Can you imagine a country without entrepreneurs? How will new job opportunities be created? Studies have shown that innovation is mainly driven by entrepreneur’s .Their determination in daily activities impact billions of lives while creating employment opportunities which is at the core of economic growth and development. To support their mission, entrepreneurs normally craft a brand, culture and talent management approach. This help them focus on rigorous defined set of metrics that are value based which points them to the required direction. Even so, there are other external factors which drives the spirit of entrepreneurship as explained below.
Entrepreneurship heavily depends on communication and transportation. Good infrastructure facilities not only enables market expansion but also extends the horizons of the business. To paint a picture, think of it this way. There are two enterprises, A and B. One is the rural while the other is in the urban where transport and communication networks are well developed. How do you think the two compare in terms of growth? Which one will have a wider market?
The enterprise in the rural area will find it very difficult to expand its market since it will not readily transport raw materials to the industry and finished products to the customers. Enterprise A, which is in the rural will not readily expand because with lack of proper communication, it cannot establish other branches. Enterprise B on the other hand will readily expand and start competing with already established companies because it has wide avenues for marketing including social media; where one can buy YouTube likes. So to encourage entrepreneurship, the government should ensure proper infrastructure is developed.
Market and marketing activities plays a key role in entrepreneurship. Imagine an enterprise without a market for its goods? Entrepreneurship isn’t all about making goods .It involves making goods which customers are willing and able to buy .As an entrepreneur, you are expected to have thorough knowledge of the market and marketing techniques so that are can easily compete with your peers. Marketing always makes the difference between successful and unsuccessful entrepreneurs.
3. Government policies
Government activities significantly affect operation of entrepreneurs. Two countries, one having a stable political environment while the other having very tensed political environment cannot compare when it comes to entrepreneurial activities. The one having stable politician conditions enables easy operation of activities such as transportation of raw material and finished good s to the required destinations. Moreover, rate of taxation also takes the cookie when it comes to activities of entrepreneurs.
In the US for instance, rate of taxation for small business is very low as compared to developing countries such as Kenya; in Kenya, small businesses are taxed at the rate of 35% while in US, its only 21%.This therefore contributes to the higher number of new ventures in Silicon Valley. The government Kenya therefore moderate the rate of taxation for new ventures so that they may find time to stabilize. This can also be achieved by offering tax free periods to entrepreneurs such as; as tax free period of 7 years for new ventures .This will encourage other entrepreneurs to dive into it.
Have you ever asked any entrepreneur about the processes involved in starting a new business? There are a lot of bureaucracy in government offices and institutions. While starting a business should just be a direct process where you go to the website, download the forms, fill and return to the officials, this is not the case.
Some of the potential entrepreneurs lose hope along the way and get out it. The process, more so in developing countries involve going from one office to the other trying to persuade the government official to help in filling the forms. The government should have website where any person who want to start a business can just log in and get their forms. Moreover, in rural areas, it should have officers who understand the needs of the entrepreneurs back there because, most of them are not educated.
Are you an entrepreneur? Are you considering starting any business? Are there factors which are the cornerstone to entrepreneurship in your area? Now, while entrepreneurship is heavily pegged on individual skills, these factors can only do so much in promoting it. All of us can contribute in one way or another towards it.