However, another aspect believes that entrepreneurship has a positive effect on the creation of job opportunities, which thus decreases unemployment rate. Entrepreneurship is also able to improve an economy through the actual products, services and technology that is introduces into a market. These new ideas boost economic growth. Innovation also creates a sense of competition within the market, which allows for the entrepreneurs involved to become creative under pressure. Competition is necessary in order to encourage either existing, or new entrepreneurs to constantly grow and improve, which once again improves the economic situation.
As this goes on, the revenue of the company will increase and thus the company is able to generate profits to shareholders. Besides that, globalization helps companies to access to larger markets hence firms may experience higher demand for their products and leads to a reduction in average production costs. In the general economic area, the globalization is integrating the world into a global market. Globalization can lead business environment to be competitive. Companies have to pay more and more attention on the customer and market orientation where a company focuses on discovering and meeting the needs and wants of its consumers to satisfy the consumers and maintain the customers’ loyalty, having competitive advantages in the market to be outstanding in the market or industry.
Globalization is a small term after all, but has a broader definition acting as a catalyst to progress and growth transforming the world in general. The concept of globalization is not something new for most of the people as this is gaining momentum in today’s era. Globalization has resulted in interrelation and assimilation between world economies and business. Globalization in general has a significant role in advancements of a country and improving the lifestyle of people. In the business world, the benefits of globalization are not just limited to profit maximization, but also provide other advantages equipping business to carve a niche for itself in today’s highly competitive market.
The borrowing concerns will be more keen to become self dependent and will take necessary measures to repay the loan. 7. Creates more employment opportunities: By promoting entrepreneurship, venture capital institutions are encouraging self employment and this will motivate more educated unemployed to take up new ventures which have not been attempted so far. 8. Brings financial viability: Through their assistance, the venture capital institutions not only improve the borrowing concern but create a situation whereby they can raise their own capital through the capital market.
The more people are employed and earning an income, the more GDP increases in a country. As time goes on and people are not losing their jobs, but are being hired then economic growth is most likely to increase. Entrepreneurship Entrepreneurship refers to running a new business, in most cases these are small businesses. People who start these businesses are called entrepreneurs. Entrepreneurs can also be called leaders.
Apart from being a worker, immigrants also play the roles of job creators, taxpayer and consumers. As a consumer, immigrants spend or invest their money in residence and daily necessity which in turn create new jobs and increase the demand for labor. On the other hand, the skills and experience of immigrants and foreigners are required in order to form an open, innovative, and exporting economy (Vince, 2014). Immigrants, who have various kinds of backgrounds and cultures, are beneficial assets for creating original and unique ideas. By establishing new jobs and starting new business, the rising demand of labor and a steady development in the economy could be expected.
Importance of Global Business There are various benefits of the global business. Some of them are as below 2.1 Huge Customers Global business means expanding business globally which helps them to provide connection and link it with other business parties. Burton states, its expansion helps to attract huge customers who enjoy its product and helps to grow faster around the world. Global firms start studying customers need and their preference in order to open its branches in host countries which help them to attract huge customers (Burton, 2017, online). 2.2 Higher Sales, Higher Income According to Anderson, global businesses have their companies in many countries and they distribute goods and services worldwide.
Entrepreneurship influences economic growth in different ways. It is through entrepreneurship that essential advancements enter the business sector prompting new goods or production processes which inevitably expands proficiency through achieving rivalry in the business sector. Thoughts and ideas that rise up out of entrepreneurs build our insight on what buyers may lean toward through presenting varieties of existing goods and services in the business sector. This increases the development of new goods in the business sector as a consequence of the rise in the hours worked and more proficient nature of entrepreneurs as their sales are positively related with their input. Entrepreneurship leads to the production of new products with new quality and worth.
As the world is becoming more dynamic in nature, organizations are now seeking for ways to increase their productivity level as this will in-turn enhance economic growth, lower the rate of unemployment among the teaming population, increase societal development and improve the quality of employees work life in the organization. The case of Nigeria as a growing economy is not left out of this situation. Increased productivity is vital in any economy because it has a serious effect on the living standard of workers and the nation in general, (Amah 2010). Organizations these days think of doing what is right without sacrificing quality with minimal wastage of scare resources within the shortest possible time with least expenditure of inputs (Telsang,