The Role of the Government in Promoting Entrepreneurship

One of the critical drivers of every nation is entrepreneurship. It entails people’s personal decision of making up the mind to implement a given idea and then handle what it takes for its success. This paper focuses on the various aspects of entrepreneurship, establishing its pros and cons. Also, it discusses the specific actions that the government can do to promote or harm the business. Besides, the report gives an analysis of the various sources of the entrepreneurial information for the company. Further, it analyses the interrelationship between the society, business and the government, and the various aspects that one needs to be an effective entrepreneur.

Pros and Cons of Being an Entrepreneur

Entrepreneurship is a process that entails risk acceptance to start a business. Going for entrepreneurship has both the pros and the cons. Some of the advantages include the control over the company because entrepreneurs become the final decision maker for their own business. Again, entrepreneurship has given flexibility; one can schedule work hours unlike being employed that requires set working hours. Free time can be used for other commitments. Besides, there is the advantage of a reasonable salary, since the income is drawn directly from the efforts put in business or rather the performance of the company financially.

On the other hand, some of the cons of entrepreneurship include the fact that there is no standard salary guaranteed because it is drawn from the success of the business. High profits mean high wage and low benefits means low pay. Stiff competition is another disadvantage in that if it is not coped up with, the business may collapse. Administration of the company can be a disadvantage as one is faced with the burden of making decisions alone (Blank & Dorf, 2012).

Areas where the Government can help the Efforts of the Entrepreneurs

The government can help entrepreneurs by giving them different kinds of financial aids. The support can be through loans and partnership with development partners such as financial institutions. Secondly, the support can be through the reduction of the burdensome regulations on entrepreneurs such as the legal requirements involved in the formation of a business enterprise. Also, the government can help entrepreneurs to access business networks through trade missions and online platforms to link them to the outside world of business. Besides, the support can be through the reduction of tax in favor of the entrepreneurs. Lastly, the assistance can be through the removal of trade barriers such as export restrictions or bans to allow the entrepreneurs to trade freely without limitations (Hornqvist & Leffler, 2014).

Areas where the Government harms Entrepreneurs’ Efforts

There are various ways through which the government can harm the entrepreneurs. Firstly, the harm can be felt through political instability, which makes investors shy away from investing in the nation. Secondly, the harm can come about by imposing high taxes on trade and businesses, thus, scaring away the possible future entrepreneurs (Lackeus et al., 2011). Also, the government’s laxity to provide trade networks or avenues denies entrepreneurs a place to sell items and ideas. Strict and rigid regulations on businesses, legal formalities tend to push investors and entrepreneurs away.

Sources of Inspiration and Resources on Entrepreneurship

One can get inspirations to be an entrepreneur from research on market demands and how they are being met. Market gaps can inspire one to be an entrepreneur. Also, the success stories from the successful entrepreneurs form an excellent source of inspiration. Some of the resources that can provide information on entrepreneurship include business books, articles, and journals, both online and hard copies. Also, the financial institutions can be resourceful because they provide financial support and advice to those aspiring to do business (Amabile & Khaire, 2008).

Impacts of Entrepreneurial business from the Perspective of Business, Government, and Society, Individually

The effects of entrepreneurship from the viewpoint of the company are that it provides competition in the market. The rivalry is mostly faced by the new entrants in the struggle to win customers as well as provide excellent and better services. From the angle of the government, entrepreneurship brings more revenue to run the economy of the nation. The new businesses will be taxed, thus bring an additional source of money to the country. Also, entrepreneurship helps the government to diversify its economic base. On the other hand, the impact of entrepreneurial business on the society is the provision of high-quality products and services enhanced through competition. Again, jobs are created through the practice, thus reducing unemployment. Lastly, the impact of entrepreneurship on the individual is the fact that one gets to be their boss, enjoying the profit and grow rich in the long run.

How the Issues are Inter-related

The business, government, individual and society are interrelated in entrepreneurship. The government regulates the industry through policies and legal requirements. The individuals start businesses which are controlled by the government, while the society benefits from the company through goods and services provided. The future implications of this interrelation are the fact that for the businesses to exist, there must be a regulator which is the government. The society will need the individuals to provide goods and services through companies that they start. Again, as an implication, the individuals will be significant employers than the government because many businesses are on the rise (Krueger, 2007).

What it takes to be an effective and efficient entrepreneur

The effective and efficient entrepreneurs have passion and determination for the business, are confident in their venture, self-directed on business matters, nurture themselves to the company, manage cash well, and they love what they do. The success of a business depends on the availability of funds to run the business, good and supportive business partners, effective sales, business visibility on the market, enough entrepreneurial knowledge of the market, creativity on goods and services, patience on the success of business and risk-taking on valuable ideas.

Some of the factors that lead to failure of business are inadequate funds, ineffective business partners, inefficient sales, high ambitions when getting into the market, reduced marketing skills and giving up quickly due to competition. On the other hand, the effort needed for success include having knowledge and creativity, patience and persistence despite the losses, teamwork spirit, honesty and make networks to enrich your business, and its ideas and have a will to take actions in the industry.  The rewards for these efforts have a thriving business that can survive in tough markets and financial crisis.

References

Amabile, T. & Khaire, M. (2008). Creativity and the role of the leader, Boston, MA, Harvard Business School Publishing.

Blank, S. & Dorf, B. (2012). The startup owner’s manual: the step-by-step guide for building a great company, K&S Ranch, Incorporated.

Hornqvist, M. & Leffler, E. (2014). Fostering an entrepreneurial attitude-challenging in principal leadership. Education+ Training, 56.

Krueger, N. (2007). What lies beneath? The experiential essence of entrepreneurial thinking. Entrepreneurship Theory and Practice, 31, 123-138

Lackeus, M., Lundqvist, M. & Williams-Middleton, K. (2011). Obstacles to Establishing Venture Creation Based Entrepreneurship Education Programs. Nordic Academy of Management Meeting