrepreneur. Entrepreneurs are risk takers because they develop a new product without assuming the outcome or return. They strive to search for new way by their vision, creative and optimistic qualities. Entrepreneurs are those persons who perceive the prospect to innovate and accomplish the start up of new enterprise (Dallas Fed, n.d.). According to Schumpeter, the following things can be done by an entrepreneur as measures of innovation: Introduce new quality product that is unfamiliar Introduce unique production system that is not experienced so far Establishment of new market where a country has not entered yet Discover new supply source Foundation of new enterprise to create a monopoly position in the market (Mohanty, 2005). Role of Entrepreneur in Economy Entrepreneurs play vital role in economic progression. They help to deal with the common problems of unemployment. In the 20th century, the world had experienced a number of entrepreneurs. However, there are limited numbers of innovating entrepreneurs compared to imitating entrepreneurs. The imitating entrepreneurs help many underdeveloped countries to rise at a rapid speed due to global demand. Thus, an entrepreneur, essentially an innovating entrepreneur, has great importance to balance the global order and vitality of society (Mohanty, 2005). Entrepreneur and Economic Growth There are number of ways that entrepreneurs help in economic growth. Some of them are mentioned below: Capital Creation: Capital creation is the most vital aspect for economic development of a country. There is a need to create capital so that a country gathers huge reserves of machinery, equipment that can increase the production. Entrepreneurs can promote latest skills of human capital by their knowledge which can help to increase the productivity and thus financial growth. Raise the Per Capita Income: The economic growth is calculated by improvement of per capita income of people in a country. It is the entrepreneurs who tribute and increase the economic development by introducing new market or business opportunity in any country. Improve Living Style: By introducing different kinds of organisations, entrepreneurs improve the living standard of people. Their creative products help a common man to live and think in a different way. An entrepreneur invents new devices in a range of designs and models which makes people’s life easier. Economic Liberty: Entrepreneurial activity helps a country to accomplish economic liberty. It helps to reduce the dependability of other country. A technology introduced by an entrepreneur assists a country to produce in mass quantity and avoid using foreign technologies. Entrepreneurs sell to other countries the products and services and saves expensive foreign money for the country. Development of Infrastructure: Often an entrepreneur develops the country’s basic infrastructure such as road, overpass and industrial units which can aid economic development of a country. These establishments can attract investors and many foreign companies to operate business and invest huge money which can augment economic development. Backward and Onward Relationships: An entrepreneur instigates change in the country by backward and onward ways. Entrepreneurs introduce giant plant which creates several subsidiary industries and based on those industries other industries also grow side by side by utilising the raw material produced by the giant plant. Thus, an entrepreneur helps to increase the economic growth (Mohanty, 2005). Entrepreneurship and Competitiveness The entrepreneurial activity differs from one country to the other. In countries such as France, India, Belgium, and Sweden the entrepreneurial action is relatively small in comparison with Australia, South Korea, America and Canada. These countries possess strong entrepreneurs. For example, Bill Gates who is the creator of Microsoft Corporation is one of the top entrepreneurs in the world. The entrepreneurial skills of Steve Jobs, the creator of Apple, can be seen from the designing of various new technological devices. His innovation has changed the way of using technology in many people. Walt Disney, the inventor of famous animation character named Mickey Mouse, is recognised all over the world. Henry Ford, who has invented revolutionised cars with the use of innovative technologies, had introduced the luxurious vehicles by his entrepreneurial skills. These are the famous entrepreneurs of the US whose contributions are great in the economy (Editors, 2011) & (Stel & Et. Al., 2004). Entrepreneurs’ action is connected with rate of unemployment and thus it is important for economic progress. The economic growth is significant at levels of firm, county, business and people. Fig 1: Entrepreneurship and Economic Growth Source: (Carree & Thurik, 2002). Role of Bill Gates in the Economy Bill Gates is one of the top entrepreneurs in the world. He has created Microsoft Corporation in the personal computer segment. In 10 years of establishment of Microsoft it had become a USD 50 billion worth company and made a monopoly position in the computer market. In the year 2010 its net income was accounted as 18.76 billion USD which was 29% more than 2009. Its net revenue has also increased from 58.44 billion USD in the year 2009 to 62.48 billion USD in 2010, a 7% growth. It provides employment opportunities to the USA as well as whole world. In the USA the total employee of Microsoft is 53,855 and in the whole world Microsoft has 89,403 employees in 2011 (Microsoft, 2011). Microsoft also provides employment opportunities for disable employees. It developed caring work environment for disable employees who possess the right skills. In the year 2000, almost 100 physically disabled employees were employed by Microsoft in the US (Microsoft, 2000). Contribution to Economic Growth In the year 2007, Microsoft introduced the ICT (Information and Communication Technology) in Africa with joint collaboration with UNIDO (United Nations Industrial Development Organization). It is one of the entrepreneurial activities of Microsoft to generate business opportunities for small and medium enterprises of Africa. It decided to enter in the computer market segment of the rising market of Africa which can create employment opportunity, improve technological skills and uses of new technology among people. In Burkina Faso, a country in West Africa, Microsoft has invested in ICT training campaign for the social servants. This was a move towards development of economy of that country by the means of providing education and training. This step of Microsoft has been imitated by many developing countries internationally to endorse this type of approach which can deal with the economical problems (Microsoft, 2007). Since the foundation of Windows OS of Microsoft, it has made a revolutionary change in the business. Before the introduction of Windows, the computer operated on Dos model which was quite difficult to access. The introduction of Windows had changed the view of computer and it is one of the prime reasons that majority of people started having their own PC for business use and personal use. It is anticipated that in the end of 2010 almost 7 million people internationally would use the OS (Operating System) of Microsoft. The growth of the use of Windows has far surpassed the expectations of Microsoft and this growth has helped the economy of the world to come out from economic recession. The following figure represents total employment associated to Windows 7 and IT. Figure 2: Comparison of Windows Related Employment and IT Related Employment Source: (Gantz & Et. Al., 2009). Figure 3: Impact of Windows 7 on IT Worldwide Source: (Gantz & Et. Al., 2009). The above figures represent the percentage of Windows 7 in creating employment to be 19% in the year 2010 which is accounted as 7 million and the overall employment rate from 2009–2010 is 55%. Because of the use of windows 7 OS the employment had been expected to increase by 30% i.e. almost 300,000 new employments will be generated (Gantz & Et. Al., 2009). Thus, the impact of Microsoft on economic development is huge. At present, almost the whole world uses the software produced by Microsoft. Conclusion Economic development is a procedure of growing of the per capita income. Entrepreneurs play one of the biggest parts in the economic development. In countries such as America, Australia and Japan the reason for strong economic development is the results of their high entrepreneurial activities. Entrepreneurs of these countries have made the citizens of developing countries conscious about new methods and technologies. It can be seen that passionate entrepreneurs not only explore the resources of a country but they can impact upon the whole world. The entrepreneurial actions depend on the countries business climate, sensitivity, awareness, political system and resources. The low awareness has caused lack of innovative entrepreneurs in developing countries. The economic conditions have lesser impact on entrepreneur involvement. The involvement of entrepreneur can be seen more in those countries where the opportunity is highly favourable than that of the economic condition. The 20th century was recognized as the period of growth. In this century there was less number of innovative entrepreneurs and high number of imitative entrepreneurs who tried to emulate the techniques of others. Lack of these innovative entrepreneurs is one of the main reasons for less competitiveness in developing countries. Thus, there is a need to promote innovation and risk taking in developing countries which can make powerful entrepreneurs to develop creative products or methods and contribute towards economic development. References Carree, M. A. & Thurik, A. R., 2002. The Impact of Entrepreneurship on Economic Growth. Erasmus University Rotterdam. [Online] Available at: http://people.few.eur.nl/thurik/Research/Books/Thurikf.pdf [Accessed June 17, 2011]. Dallas Fed, No Date. Entrepreneurs and the Economy. Federal Reserve Bank of Dellas. [Online] Available at: http://dallasfed.org/educate/everyday/ev3.html [Accessed June 17, 2011]. Editors, F., 2011. The Top Entrepreneurs of the Last 100 Years. Focus Inc. [Online] Available at: http://www.focus.com/fyi/other/top-entrepreneurs-last-100-years/ [Accessed June 17, 2011]. Gantz, J. F. & Et. Al., 2009. The Economic Impact of Microsoft Windows 7. IDC. [Online] Available at: http://www.microsoft.com/presspass/events/wwpc/docs/win7_worldwide.pdf [Accessed June 17, 2011]. Mohanty, S. K., 2005. Fundamentals of Entrepreneurship. PHI Learning Pvt. Ltd. Microsoft, 2011. Facts About Microsoft. Microsoft News Center. [Online] Available at: http://www.microsoft.com/presspass/inside_ms.mspx [Accessed June 17, 2011]. Microsoft, 2007. Microsoft Announces New Partnerships to Drive Economic Growth, Help Build Competitive Africa. Microsoft News Center. [Online] Available at: http://www.microsoft.com/presspass/press/2007/jun07/06-07CompetitiveAfricaPR.mspx [Accessed June 17, 2011]. Microsoft, 2000. Microsoft Recruits, Hires and Accommodates People with Disabilities. Microsoft News Center. [Online] Available at: http://www.microsoft.com/presspass/features/2000/jul00/07-19disabilityemployer.mspx [Accessed June 17, 2011]. Stel, A. V. & Et. Al., 2004. The Effect of Entrepreneurship on National Economic Growth. Scientific Analysis of Entrepreneurship and SMEs. [Online] Available at: http://publishing.eur.nl/ir/repub/asset/9808/EIM20070208013_N200320.pdf [Accessed June 17, 2011]. Bibliography Acs, Z., 2006. How Is Entrepreneurship Good for Economic Growth?. George Mason University. [Online] Available at: http://www.mitpressjournals.org/doi/pdf/10.1162/itgg.2006.1.1.97 [Accessed June 17, 2011]. Read More