Role of Entrepreneurs in Economic Development

This report explores the role of entrepreneurs in economic development, focusing on theories, opportunities, characteristics, behavior, and the impact of innovation on growth and sustainability. It emphasizes the importance of understanding the market and meeting customer demands.

BUSINESS

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Theories and Practice...............................................................................................................................3
Opportunities...........................................................................................................................................5
Characteristics, Behavior and Personalities.............................................................................................6
Internal and External Factors...................................................................................................................7
Analysis...................................................................................................................................................7
Impact on the Growth and Sustainability.................................................................................................8
CONCLUSION...........................................................................................................................................9

INTRODUCTION
Businesses play a very important role in the economic factor of any nation therefore to
promote this factor it is very important so that the development of the nation can take place. The
rates of the GDP and employment have a great role because they get better of the company when
there are entrepreneurs who are being promoted in the nation because there will be a lot of
innovative ideas and creativity which will come out and the nation will get a name for itself. The
new market wants more and more of innovations in the product because the demands of the
customers are not being met therefore the promotion of entrepreneurs in the entire world is very
important and the demand for them is also increasing.
The report is going to consist of theories on entrepreneur and innovation, the
opportunities of this type of business in the world, how behavior, personality and characteristics
play a role in the students to become an entrepreneur, factors and the growth of sustainable
innovations, ideas and creative solutions. It is very important to study these factors so that there
is a better understanding of this type of market and why this is so much in demand in today’s
market.
MAIN BODY
Theories and Practice
There is a huge demand of entrepreneurs in the world and to become a successful
entrepreneur it is very important to understand that they have to be unique than the others in the
market only then the entrepreneur will be able to capture the market. There are a lot of risks
which are taken by an entrepreneur and that is very good for the business so bad because it can
turn out to be the way businesses are run by the entrepreneur (Burns and Dewhurst, 2016). There is
a difference between entrepreneurship and innovation which the market needs to understand
which is that the innovation is when there is a change in the product in the market or idea,
services or model of any product is innovation but the person who gets these innovations into the
market opportunity is known as entrepreneurship. The innovation gives birth to an entrepreneur
who will help the economic factors of the nations which are promoting or helping the

entrepreneurs in their own nations. The innovation makes sure that the demand of the products
increase and the overall cost of the product is reduced for the benefit of the company.
Innovation can be classified into two categories which are first category is when there is
new techniques which are used in the company or new methods which are being used so that the
products cost can be reduced like adding new machineries, innovation methods, etc. The second
category would be used to increase the demand of the product which is why the innovation is
taking place in the first place (Hills and Morris, 2018). There is an introduction of new quality and
commodities of good which are going to be added so that the company will be able to increase
the demand of the products they are dealing with so that the customers like the product which
will make the company expand them and penetrate deeper into the market. The market is getting
digitalized which is a great profit for a lot of companies which will make the promotions and
sales of the products even more easily. For any entrepreneur targeting the market through
digitalization is a great advantage and the risks will be lower than they will be otherwise. There
are smaller risks which the company has to take when the company is starting up in the market
and it is later that more investments have to be made for the expansion of the company and more
risky decisions need to be taken. There has to be a strategic plan with the entrepreneur of the
company and the methods the company will be using for capturing the market because no
business is in the market for a small span of time but a long term run.
All the departments of the organization must know about the innovations which will be
taking place in the company because if there is any communication gap then the company will
face a lot of lose and the marketing team will not be able to market the product in the market
which will not attract a lot of customers and the company will not be able to penetrate deeper
into the market (Schaltegger, Lüdeke-Freund and Hansen, 2016). Innovations in any product have to
be after analyzing the customers and their needs and wants so that the innovation can take place
in the right direction and that is a very important factor for the company because the cultural,
social, gender, race, etc can play a major role in the innovation of any product. There are many
products which the customers prefer the old way because they do not want to change and the
progressions and mentality has changed a lot in the past few years and that is making the
companies innovate new ideas and products for meeting the demand of the customers. The level
of awareness and education has increased in the customers and they are aware of the rights they

have for the product so the company has to make sure that the company is providing the
customers with the best of products so that they can grow faster and that will be very helpful for
the customers even. The technology over time has changed and with time is still changing so the
innovations can take place better and faster because of this factor because there is a lot of which
are related to the technological factor which is making the supply and demand increase for the
company. Digitalization has come in the market which is a great advantage for the companies
which are starting up for the long run in the market which is a very good idea for entrepreneurs.
The time consumption in making the products and reaching the demands of the customers has
reduced over time and the technologies have made the companies run better and faster which can
be used by the companies to grow themselves in the market (Perchard and et.al., 2017).
The companies depend on the customers and meeting the needs and supplies of the
customers is very important therefore there are a lot of innovations and new strategies which are
coming up in the market so that the customer’s demands can be met. It is always better to go
with the trends the customers are asking for in the products and the feedbacks of the products
which the company is innovating because that will really help the company to innovate the
product better and make a lot of difference in the market. The decisions in the company are also
made for the benefit of the customers and that is a very important factor because the company
will have to work according to the customers and that is very important so any organization
(Colpan and Jones, 2016). Time management in the organization is also very important because the
demands of the customers can increase and reduce anytime and if the company has to make
profit then they must meet with the demand of the customers when the demands are high and
they should be prepared for the low demands of the customers as well because that will make the
company get a lot of experience in the market. For an entrepreneur the market is a total new
place to explore and the company has to make sure that they are doing their best for the company
but without experience in the market it is very difficult for the entrepreneurs to understand the
market and that can turn out to be a great lose for the company.
Opportunities
The opportunities of the entrepreneur to enter the market in today’s world is that there
will be a lot of support which will be provided by the governments of most of the countries
which will help the entrepreneur to make a place for themselves in the market. The government

of the countries wants to improve the GDP of their own countries therefore the government
wants that there must be businesses which start from a small scale in their own countries which
are different than the other countries so that the customers from around the world would want to
invest in their country. The e-business which has come up in the present time is a very good
factor for the companies to start in any corner of the world because this can make the company
famous in no time and the country will be able to profit from it on a faster rate. Entrepreneurs
have a great opportunity in the market because the customers are always waiting for something
new in the market because they always want a change in the product so that they can be satisfied
with the same product but in a different way which is very important for the entrepreneur’s
company to achieve that factor.
Characteristics, Behavior and Personalities
There Characteristics behavior and the personality an entrepreneur must have for making
the business a success are that he must be confident from outside with the decisions they are
making and they should be ready to take any risk which will be beneficial for the business. The
Students are not going to take the risks which are required from an entrepreneur because those
The communication skills of the entrepreneur should be good because the decisions they are
making have to be told to the employees under them and the communication gap can make the
company have a great lose and entrepreneur is not having a company which is already
established but a company which has just started up which is communication is very important
(Volery and Mazzarol, 2015). The behavior of the entrepreneur should be very professional and
they must have a great knowledge about the market so that they are sure of the decisions they are
making the company and that will be beneficial to the company or not. The students do not have
the right behavior, characteristics and personality of an entrepreneur but that is why they are in
school so that they can develop themselves and make a better person out of them which will help
them to grow in the fields they want to because that is a very important factor for their life’s.
Experience and knowledge about the market plays a very important role in the company
who has just started because there will be new employees who will be hired who will not have so
much of experience of the market and that will not let the company grow (Julien, 2018). The
entrepreneur is the owner of the company and has to make sure that the internal and external
factors of the company are functioning properly which will be beneficial for the company. There

is a lot of pressure on the entrepreneur of the company and the students will not be able to take
so much of pressure on them which will limit the company form growing therefore the person
has to be able to take the pressure and have the right skills for the job.
Internal and External Factors
There are a lot of factors which influence a company from growing and those factors
have to be improved upon so that the company will be able to capture a larger market. The
innovations and new ideas have to come in the market so that the company will be able to make
the changes in the company accordingly (Estrada-Robles, 2016). It is very important to understand
the social and cultural aspects of the area the company is starting the business in because those
factors will influence the products of the company and if the company wants to make a profit
then they will have to innovate the product according to the customers which is very important
and the company has to try to go according to the customers and not try anything new because
they have just entered the market and they will have to set a base for themselves before they start
anything else. Loyal customers will help the company to improve and develop in the market
when the company will ask for the feedbacks from those customers and that will be very
beneficial for the company and that will make the company have a good market for themselves.
The external factors will influence the company but that will come later when the company is
able to make a base for themselves in the market and when the external factors influence the
company that time the company will be able to have a lot of experience in the market and they
will be able to deal with the situations which will come ahead of them. Experience does make a
company have a lot of power and the decisions which will be made will be more appropriate for
the company.
Analysis
There are going to a lot of troubles which are going to be faced by the company in the
start of the business because they will not have much idea of the market and how it runs. The
innovations in the products may also not make a place for themselves in the market which is a
very important factor because the company wants to have an impact in the customers because
they want to have a base in the market as fast as possible which is a very important factor. The
company must first try to understand the market and then the customer’s wants and needs so that
the company will be able to set a supply and demand rate for themselves when the innovation

has to enter the market (Cumming and Zahra, 2016). The prices will also be set after studying the
customer’s of that particular area in which the product is going to be launched and that will be
low or high depending on the GDP of that area. Entrepreneurs who are entering the market have
to make a lot of efforts because they have to understand the needs and the functions of the
market otherwise they will not know how to make decisions in the market. The companies who
are entrepreneurs must have a vision, mission, objectives and a strategy in hand before they enter
the market, thought the strategies can change but the objective, mission, visions and aim of the
company should remain the same. It is very important analyse the market before making a
product enter the market or understand the market before so that they can make the changes in
the product which has been innovated so that if there are any more changes which need to be
added then they can be done before they launch the product (Welter and Gartner, 2016). The
customers have to like the innovation in the product because the innovation is done so that the
customers like it and if they do not then the innovation is done for nothing and the innovation is
not going to be a success.
Impact on the Growth and Sustainability
New ideas and innovations capture a lot of new market for the products and especially for
an entrepreneur it is very important because it will be easier for them to capture the market
easily. There is a need of creative solving the issues and troubles which will come in the
company and because entrepreneur is a new entrance in the market there will be new and better
ideas to solve the troubles in the market which will create a different trend in the market which
the older companies will have to learn. The market keeps changing all the time and the company
which is doing well today may not be able to do so great in the next year because the market
changes with the customers. There have to be new innovations and ideas which have to come up
so that there are more customers which are attracted to the company so that the company will be
able to have a better market for themselves.
There is a lot of entrance of different markets entering the market recently because the
government is supporting them to enter the market but the company should make sure that the
product they have is unique and it cannot be substituted by any other product in the market. It is
very important to have a unique identity of one’s own self in the market so that the customers
can come to look for their product (Audretsch, Belitski and Desai, 2019). The entrepreneurs have to

promote themselves very well and the companies will have to market on a larger scale than
having to produce the product which they have innovated. There has to be sustainable growth of
the company which is entering the market because it is very important for the companies to have
a stable market when they enter the market so that they are motivated to work more and capture a
larger market which will help the company to have a better stability in the market.
CONCLUSION
Entrepreneurs must be promoted in all the countries in the world because it is making the
country grow the GDP and have the problem of unemployment reduce in the country. There is a
lot of uniqueness which can be created because of this factor which can even attract a lot of
tourist in the country and there will be a lot of investment in the country for that unique product.
The market is also getting to learn a lot more from the entrepreneurs which are coming in the
market because they have a fresh mind and a lot of ideas for the products which will help the
other companies also to innovate and put in ideas to have a competitive advantage in the market
which is very important in today’s world because the customers are changing their needs and
demands rapidly which is making the market keep changing and the companies must adapt to the
changes very quickly so that they can get a profit from the market.

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