Essay: Entrepreneurship, Government Support, and Startups

This essay delves into the motivations behind entrepreneurs founding new firms, highlighting their pursuit of innovative ideas, market opportunities, and profit. It acknowledges the high failure rate of startups, attributing it to factors like inadequate market understanding, flawed business models, poor management, and financial constraints. The essay further examines why governments worldwide actively promote startups, emphasizing the creation of new investments, job opportunities, and economic disruption. It underscores the role of startups in fostering local economies, reducing unemployment, and contributing to intellectual and skill development. The essay also references the impact of digital revolution and government support in terms of funds and policies, finally emphasizing the importance of startups in stabilizing economies during global crises.

MANAGEMENT

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Why do entrepreneurs found so many new firms?
This is an era of innovative business. Whenever the entrepreneurs find new ideas or see an
opportunity in the market, they open new firms. An entrepreneur generally sees opportunity,
builds a plan for it, starts the business and manages it with the use of available resources.
This is done for the sake of profit. The needs in the society are changing and this change is
building new opportunities for the market which the entrepreneurs want to convert into the
money. For new and innovative ideas, entrepreneurs are always ready to invest money into it
(Barringer, 2015).
It is not that every time start-up becomes successful rather most of the time it fails because
they are unable to understand the actual need of the market and the problems that are exist in
the market so as to make the start-ups successful. Another reason for it is the fact that only
investment cannot make a venture to be successful but it’s the business model that makes
them successful. It also fails because there is poor management of team or sometimes they
run out finance that can give them a push to their venture. Sometimes there are problems in
the product as they are unable to provide the value to the customers as promised (Feinleib,
2011). Their ideas are easily copied by the big organisation and start a new business with
higher amount of capital and better business model. They also fail as they are unable to
compete in the highly competitive environment.
After so many problems and failure stories, entrepreneurs are still willing to open new firms
because they have a strong desire for achieving something extraordinary and want results that
give value that is not higher. They have new energy to take risks and tolerate ambiguities.
Entrepreneurs sometimes also open firms to resolve the problems existing in the society for
building a community where jobs are created or to change the scenario in the society. The
investments in the new firms have increased after the digital revolution and reach of mobile
technologies and internet facilities in the hand of the people (Hogarth & Karelaia, 2012). This
is because through these mediums entrepreneurs are able to extend their reach in the larger
part of the market and hence can capture large market share. People have become aspirational
where they want to create a lot of wealth which cannot be possible with working in any firm
under someone else.

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Why most of the governments are interested in promoting more start-ups?
All across the globe governments are putting special efforts to open new start-ups. This is
because start-ups bring new opportunity in the economy (Vietnamnews, 2019). The
opportunity of new investments from internal and external sources, the opportunity of
creating disruption in the society, the opportunity of creating new job opportunities are
generated by new start-ups. Since most of the governments are facing challenges in the form
of unemployment and these start-ups are capable of reducing it to some extent. Start-ups give
more employment to the people when compared with the bigger firms. This is because their
business model is poor and utilises more workforce than technology (Burns, 2016). It also
gives support to economy of the nation especially in the form of creating stronger economy at
the local levels. It gives boost to the local economy which helps in the uplifting the living
standards. The push from the government is more on the side of rural areas.
It is also promoted by the government as it gives the scope of opening of new industry which
gives new energy to the GDP and economic environment in the country. This is having
tremendous positive effect on the micro-economy. This also takes out the burden of the
government to be largely dependent on the bigger firms. Start-up also creates a business
environment where the money resides in the country itself rather than concentrating on the
multi-national companies which takes a lot of wealth outside. Entrepreneurship also helps in
creating intellectual environment where new firms starts thinking about the challenges that
society is facing and hence brings products that removes these challenges from the society
(Lesonsky, 2011). It also reduces the burden of the government on skill development as it is
done by the entrepreneurs themselves. Government provide supports in terms of funds and
policies. In the time of global crisis it is the small firms mostly start-ups that help in
stabilising the internal economy. It also protects the GDP of the nation from the external
hiccups in the international economy.

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REFERENCES
Barringer, B. R. (2015). Entrepreneurship: Successfully launching new ventures. Pearson
Education India.
Burns, P. (2016). Entrepreneurship and small business. Palgrave Macmillan Limited.
Feinleib, D. (2011). Why startups fail: and how yours can succeed. Apress.
Hogarth, R. M., & Karelaia, N. (2012). Entrepreneurial success and failure: Confidence and
fallible judgment. Organization Science, 23(6), 1733-1747.
Lesonsky, R. (2011) Why The Government Should Help Young Entrepreneurs Start
Businesses. Retrieved from: https://www.americanexpress.com/en-us/business/trends-
and-insights/articles/why-the-government-should-help-young-entrepreneurs-start-
businesses/
Vietnamnews, 2019. The Government supports innovative startups. Retrieved from:
https://vietnamnews.vn/opinion/484847/the-government-supports-innovative-
startups.html#Gw3h63xu15CHsu6x.97