(PDF) Entrepreneurship and Regional Development Policies
Added on 2021-06-16
13 Pages3133 Words35 Views
Materials Science and EngineeringPolitical Science
|
|
|
REGIONAL ENTREPRENEURSHIP POLICIES 1Regional Entrepreneurship PoliciesNameInstitution
REGIONAL ENTREPRENEURSHIP POLICIES 2Table of Contents1.Introduction......................................................................... 32.Regional Businessmen............................................................. 33.Regional Governments............................................................ 54.Communities........................................................................ 75.Non-Government Agencies....................................................... 86.Conclusion........................................................................... 10Bibliography............................................................................. 11
REGIONAL ENTREPRENEURSHIP POLICIES 3Regional Entrepreneurship PoliciesIntroductionEntrepreneurship is one of the major drivers of the world economy. It influences regional developments, employment rates, competitiveness, productivity, and regional growth rates. Many regions depend on entrepreneurship for development plans and projects. There is, however, a disparity on the rate at which entrepreneurship influences economy in different regions and countries. For example, chances of a new business surviving in a market depending on various factors and policies of a particular region. The disparity in regional entrepreneurship is brought about by three factors which include: the nature of markets in different regions, the innovation systems available in various regions and cultural beliefs and practices. These factors influence important decisions that entrepreneurs make before starting up new businesses and decisions made during management of existing firms. The three factors have been described as limiting factors to regional economic balance. Therefore, attempts are made to bring a balance through governance and policies. The aim of these laws is to spread risk factors and benefits across all regions in equal measure. Entities targeted by most of these policies include businessmen, regional governments, communities and non-governmental aid agencies. Regional BusinessmenEntrepreneurship refers to the process of starting and managing a business after considering all the risks involved. Businessmen, also known as entrepreneurs, are an integral component of entrepreneurship. They are the people who analyze various business conditions in a given region before venturing (Smallbone and Welter 229). Favorable conditions will attract many businessmen to start up their businesses in a region while harsh conditions will drive them
REGIONAL ENTREPRENEURSHIP POLICIES 4away. To start a business in a region, an entrepreneur will have to look at the existing business factors in that region. Most important regional factors to consider include the market conditions, innovation capability, and place-based cultures. Regional factors can influence decisions of an entrepreneur in a number of ways. First, the nature of a regional market will determine the ease of starting a business or not as well as the scale of a business. A market can be either big or small depending on its composition. For example, a fashion business must consider the population component of the market before venturing. If a region has more young people, then a fashion business is likely to do well. But a market dominated by elderly individuals will not attract a business which sells designer clothes. A decision to start microfinance or banking business also depends on the cash flow rate of a region. A market with a small population will definitely attract fewer entrepreneurs compared to a region with a large population (Fritsch 1928). The second factor is innovation systems available. Every businessman who wants to start a business must fast look at the chances of expansion. If a region has appropriate technology and resources responsible for innovations, thena businessman will prefer to invest in the area. Because resources are unevenly distributed, some regions have fewer entrepreneurs. Finally, the culture of a region is a factor that a businessman must consider before starting up a business (Fritsch and Wyrwich 2001). For example, in a region dominated by Muslims, it will be difficult to run a big business or an alcohol firm becauseof a culture that prohibits Muslims from consuming pork and alcohol. Regional development depends on the businesses available in that region. An area with many business organizations will definitely have infrastructural development. This trend leaves some regions with less favorable conditions undeveloped (Cooke, Asheim, Boschma, Martin, Schwartz and Tdtling 142). Therefore, policies and laws have been formulated to make
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Assignment | Reading Head: MANAGEMENT.lg...
|12
|2605
|11
The Entrepreneurship & Small Business Management Essaylg...
|18
|4144
|31
Introduction to Enterprise and Entrepreneurshiplg...
|12
|3830
|316
Entrepreneurship&Small Business Managementlg...
|13
|3942
|74
Entrepreneurship and Small Business Management Skillslg...
|19
|5250
|363
Types of Entrepreneurial Ventures and their Impact on the Economy | Deskliblg...
|18
|5559
|430