CX660006 - Essay || Entrepreneurship, The present study is based on an evaluation of the importance of entrepreneurship in the Australian economy by considering their current economic situation. Further factors that promote or hinder entrepreneurship will also be discussed. The study will be supported by relevant economic theories and examples by considering the literature of previous research scholars. Entrepreneurship in the Australian economy is important to maintain its economic prosperity, and for this, it is necessary to promote entrepreneurship and start-ups. Australian police performed well in boosting entrepreneurship in the country, but very few startups can maintain to grow drastically.
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Essay1 | P a g e
INTRODUCTIONEntrepreneurship can be termed as a set of synchronized activities for establishing abusiness or businesses on own by taking financial risks with the objective to earn sufficientprofits. Entrepreneurship is important for development and growth of the country as it resolvesvarious economic issues and encourages youth for doing something unique to accomplish theirdreams (Drucker, 2014). The present study is based on an evaluation of the importance ofentrepreneurship in the Australian economy by considering their current economic situation.Further factors that promote or hinders entrepreneurship will also be discussed. The study will besupported by relevant economic theories and examples by considering literature of previousresearch scholars. MAIN BODYImportance of entrepreneurship in the Australian economyEntrepreneurship in the Australian economy is important to maintain its economicprosperity, and for this, it is necessary to promote entrepreneurship and start-ups. Australianpolicies performed well in boosting entrepreneurship in the country, but very few startups canmaintain to grow drastically. Countries future depends on the factor that how quickly they areable to adapt the change (Schaper and et al. 2016). Technological and other changes bringinnovation and job opportunities which are necessary for the growth of the individual. Inaccordance with the viewpoint of the commission of the European communities, 2013entrepreneurship means a mindset which is necessary to create and developed economic activitythrough innovation and risk taking. Entrepreneurs play a vital role in the success of the country’s economy because theyunderstand the need and want of the society on the basis of which creates opportunities for othersand themselves also. An Australian report state that between 2006 -2011 startups provided morethan 1.44 full millions full-time jobs in Australia as compared to other firms which had providedonly 400000 full-time jobs (Pisheh and Moghaddam, 2016). It is clearly seen that start-upsprovide 360% more job than other firms. A blend of science, entrepreneurship and creativity isthe path of making Australia more secure and powerful in terms of economic prosperity. Further;2 | P a g e
Entrepreneurship promotes structural change and influences existing firm’s efforts to amend asper new conditions of the market. However; They are unable to make essential internal changesand do not have the ability for innovative destruction, but New business and existing firms canassist firms to get independent from being in the position of locked up. Furthermore,entrepreneurs can make completely cope up with new business and markets which will becomethe engines of future growth processes.In accordance with the study of Kirzner (2015), entrepreneurship performs a critical rolein the growth and development of the economy as it resolves the primary of unemployment. InAustralia, it is said that small business plays a vital role in job creation, so it is necessary to makefavourable policies for encouraging small scale business to grow. There is a link betweenentrepreneurship and jobs creation. In order to boost the capitalist economy, it is essential tomake environment competitive and innovative. Modern entrepreneurs think out of the box whichmakes possible for them to find out the more efficient solution of the complex problem(Bullough, Renko and Myatt, 2014). Economic growth and job creation are related. Some peopleassume that if we grow as an economy than jobs will automatically create, but it is seen in lastseveral years that economy is growing without having an impact on job creation. It is significant to give economic stability to workers by giving good salary and goodworking environment so they can invest pay in themselves and their family. It is predicted by theWorld Bank that the world needs to generate 600 million more jobs as compared to 2005 just tohold employment to working age population ratio steady. 3 | P a g e
Figure 1: Growth expectation of new entrepreneursFigure 1 shows the growth expectation at three levels. First one shows low growthexpectation (0-4) then medium growth expectation (5–19) and the third one shows high growthexpectation (20 or more employees). Only a few entrepreneurs can manage to achieve more than20 or more employees mark. In comparison to another big economy, Australia performs aboveaverage (Galindo and Méndez, 2014).In accordance with the viewpoint of Autio and co-authors (2014) entrepreneurshipimproves productivity and introduces innovation in each sector. There are only two ways toincrease the productivity of the industry either to increase the input in order to get more output orwe can develop innovative ways to get more output in same input (Schaper ed., 2016). Our worldis currently facing many environmental challenges like a side effect of green houses, climatechange, maintaining biodiversity but through innovation in technological and in technologicalareas, it can be fixed. There are lots of social challenges like health, inequalities among otherswhich can be fixed by entrepreneurship innovativeness. Innovativeness raises the living standard of people, and now it plays a vital role indetermining growth and competitiveness. For example - In 1939 a new product named televisionwas introduced, but experts said that television would never overtake radio. They thought peoplehad no time to sit in front of the television to watch something. In the 20th century television4 | P a g e
In conclusion, The present study showcases the vital role played by entrepreneurship in the economy. Entrepreneurs have the same positive effect on both short and long runs in the economy as entrepreneurs drive employment growth by creating new opportunities for jobs. The direct effect of employment is seen from the point of new business that occurs from the creation of new jobs. New businesses can boost up more efficiency and productivity. The tough competition among existing and new industries leads to the continued existence of the fittest. Although the total employment may reduce, new business can boom productivity. Communities and government policies need to ensure to cope with up with the challenges so if one door is closed for an entrepreneur then the second one must open.
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