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Importance of Entrepreneurship - Assignment

   

Added on  2020-12-26

11 Pages3498 Words446 Views
Why is growing the level ofentrepreneurial activity critical to thegrowth and development of theAustralian economy?

INTRODUCTIONEntrepreneur select best alternative in order to establish a business. They perform allactivities that is required to make organisation success and profitable (Kirzner, 2015). Furtherthis project discuss about importance of different entrepreneur activities and their meaning.They critically examine business environment and understand customer’s behaviour andpreferences. Establishing new business has positive impact on the economy of Australia.Entrepreneurship activities contribute in growth and development of the country. It is influencedby various factors like economic factors, social factors, psychological factors and Politicalfactors. Entrepreneur implements policy and strategy in order to effectively utilise resource ofbusiness. This project briefly discuss about importance of entrepreneur activity in growth anddevelopment of Australian economy. Government of Australia promote entrepreneurship inbackward and remote areas in order to increase employment opportunities. MAIN BODYMeaning and importance of entrepreneur activity for AustraliaEntrepreneur is a person who take initiative to start up new business. They areresponsible for all risk associated with business and performs all activities which are requiredfor establishing new business. They initially invest small amount and start up a new business.They alone organise and manage all activities of business. Entrepreneurship is defined as anactivity carried out by individual in order to maximise share of profit. They focus establishingand running a business, which involve high amount of risk (Bullough, Renko and Myatt, 2014).There are various obstacles like lack of funding, economic crisis that entrepreneur face inlaunching of new firm. Entrepreneur select best alternates from the available opportunities. They adapt varioustechnology in their manufacturing process in order to reduce wastage and cost of production.Businessman design products and services on the basis of demands of customers.Entrepreneurship can be defined as an act of being owner or manager of an enterprise. Theycritically examine business environment and understand customers’ behaviour and preferences.Business activities play major role in growth and development of economy. 2

It has been acknowledged that investments in new projects and business is at peakbecause people are finding it profitable (Groenewegen and McFarlane, 2014). Australia hasdeveloped good trading relation which has led to increase in exports. It has experiencedfluctuation in exchange rates, employment and inflation. New ventures has provided job to largenumber of people living in the country. Economy of Australia has biggest threat from chinabecause of fall in prices of commodity. Government of Australia has taken various steps to boostup investments and trade. Foreign direct investment has reduced tax rates, which affectedrevenue of the country.Entrepreneur innovates and modifies business process in order to maximise wealth anincrease productivity. This process is action oriented and it deals with motivating and influencingthe behaviour of individual to accomplish goals of organisation (Shepherd, 2015). Entrepreneuractivities are very important for country economy; some of them are discussed below.Establishing business organisation will create job opportunity for people living in thatarea. Effective workforce is required to carry out various business operations, entrepreneur hireskilled and capable employees. Company organises training and development plans for unskilled and new workers. Thiswill help in developing new skills in individuals. Small sector organisation provides employmentto large part of economy. New venture train and develop workforce and supply it to large and bigindustries (Importance of entrepreneurship activity, 2018). Creating of job opportunities willhelp people in increasing their living standard.New ventures implement different innovative techniques in order to reduce cost of operations.Entrepreneur discovers different approaches and implements them in business process. Neworganisation invests large part of capital in research and development. This will help inimproving quality of products and increase level of satisfaction among customers (Terjesen,Hessels, 2016). Innovative techniques will increase GDP in economy of Australia for exampleentrepreneur provide online facilities to customers. This an innovative technique used byentrepreneur to increase their sale. Online buying and selling of products and services will helpcompanies to ease with their regular transactions, thus growing opportunities for start upbusiness. These type of entrepreneur will enable further growth and development of economy. 3

Entrepreneurial activities have Impact on community development and divide its employmentbase between different small businesses organisation. It provides retail facilities and promoteshigh level of ownership. Business provides employment to people living in remote areas whichhas improved standard of people. Individual now spend maximum part of their income inproviding education. People of community are living high quality and stable life because ofincreased level of enterprises in economy.Entrepreneurial activities are adding in national income of the Australia. They generate largewealth in economy. Existing business may remain restricted to current market situations. Newbusiness will offer good quality and developed products to customers this will increase incomeof business organisation. Entrepreneur may use innovative techniques to create new market andcustomers. This situation will result in maximising wealth and increasing nation income (Spigel,2017). Revenue generation will increase collection of tax and government spending. This willhelp in overall growth and development of the country. Political and economic integration of outsiders entrepreneurship plays an important roleintegrating the new ventures into Australia economy. New organisation provides employment tominorities and women. This will help in improving living standard of people.Entrepreneurial activities Promotes research and development.New business organisationimplement innovative techniques and ideas to manufacture products. This process is evaluatedand monitored with the help of experiments. Government provides funds for research anddevelopment to new business. This help in promoting research and development, which help ingrowth and development of the economy. New entrepreneurs involve new ideas and procedurewith great energy and enthusiasm in order to achieve the goals of business. Entrepreneurial activities Enhance standard of living, people consume large variety ofproducts and services which will help in increasing living standards of people. Market is full ofdifferent types of products and goods. This provides facility to choose from wide range ofproducts. Entrepreneur provides different varieties of products because of innovative techniquesadopted by them. This increase income of people those are employed in new business (Golev andCorder, 2016). Wide variety of products available in market will help in improving livingstandard of country.4

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