The need for entrepreneurship in the 21st century has undergone unprecedented growth. Different scholars have identified several reasons to explain the high rate of growth. Firstly, the increase in global competition has stimulated investors in different economic sectors to focus on developing the competitiveness of their businesses. In a bid to achieve this goal, entrepreneurship stands out as an effective avenue to deal with growth in the level of competition. This aspect emanates from the fact that entrepreneurship fosters creativity and innovativeness, which are key ingredients towards nurturing a strong competitive advantage. Creativity and innovation are very effective in dealing with dynamism.
Secondly, the increment in the degree of uncertainty and the dynamic change in the business environment have also stimulated the need for entrepreneurship. Therefore, to deal with the dynamic and uncertain business environment, investors assume the responsibility of becoming more innovative in their operation to attain a high survival rate.
Taking into account the above issues, entrepreneurship has become a key consideration amongst organizations. Entrepreneurship provides firms with an opportunity to be more explorative, hence contributing to the growth of a high level of business growth. The above changes and opportunities presented in the business environment underline the issues driving the interest in this research.
Evaluating the difference of entrepreneurship between mature and emerging economies
The level of poverty and wealth in developed economies differs as compared to that of emerging economies. The difference lies in the level of entrepreneurship between such economies. In developed economies, entrepreneurship is well developed due to high level of innovation and competitiveness, which allow such countries to experience a high rate of economic growth. Additionally, entrepreneurs in emerging economies face a relatively broad scope of growth compared to entrepreneurs in developed economies. Consequently, the probability of entrepreneurial growth in emerging economies is high. Entrepreneurs in emerging economies can effectively focus on pursuing a portfolio approach aimed at dealing with high market and business risks faced.
Entrepreneurs in emerging economies also face unique circumstances in their operations. Firstly, emerging economies are characterized by lack of well-established and stable markets, which forces entrepreneurs in such countries to brave pervasive opportunities. The competitive threat in emerging economies is relatively low as compared to that in mature economies. Although entrepreneurs in developing economies encounter minimal threat of direct competition, they face a high level of political, economic, and regulatory uncertainties.
Entrepreneurship in developing economies also faces a major challenge emanating from limited financial resources as compared to mature economies. Entrepreneurs in developing economies mainly rely on personal savings as the source of start-up capital. Secondly, the lack of innovativeness amongst entrepreneurs in developing economies lowers the probability of such ventures attaining a high level of growth.
The success of entrepreneurship in both developed and developing economies “depends on the quality of its human capital”. Consequently, entrepreneurs in developed economies appreciate the importance of integrating training to stimulate their entities’ growth potential. On the contrary, entrepreneurs in developing economies have not yet effectively integrated employee training as a key ingredient in their firms’ survival. For entrepreneurship to succeed in developing economies, entrepreneurs must undergo a revolutionary change that will entail the establishment of programs aimed at nurturing the requisite experience and skills.
Benefits of entrepreneurship to emerging economies
A number of benefits are associated with entrepreneurship. Firstly, entrepreneurship has become a central element in the economic growth and development of different countries, which arises from the fact that it necessitates investment in different economic sectors through the establishment of small and medium-sized enterprises. During the 21st century, SMEs contribute a substantial amount to a country’s Gross Domestic Products (GDP). Secondly, nurturing entrepreneurship in developing economies will also contribute to the improvement of the citizens’ living standards.
Public policies that encourage entrepreneurship
To promote entrepreneurship in emerging economies, several public policies should be taken into account. Firstly, a policy on how to enhance entrepreneurial capacity should be formulated by broadening the ability of entrepreneurs to access start-up capital for new entities. The policy should not discriminate on who should access credit finance. Therefore, every entrepreneur in the emerging economies should have an opportunity to access start-up capital despite differences in gender, age, or cultural background. Because the government controls the financial institutions through the Central Bank, it has the responsibility of ensuring that financial institutions nurture an environment whereby it is relatively easy to access credit finance.
Secondly, policies to promote entrepreneurship should also focus on ensuring that long-term social, economic, and political stability and commitment aspects are developed. This move will contribute towards the creation of an environment whereby entrepreneurs can easily identify opportunities from the business environment. Nurturing a high level of stability will contribute towards lowering the level of the country’s risks hence encouraging more investment by entrepreneurs.
Thirdly, a policy focusing on ensuring the creation of strong contact amongst entrepreneurs should be formulated to aid in enhancing entrepreneurial success in emerging economies through sharing of business ideas amongst entrepreneurs. One of the ways through which such contact can be developed is by the involved stakeholders formulating a competition program focusing on innovation.
In order to obtain relevant information, the research will be conducted by conducting a survey aimed at comparing entrepreneurship in developing and emerging economies. The survey will be conducted by incorporating both qualitative and quantitative research design to analyze the data collected from the field effectively. Additionally, both primary and secondary sources of data will be integrated to ensure that the report is effectively enriched.
Significance of the research
The findings of the research will be of great importance in promoting entrepreneurship especially in developing economies. Some of the stakeholders who will find the research important include entrepreneurs, governments, and stakeholders in financial institutions. Additionally, the research will also be beneficial from an academic perspective. This assertion emanates from the fact that the findings of the research will enrich students in appreciating the importance of nurturing entrepreneurship to succeed in their future entrepreneurial endeavors.
Secondly, the report will be of importance by assisting entrepreneurs and other stakeholders in identifying gaps that hinder the growth of entrepreneurship in such countries. Some of the gaps that entrepreneurs and other stakeholders should focus on relate to ensuring ease of capital accessibility to entrepreneurs. Additionally, the findings will also assist entrepreneurs in appreciating the importance of instituting training to enhance the performance of their business entities.
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