Summary of Articles
“Infrastructure Spending Has the Maximum Bang for the Buck” (2021)
The article is based on a media interview where Chief Economic adviser Krishnamurthy Subramanian talked to Joe C. Matthew and Rajeev Dubey about economic growth. According to Subramanian, to reduce overall macroeconomic uncertainty in a country, the nation needs to adopt a counter-cyclical physical policy (Dubey and Joe). This measure is because both the economy and the business have vicissitudes and variabilities. He says that when the economy is in good shape, the private sectors will thrive (Dubey and Joe). However, when the economy is not doing well, the free-enterprise industry will also be affected. Therefore, the cyclical fiscal policy dictates that the government steps back in its spending when the economy is good and step in when the economy is unhealthy. This government involvement will help lower the macroeconomic uncertainty, therefore, leading to more significant investments.
Consequently, Subramanian advises the government to scale up spending on infrastructure. If the infrastructure is in good condition, there will be increased private investments leading to improved economic growth. Consequently, he believes that taking debts for infrastructure spending is a wise move the government can make. This is because the returns from the infrastructure developed are greater than the cost of borrowing. Furthermore, the interest rate is far less than the nominal growth rate; therefore, the debt will decrease with time regardless of the country’s Gross Domestic Product’s growth rate. Finally, Subramanian encourages more lavish spending by the government if it requires more remarkable economic development. Moreover, the private sector should be encouraged to embrace innovation to enhance competition in the country’s economy.
LCommerce platform, eSamudaay launches women entrepreneurship program [SME Sector], 2021
This article was published in The Economic Times, a newspaper based in New Delhi in India. The eSamudaay, an online company, launched a women entrepreneurship program in Bangalore town in India. The firm did this float to strengthen women’s entrepreneurship in the country’s rural parts since most women live in poverty. The launch of this entrepreneurship program will be enabling young women to set up independent eCommerce marketplaces. They can use the eCommerce marketplaces to sell some goods and services that they have. The program is set to have a series of cohorts made up of ten women leaders aspiring to become influential eCommerce entrepreneurs in their local towns and countries. As part of ambitious digital programs, the initiative aims to create a platform for over 1000 women LCommerce entrepreneurs across India.
Consequently, the program will afford those chosen four months of incubation, business mentorship by leading entrepreneurs in the country, enhanced accessibility to credit facilities, and free access to software to set up a horizontal marketplace in their locality. eCommerce is an eCommerce system optimized for a town and operated by an independent local company. Furthermore, under this entrepreneurship program, women will own eCommerce platforms in their communities. This will in the end help in creating more employment opportunities for women and members of society in general. Moreover, it will help develop more self-reliant communities and empower other women who will not be under this program. Therefore, the recognition of the benefits that women entrepreneurship has on the economy of the country informed eSamudaay’s decision to come up with this program.
eSamudaay aspires to make local economies digital and self-reliant and to do this, they have recognized the central role women will play to make the aspiration a reality. In January, they launched a digitization program to incubate and digitally empower rural youth and aspiring women entrepreneurs in Karnataka and Chamarajanar in India (ET Online). All these show the efforts of eSamudaay to digitize the local economies and empower rural women and youths economically.
Business Topic Analysis
Macroeconomics, Chapter 1
The stability of a country’s economy depends entirely on the stability of its Macroeconomics. According to the textbook, Macroeconomics’ goals in a country are only three: economic growth, full employment, and price stability (Wade 43). For a country to achieve macroeconomics goals, the government needs to employ both monetary and fiscal policies. Monetary policy refers to actions that increase or decrease the money supply in the economy, while fiscal policy refers to the government’s ability to spend and impose taxes. The more a nation produces, the higher the stand of living. Therefore, Macroeconomics is closely intertwined with economic growth, since it is one of its goals.
The article Infrastructure Has Maximum Bang for The Buck is closely related to the topic of Macroeconomics. Subramanian encourages more spending on the infrastructure by the government to stimulate private investments in a country (Dubey and Joe). Government spending, as already highlighted above as an example of fiscal policy. Consequently, he advises governments to adopt a counter-cyclical approach during this Coronavirus pandemic period to reduce macroeconomic uncertainties. The mere fact that the article talks about economic growth makes it related to the topic in question.
Entrepreneurship Today, Chapter 5
Many a times people talk about the word entrepreneurship but some of the do not really know what the word mean. According to the textbook, entrepreneurship remains a fundamental part of the business system in the whole world (Wade 3). This is because today’s global economy is profitable and rewarding to the companies that are flexible to the changes in the business markets and overly innovative companies. Entrepreneurs establish these companies that are innovative and flexible. Entrepreneurs are people who are not only visionary and creative, but they are also willing to take risks and sacrifice for their ideas. Noteworthy is that most college students always aspire to become entrepreneurs at a certain point later in their careers.
The article ECommerce Platform, ESamudaay Launches Women Entrepreneurship Program is related to this topic of entrepreneurship. It talks about the launch of a women entrepreneurship program by eSamudaay in Bangalore, India. The entrepreneurship program launched in February 2021 is set to afford its beneficiaries business incubation, entrepreneurial mentorship, and enhanced accessibility to credit facilities. The sole purpose of entrepreneurship is to provide employment and improve living standards. This program will empower women of Bangalore economically and help develop self-reliant communities across India.
Business Terms
- Fiscal Policy – This refers to the government’s power of spending and taxation (Wade 43).
- Entrepreneur – is an innovator who starts a company to pursue his or her idea for new products or services (Wade 3)
Personal Impact
After this assignment, I learned a lot of things related to the topics I was researching on. Firstly, I have learned about macroeconomics and entrepreneurship issues that I barely knew before this assignment. Consequently, I have learned how to relate the literature from class notes and the literature obtained from the online libraries and any other library. One thing that stood out for me in the assignment’s components is how to relate the course textbook topics with the articles I have summarized. This is crucial because it helps me gauge my understanding of the topics and how it helps me know how to relate the classwork to real-world situations. I selected these two topics because I am overly interested in entrepreneurship and learning issues related to the country’s economic growth. Generally, this assignment has been an eye-opener to me in matters of entrepreneurship.
Works Cited
Wade, Michael. “Chapter 5: Entrepreneurship: Starting and Managing Your Own Business.” Introduction to Business (Adapted for BAM101), Seneca, 2019.
Dubey, Rajeev, and Mathew, Joe C, “Infrastructural Spending Has Maximum Bang for the Back,” Business Today, 2021. Web.
ET Online. “LCommerce Platform, eSamudaay Launches Women Entrepreneurship Program.” The Economic Times, 2021, Web.