Entrepreneurship and Australian Economy

This assignment explores the significant contribution of entrepreneurs to the Australian economy. It delves into how entrepreneurs leverage marketing strategies to stabilize their businesses and highlights the positive impact on Australians' living standards through increased product and service choices. The report critically examines the development and competition within the entrepreneurial landscape in Australia.

INDIVIDUAL REPORT
ON CONTEMPORARY
ISSUE

EXECUTIVE SUMMARY
Developing entrepreneurial activities are leading the environment of business work and
promoting different types of skills and knowledge. The present report was based on …increasing
entrepreneurial activities in across the globe. It discussed the major challenges faced by the
Australian leading entrepreneurs. Increasing activities of entrepreneurs are promoting the
standard of living of Australian Citizens. Further, the competition for retailers is increasing due
to innovation in plans, products, strategies etc. The trend of entrepreneurs has been increased
from past few years as it promoted the advancement of technology and skills. Thus, it outlined
the impact on Australian economy due to rapid increase in digital enterprises and technology. It
has been observed the major challenge to enterprise is when it enhances its idea of expanding its
business From the above analysis it can be recommended that the organisation should focus on
developing flexible working environment which aims at easy adaption of changes according to
advancements. In addition to this there is a vast and rapid development in living standard of
Australian citizens because of increasing choices over products and services. Thus, it evaluated
the view by analysing reflective in which the individual has included both positive and negative
impact of development of and competition of enterprises.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................................................2
INTRODUCTION..........................................................................................................................................................1
MAIN BODY..................................................................................................................................................................1
CONCLUSION...............................................................................................................................................................5
REFERENCES................................................................................................................................................................5
Illustration Index
Illustration 1: Entrepreneurial Process............................................................................................................................3

INTRODUCTION
Increasing change in global economy is leading to growth of different types of Entrepreneurs across the
globe. Rising entrepreneurial activities are heading towards increasing competition in the business world. Increasing
activities demand differentiated skills and knowledge regarding various organisational activities, i.e. marketing,
sales, development, research, survey etc.. Further, the report will evaluate the impact of increasing entrepreneurs on
the existing Australian Enterprises. Thus, the report will outline various factors and measures which are necessary
for entrepreneurs to implement, in order to resist the economy of competition.
MAIN BODY
Increasing entrepreneurial activities are promoting the level and standard of living of Australian Citizens.
These activities are enhancing the market competition, business strategies, consumer demand, technology and
growth alternatives (Drucker,, 2014 ). Moreover, the increasing entrepreneurial activities are contributing to
economic growth and are creating employment opportunities for skilled unemployed individuals of the country. The
increase of entrepreneurs make a major contribution to the following factors:
 Promotes the growth of technology, economy and programmes related to business operation.
 It helps in developing the knowledge regarding organisational competitions and entrepreneurial programs
in schools and universities.
 It helps the country in exposing the talent of young generation ( Kew,Barringer, 2012).
 It helps in boosting the standard of living of people of the people by providing various differentiated
advanced products and services.
The increasing entrepreneurs are developing competition and rivalries in the country which is heading towards
advancement of various factors like, growth, technology etc. Therefore, when the individual plans a start-up it need
to develop various strategies to resist the competitive work of entrepreneurs. The new entrepreneur has to face
several challenges which are described under:
 Finance: The major difficulty for the individuals is to seek for the investors because due to increasing
competition in the economy no investor trust the new start up until and unless the plan is convincing.
Therefore, in order to attract the minds of investors, one should have an innovative plan with profitable
returns. Moreover, an individual need to have abilities to convenience the financier about his skills and
capabilities to resist in the world of competition.
 Marketing strategy: For starting new business, one should use his abilities and skills to attract the customers
towards its products and services. Initially it is difficult for the entrepreneurs to grab vast market share but
by developing activities and promotional events the entrepreneur can to seek the attention of customers
(Bosma and Levie, 2010 Monitor, 2011 ). For instance, taking about the Big ventures like, Mc Donald s,
Aldi etc. are the companies which are very consumer focused and intend on developing products which can
help in satisfying buyers needs and wants on the other and maximizing probability.
 Consumer Awareness: It is important for the new entrepreneur to develop a good customer base in order to
resist the competitive market (Herrington and et.al., 2010). Already existing firm's have a strong consumer
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base and to attract the new customers, the individual need to plan its products and services differently in the
market.
Impact of increasing competition of entrepreneurs
 Increasing entrepreneurial activities have eradicated the system of monopoly in which the market was
limited to one seller of product who had the power products and services according to customers which
demonstrate that it promotes the system of products discrimination but with the increase entrepreneur the
market has turned into perfect competition market were there are various number of buyers for same type
of commodities which enhanced the power of buyers (Santos, 2012 ). Thus, the perfect competition market
has promoted the economic growth of Australia.
 The activities are promoting innovation and creativity among the entrepreneurs which provides consumers
with substitute products. The innovation in goods and services assist the buyers in making choices
according to convenience.
 Provides the opportunities for product development and promotes the awareness about emerging changes.
Beside, the increasing competition in market helps the individuals in grabbing opportunities and enhance the power
to adapt changes quickly. Therefore, the entrepreneurs uses various theories to attain competitive advantage. The
most used entrepreneurial model is as follows:
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 In this the entrepreneurs first aims at seeking profitable opportunities which can help them in attaining
competitive advantage and earning profitable returns which is based on appropriate business plan and
communication. Further, communicating business plan and appropriate information regarding it plays a
vital role in the execution process.
 Secondly the individual will seek for the resources which are cost effective and qualitative which involves
the market survey and demand (Neck and Greene, 2011). Moreover, it is important for to entrepreneur to
capitalize resources in order to take advantage over opportunities which involves exogenous forces.
 Lastly, to implement the business plan after seeking opportunity and capitalizing resources the entrepreneur
need to prepare an efficient team to develop an innovative and creative product according to market
requirement. For executing this, last step the enterprise need to have leadership qualities for guiding team
towards organisational goals.
The model is mostly used by the young entrepreneurs to cope with the market competition as it establishes a step
wise process which helps the entrepreneurs to deal and cope up with market changes. Thus, this model includes all
the necessary skills and steps which can beneficial for the entrepreneur to stabilise its growth in competitive
business environment.
Advantages and limitation of increasing entrepreneurs in Australia are as follows:
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Illustration 1: Entrepreneurial Process
Source: (Timmons, 2012)

Benefits Limitation
It promotes optimum and appropriate utilisation of
economic and environmental resources.
Increasing Entrepreneur has developed the strict policies
and programmes for the business world which is making
hard for the organisation to attain competitive advantage
over each other.
It promotes the increasing efficiency and effectiveness
in the work of enterprise ( Baum, Frese and Baron,
2014).
Limited profits and increasing investment in business
activities.
Provides buyers the opportunity to make choices
according to their strategy of pricing and quality.
Increased substitute for each and every product.
Provides choices and promotes economic development. Increasing entrepreneurial activities promotes unequal
distribution of goods and income.
Entrepreneurs act as tonic for the countries' development as it promotes the start-up of skilled individuals who have
the ability to manage and control risk. The trend of entrepreneurs has been increased from past few years as it
promoted the advancement of technology and skills. Generally, in the Australian economy the major increase has
been seen in digital enterprises. The fastest development in the economy is boomed by the innovation and creation
of the young entrepreneurs.
Adverse effect of increasing of competition on entrepreneurs:
The increase in competition has an ever looking adverse effect on the entrepreneurs at the global level. As
the entrepreneurs are increasing, they are creating more and tougher competition in the market. The cut throat
competition has several adverse effects on the company. The increasing competition is reducing the productivity in
the firms.
I believe that the competition is increasing at fast pace across the globe as with passage of time the number
of competitors are increasing at rapid rate (Delgado, Porter and Stern, 2010). It can be observed that such kind of
things are creating huge challenges for the business firms that are newly opened in the market. This is because when
any entrepreneur open its business there is lack of developed USP and due to this reason they find themselves unable
to compete with rivals. Many times due to all these reasons new start-ups get failed and this cause heavy loss to
entrepreneur. It is observed that entrepreneur usually are risk takers in the business. They take heavy risk in their
business and due to this reason grow business at rapid pace. Many times they take risk but in wrong manner and due
to this reason instead of getting profit in the business face heavy loss. Due to this reason it becomes very important
for entrepreneurs to prepare specific strategy in order to compete with rivals and to maintain existence of business in
environment where already competition is very high.
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 Normal profit : I have noted that the entrepreneur are not able to earn normal profits in the industry. Due to
increased competition the firms are offering products at lower prices which is creating hindrance for the
organisation in their path of earning normal profits. Moreover, the profits earned by certain company are
lower than the industry and therefore those companies are facing threat for survival. Also, I have noticed
that in the current scenario some firms are also facing losses due to lower prices in the company.
 Survival: It has also come to my notice that many firms are finding it hard to survive in the market. The
companies are facing higher degree of pressure to stay in the market as there are less or no profits from the
sale of products and services (Schaltegger and Wagner, 2011). I believe that the entrepreneurs are facing
failures in the industry due to high competition. The survival rate for new start-ups has degraded miserably
in the pastime. The companies which incurred loses in the previous year are failing. I am of the opinion that
the reason behind losses and low profit is the prevailing competition in the market.
 Substitutes: The high number of competitors give rise to large number of substitutes which decrease the
profits for the companies. The consumers get a lot of substitutes to choose from which decrease the revenue
of companies. Every company get lower revenue than they aim and the expenses incurred overweight the
revenue which lead to loss and the companies fail.
 Low morale: High competition give rise lower rate in the profits and the entrepreneurs feel demotivated. I
believe that the cut throat competition held entrepreneur to get low morale as they feel it hard to survive in
the market. Also, the entrepreneur are facing a serious situation of increasing the profits and they are failing
to do so due to low revenue. This decreases the morale of the entrepreneur and their performance decreases
even more.
 Low growth of business : I believe that another challenge that the entrepreneur are facing is the problem of
low rate of growth which effects the business adversely (Von Graevenitz and et.al., 2010). As the low
growth of business creates low opportunities for the business which lead to their failure in the industry.
 Domination in the industry: The companies in the industry are facing a serious problem due to the high
competition. I am of the opinion that the industry is dominated by some big companies which control the
market. This creates threat for the survival of other companies. The prices and other factors of the industry
are controlled by the giants of the industry which decreases opportunities for newer and smaller companies.
Due to lack of opportunities these companies fail in creating revenue.(Light, 2011). Moreover, due the high
competition the revenue created is really low to support the companies which lead to low productivity and
demise of the new entrepreneurs and their start-ups.
CONCLUSION
The report has summarized that the competition among Australian entrepreneurs is increasing which as
turned the Monopoly market into perfect competition. It has analysed has the increasing entrepreneurial activities
are promoting the economic growth and development and the major contribution to Australian economy is by
entrepreneurs. Further, it has evaluated that, it is important for the individuals to identify and make use of marketing
strategies in order to stabilise its business functions. Beside, there is a vast and rapid development in living standard
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of Australian citizens because of increasing choices over products and services. Thus, the report outlined the
reflective in which the individual has critically analysed the development of and competition of enterprises.
REFERENCES
Books and Journals
Barringer, B., 2012. Entrepreneurship: Successfully Launching New Ventures, (2012).
Baum, J.R., Frese, M. and Baron, R.A. eds., 2014. The psychology of entrepreneurship. Psychology Press.
Bosma, N .S. and Levie, J., 2010. Global Entrepreneurship Monitor 2009 Executive Report.
Delgado, M., Porter, M.E. and Stern, S., 2010. Clusters and entrepreneurship. Journal of economic geography.10(4).
pp.495-518.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Herrington and et.al., 2010. Tracking entrepreneurship in South Africa: A GEM perspective. South Africa: Graduate
School of Business, University of Cape Town.
Light, P.C., 2011. The search for social entrepreneurship. Strategic Direction. 27(6).
Monitor, G.E., 2011. Global report. Babson College.
Neck, H.M. and Greene, P.G., 2011. Entrepreneurship education: known worlds and new frontiers. Journal of Small
Business Management. 49(1). pp.55-70.
Santos, F. M., 2012. A positive theory of social entrepreneurship. Journal of business ethics. 111(3). pp.335-351.
Schaltegger, S. and Wagner, M., 2011. Sustainable entrepreneurship and sustainability innovation: categories and
interactions. Business strategy and the environment. 20(4). pp.222-237.
Von Graevenitz, G., Harhoff, D. and Weber, R., 2010. The effects of entrepreneurship education. Journal of
Economic Behavior & Organization. 76(1). pp.90-112.
Online
Timmons 2012. Timmons Model of Enterpreneurial process. [Online]. Available through:
<https://shennajanemadrio.wordpress.com/2012/08/30/timmons-model-of-entrepreneurial-process/>.
[Accessed on 2nd October 2017].
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