Date Posted: 11/21/2017 8:41:44 AM
Posted By: Alambi Membership Level: Gold Total Points: 2017
The Relationship Between The Society and Entrepreneurship and the Likely BenefitsWhile the concept of entrepreneurship has a fairly wide meaning and is majorly subject to one’s own interpretation, it can simply be described as starting a business using the resources available to a person. An entrepreneur will combine the various input factors in a creative way in order to generate value to customers and create wealth.Society can be described as an aggregate of people living together in a community or basically a situation of being in the company of others. The persons that comprise a population associate for various engagements including business.The definitions of the two concepts shows clearly that there is a direct relationship between the two. An entrepreneur needs that society for him to establish a business while the society clearly cannot function without the presence of entrepreneurs. The beauty of entrepreneurship in a society is that as businesses prosper the impact the businesses creates increases. Some of these impact are:An entrepreneur accelerates the economic growth of a society - Entrepreneurship is all about wealth creation for the entrepreneur and for the people that are employed by the venture. As a result, the economy of the local area where the entrepreneurial venture is based is developed. It, also, creates wealth on a national scale for the government in the form of taxation which is then redistributed accordingly to the services and communities in the society that need it the most.Entrepreneurship fosters creativity – An entrepreneur will always come up with creative ways to better the existing technologies such that they result in the production of fairly affordable products for all members of the community. A good example is the energy-saving jikos. Not everyone in the society has the ability to purchase an expensive cooking gas. Energy-saving jikos becomes a more reliable and affordable alternative for them.Entrepreneurship simulates innovation and efficiency in a society – Most entrepreneurs enter into a market successfully thanks to their innovative approach which can be seen either in the services or products they offer or in the way they deliver it. By finding a solution to problems, an entrepreneur can drive innovation in a market and create competition, a theorem that results in better and often more affordable products and services to consumers.Entrepreneurship leads to job creation – The changes in the society always lead to some form of market disruption. This disruption results in the creation of new job fields and hence creation of more jobs. The solutions created by entrepreneurs become a visible means of livelihood for themselves and those of their employees.Entrepreneur provides goods and services needed by the society – An entrepreneur always sees money in people, places and products. One of the major attributes of an entrepreneur is that they have to have a keen eye for opportunities in the society. They will identify a gap and innovatively come up with products or services to cover that gap. Filling this gap enables the society to function. Entrepreneurs are philanthropists – Some of the most successful entrepreneurs are great philanthropists. A successful entrepreneur will always want to give back to the society so as to better the lives of people in the community. Such philanthropic acts include construction of facilities, donations to organizations and sponsorships.Society provides market for products and services provided by the entrepreneur – While the entrepreneur can come up with so many products and services that will amount to nothing if no one can purchase them. An entrepreneur needs the society to purchase whatever they offer for them to survive. The society provides raw materials needed by an entrepreneur – The society provides raw materials to entrepreneurs for production of the goods that the same society needs. An example in a hotel industry, a farmer in the society provides the food inputs they would need such as vegetables, eggs, meat, milk etc. which support the business.Society provides financial support for entrepreneurs – To start an entrepreneurial venture one needs to have startup capital. Most of the times entrepreneurs lack financial capital to kick off. Micro-financial institutions often provides the startup capital essential to support the startup. Entrepreneurs get to sharpen their skills courtesy of education – Sometimes just having a business idea is not enough. One often needs extra knowledge on how to actualize these ideas. The society has various educational institutions that provide lessons that help boost the entrepreneurial skills of a person.The society is responsible for establishing policies that govern the operation of entrepreneurs– A society cannot function without the presence of policies and laws that govern its operation. The government being part of the society, is responsible for creation of policies that foster entrepreneurship. If the government policies are not favorable for the establishment of a business, then entrepreneurship would not prosper.Society provides mentorship for young entrepreneurs – Other established entrepreneurs are part of the society. These have provide a source of mentorship for the entrepreneurs. Those who are experienced and have successfully managed to establish their business ventures can provide guidance and support to the new and aspiring entrepreneurs.Networking – Society provides a network platforms where young people exchange ideas about common problems and issues facing the society. This, also, helps them learn what others are doing elsewhere and to see in what way such projects can be implemented elsewhere. The society is responsible for the establishment of infrastructure used by entrepreneurs – The government being part of the society encourages entrepreneurship by the establishment of infrastructures such as roads, water and electricity. Some of these infrastructure is crucial for the growth and survival of entrepreneurs. Negative Relationship Between Entrepreneurship and SocietyEnvironmental degradation – While entrepreneurship utilizes the local resources, overutilization of the resources can lead to environmental degradation. Also, some of the products that entrepreneurs provide pollute the environment. A good example is the manufacture of plastic bags.Unemployment – When new and innovative products are brought into the market, it puts pressure on the existing markets and since the old products may not be able to compete with the new and innovative products, they end up closing shop. Low patronage – The society which the entrepreneurs have developed the product of services for prefer foreign made items instead of locally manufactured one. This means that what the local entrepreneurs produce may end up lacking the market they expected which, in turn, results in them closing their businesses.Unstable political environment – This directly impacts negatively on the economy. A good example can be drawn from the recent political events in Kenya. Followers of the opposition side of the government held protests in the capital city of Kenya, something that resulted in the disruption of several businesses and the destruction of property. For a startup that got affected with such, it can be quite difficult for them to recover especially if they had obtained a loan as their capital.
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