Entrepreneurship and Small Business Management

This paper focuses on the role of government in aiding entrepreneurial activity and propagation of small businesses to support overall objective of economic development. Based on this report it has been found that support from the government is extremely crucial for acquiring success through the entrepreneurial activity.
Entrepreneurship is defined as the ability of a business owner to undertake the risk of investing in a new business venture. Globalisation has dramatically reduced this stringent regulatory regime of government. However, the chances of market failure necessitates government’s intervention (Chakravarti, 2005). Moreover, scholars have identified government to provide the perfect environment for the growth of small and micro enterprises. Government can provide stability to the price and currency. It is the authority that enforces property rights which is the primary condition for entrepreneurs to undertake the risk of investment. Entrepreneurs are crucial for industrialisation and innovation (Mousley, 2015). One of the main components of any governmental agenda is that it always incorporates economic development as an important object, specifically for developing countries. This paper emphasises on the role of government in facilitating entrepreneurial activity and propagation of small businesses to support overall objective of economic development.
Entrepreneurship and Small Businesses
In the works of Sikalieh, Mokaya and Namusonge (2012), the concept of entrepreneurship has been defined as the heart of contemporary business framework. Many researchers have identified entrepreneurship as an innovative force that is responsible for creation of wealth in the economy. They are the one undertaking risk in terms of equity and time so that an organisation can provide value to the customers in terms of quality products and services.
The contribution of entrepreneurs as a stimulator of economic growth can be illustrated from the success of Silicon Valley in California. The success of Silicon Valley is accrued to the sound venture capital base and the use of highly skilled labour, who are contributing towards innovation particularly in the technological field. Researchers have identified California’s Silicon Valley as an ideal evidence of a well-functioning ecosystem of entrepreneurs (Valkokari, 2015). This high growth of the entire Silicon Valley owes its success to the financial support from various governmental and non-governmental programs. This had reduced the risk of investing in the new venture and evoked informational transparency (Valkokari, 2015).
Small businesses are identified as the driver of economic growth and they are substantial in providing innovation with greater employment opportunity. Small enterprises offer greater scope for development of new products and provide support to the big businesses. It has been noticed by many scholars that the supply chain incorporates many small firms which led to the birth of the concept of outsourcing (Hatten, 2015).
According to the small business survey 2014, almost 74% of the small businesses are family owned with multi-management feature. They are more significant in the primary sector, retail, construction, etc. In terms of female representation in the SMEs (small and marginal enterprises), almost 18% were managed by single woman and a further 27% of SMEs were found to be run by female and male employees equally (Department for Business Innovation and Skills, 2015).
The government needs to support the growth of small businesses so that they can prosper to become market leaders. Multinational companies (MNCs) like, Nike, Microsoft and Apple were small businesses in their initial years.

Entrepreneurship and Small Business Management

Type: Report
Domain: Entrepreneurship
Words: 2000
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