Automobile companies spend their time to improving the total quality of their products. Bankers tried their best to bigger banks with global presence. Media companies aggressively reaching out at new markets with new vigor. Telecom companies are buying out stakes in far away markets to gain more strength. In such a scenario competitive strength is the crucial word. The entrepreneurs understand the increasing pressure on them in this global business scenario. So they are improving their quality of the product and service to face the competition ahead. Technology has played a major role in deciding competitive strength. Cutting across sector all business units are deliberately and seriously vying options to improve their technology. Here comes the importance of interdependence.
People everywhere want goods and services. Goods are tangible items such as books, cars, carrots, paper clips, and shirts. Services are activities that people want done for them, such as haircuts, car repairs, teaching, or housecleaning. Fortunately, every society is endowed with resources which can be used to provide many of these goods and services. These resources, which economists call productive resources, are usually classified into three groups such as land, labour and capital.
He says that while land refers to natural resources, labour is human work and capital is physical resources. While productive resources are limited but individuals want unlimited goods and services from limited resources. This gap between production and demand creates scarcity of commodities Entrepreneurs are those who address this scarcity and provide goods and services. The entrepreneur purchases scarce productive resources, and then organizes the production of a particular good or service. (Harlan R Day, Economics and Entrepreneur, Indiana Department Of Education, Center for School Improvement and Performance, Office of School Assistance, 1991)
The main goal of the entrepreneur is to make Profit from his products or services. To become a successful entrepreneur need to understand his customers needs. This has necessitated more cautious approach from the entrepreneur. The entrepreneur has to choose carefully scarce productive resources Resources used to produce one particular good or service cannot be used to produce another. The true cost of using a resource is the best alternative use for that resource. Economists call this best alternative use of the opportunity (Harlan R Day, Economics and Entrepreneur, Indiana Department Of Education, Center for School Improvement and Performance, Office of School Assistance, 1991)
Recently entrepreneurship has been modeled explicitly as a form of human capital accumulation usually linked to the long run size of the firm (Bates 1990, Iyigun and Owen 1998, Otani 1996). It was also said that the availability of external financing is a crucial determinant of the amount of entrepreneurial activity in a community (Evans and Jovanovic 1989, Evans and Leighton 1989, Kihlstrom and Laffont 1979).
But in the today's context, there have been drastic changes on the role of business. Though profit is continued to be the driving force for entrepreneurs and enterprises, the way of production and services have changed in both concept and meaning. It is