It has also presented in brief the role of an enterprise in the organization and how does it stimulates entrepreneurial learning and development
Many people are encouraged to start their own business, to begin as sole proprietors and become an entrepreneur. According to the Department for Business Innovation & Skills in UK, there are 1,296,905 registered enterprises in UK as of 2008 (SME 2009) Sad to say, many of them are forced to go out of business after two to three years of operation because of failure. Failure rates have been high, and some are due to lack of capital, lack of salesmanship, technical knowledge, and up to date knowledge of production. But whatever technical reasons are there, the ability to manage comes out heavily as an end result. McFarland, (1974, p.61) said that in the United States, anybody who has the resources can start or withdraw a business because this is not controlled by the government. Accordingly, the decision to become an entrepreneur is purely a choice of an individual. McFarland noted that many entrepreneurs go into the field thoroughly unprepared and meet the economic test of survival. Some manage to stay afloat because they do not know how much capital they have been using up and how much liabilities they have incurred. In the end, those who survive are those who have the managerial skills in business.
It is an irony, as MacFarland observed, that many entrepreneurial failures occur during boom times. Reasons for that are the easy credit, high demands for the products and the general optimism on the economy. Because of these, many executives were enticed to go into enterprise business without proper planning, insufficient capital and lack of skills. Eventually, the entrepreneur suffers failure because he failed the test of economic pressures. However, despite these pressures, some firms survive and show an extreme degree of tenacity. An example is Prince Alwaleed Bin Talet, who survived