Entrepreneurship Level in Australia
Added on 2020-10-05
12 Pages3423 Words223 Views
ENTREPRENEURSHIPLEVELINAUSTRALIA
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1Growing the level of entrepreneurial activity critical to the growth and development of theAustralian economy................................................................................................................1Critically evaluate the factors that potentially help and hinder the process of entrepreneurshipin Australia.............................................................................................................................4CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
INTRODUCTIONAustralian economy is the world's largest mixed market, having a GDP of A$1.69 trillionin 2017. The structure of economy of Australia has been shifting over time from manufacturingand agriculture to services. The change in structure leads to a range of factors which consists ofrising demand for services, economic reforms, industrialisation of east Asia and technicalchanges. Apart from this, Australia has other advantages such as; strong population growth, well-educated manpower and a strapping institutional framework. The following essay report willcover critical analysis of level of entrepreneurial activity and its impact on growth anddevelopment of Australian economy (Shahiduzzaman and Alam, 2014). Apart from this, it willcover evaluation of the factors that will help and hinder process of entrepreneurship in Australia. Growing the level of entrepreneurial activity critical to the growth and development of theAustralian economyIn the world, growing level of entrepreneurial activity is encouraging economies of manycountries and also growth of entrepreneurship has also enhanced to some extent.Entrepreneurship refers to setting up a business by undertaking financial risks with the aim ofgrowing, expanding and garnering profit from business. Entrepreneur is the individual who takesinitiative and risk to build or enter into new market through using available resources and skills(Shafiullah and et. al., 2017). Australian economy has a key role in attaining the purpose of World Band & IMF, byimproving shared prosperity globally. Basically entrepreneurship is an activity of developing aneconomy through creative & innovative thinking and by taking risk. There are various aspectsthat economic development involves such as; allocation of limited resources, sustainable growth,changes in economic, political, and social, all these are considered to improve the lives of poorpeople in developing countries. Entrepreneurial activity also has a negative impact on the GDPgrowth of Australian economy. Due to less large firms and lower level of human capital in thiseconomy are the reasons for this negative impact (Jarrett and Anderson 2017). Large firms areessential to make shift from developing to a developed economy as they help in achievingeconomies of scale. Moreover, they also supply wage employment which is more productive andget cheap labourers which help in reducing cost of production and further, company getopportunity to sell their products at lower rates. According to the research, there is a negative1
relationship between economic growth of a country and entrepreneurship (Senarathna and et. al.,2018). Growing the level of entrepreneurial activity has influenced economic growth of Australiaboth negatively and positively. Positive impact is through, “new entry and newness”, andnegative impact is because there are less large firms that contribute to significant growth ofeconomy. The Global Entrepreneurship Monitor (GEM), refer as research project. It is an annualclassification of the national level of entrepreneurial activity in aggregate, diverse countries. Themain indicator used is called Total Early Stage Entrepreneurial Activity (TEA). Entrepreneurshipis a complex process and can be found in a variety of situations. As a result, GEM give anencompassing set of measurements aimed at describing several views of the entrepreneurialactivity of a country. Basically, growing entrepreneurial activities affect Australian economy by introducingnew methods, products, and production processes to the market & by expanding productivitymore widely. Increase in the entrepreneurship, entrepreneurs rises competition for existingbusinesses. As a result, new start-ups formation has an indirect competition intensify effect bypushing establishing firms to improve their performance. According to study, entrepreneurialactivity has a negative correlation with per capita income GDP growth in Australia, itsrelationship with growth in poor countries is also negative (Bosma and et.al., 2016). Asentrepreneurs set and grow their firms, they change the economy and finds wider outcomescontributing to the global sustainable economic growth. Australia has 10.5% of adult populationstarting with a new business as measured by the TEA in 2011. Australian economy is flourishing by entrepreneurial activities as it helps in generatingmore job opportunities for the young population of country. Further, Entrepreneurship are theseedbeds of Innovation they help in supporting innovative activity which further help economyto grow and prosper. It helps in developing backward and regional areas of country as it supportsdevelopment of infrastructure and strong communication network between urban and rural areas.Entrepreneurial activities support wealth creation and proper distribution of it generated amongdifferent classes of Australian economy. It helps in mobilising public wealth and allows peopleto benefit from success of entrepreneurs and growing business. Proper distribution of income hashelped Australia to flourish and create a strong image among other nations of the world (RezaHosseini and et. al., 2018). 2
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Entrepreneurship and Small Business Managementlg...
|21
|4970
|84
International Entrepreneurship & Economic Developmentlg...
|11
|3162
|76
Entrepreneurship and Small Business Managementlg...
|25
|3782
|67
Importance of Entrepreneurship - Assignmentlg...
|11
|3498
|446
Impact of entrepreneurial ventures on the social economylg...
|16
|4894
|409
(Solution) Entrepreneurship Assignment PDFlg...
|12
|3517
|457