Market Failures and Imperfections in Entrepreneurship Activity

CO042017846DBM
Business Economics

Table of Contents
INTRODUCTION...........................................................................................................................3
Main Body.......................................................................................................................................3
Several market failures and imperfections which affects Entrepreneurship Activity.................3
Using relevant Examples, explain effect of market failure and imperfection on labour and
financial products........................................................................................................................4
How UK government economic policies can shape business strategies.....................................6
How UK government economic policies shape Business Decisions..........................................7
REFERENCES................................................................................................................................9
Books and Journals:....................................................................................................................9

INTRODUCTION
Sierra Leone is a small nation which has just around seven million people all over there
according to the statics(Hanson, 2020). A department is provided a responsibility to deliver
health care services to the residents of the country which is a government department Ministry of
health and sanitation. Health service system is managed by this department in Sierra Leone. HSS
is considered as a part of public good as every resident has a right to get health care services.
There are market failures and Imperfections which are faced by economy of Sierra Leone which
affects activities of entrepreneurs. They work for a vision which states to deliver well functioned
health system for efficient and high-quality health care which results in socio-economic
development of the country. The services should be of high quality with ease of accessibility,
affordable and equal for all residents of Sierra Leone.
Main Body
Several market failures and imperfections which affects Entrepreneurship Activity
Market Failure refers to a situation where there is an inefficient distribution of Goods and
services in the market. On the other Hand, market imperfection refers to a situation where there
is a competition for share in market due to high barriers on entry and exits, distinguish product
and services and small number of buyers and suppliers. No market can be perfect in practical or
real world. Entrepreneurship activities covers all the activities which are needed to carry out any
business. The major activity which is performed by Entrepreneurs in an organisation is decision
making. The market failures and imperfections affect business in that market directly which
affects activities of entrepreneurs in a business (Hechavarría and Brieger, 2020). According to
the given case study, Market generally fail because of mismanagement in priced system and
other imperfections such as natural monopoly, public goods and many more. The types of market
failures which affect activities of entrepreneurs are elaborated below:
Public Goods: In terms of economics, public goods are goods or services which are
available to all members of a society and consumption by one person does not decrease quantity
available to other person. In case of Health service system which is provided in the case study,
health care services are considered in public goods as they should be available to all members of
society irrespective of any discrimination (Seo and Kim, 2020). These services should be
provided in minimal cost so that members of society can afford them. A situation of market