In goals. In order for an enterprise to

In this essay main discussion is on entrepreneurship and
new venture in the modern world. It is clear that, there are many changes a
world has witnessed influenced by entrepreneurs who established several
companies that have high market share in the global. These companies formed by
entrepreneurs offer services and products to the customers and satisfying their
needs. It is a fact that, economic development in most of countries is
contributed by existence of more entrepreneurs.

Millions of people today enjoy the products and services
from small and medium sizes enterprises as well as large enterprises. Most
companies expanded their services and operations through a knowledge presented
by entrepreneurs. It is possible to achieve success when effective new venture
is applied. It is suggested that, when entrepreneurs consider about their goals
also should think about new venture because has impact in the development of
enterprises.

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There are millions of entrepreneurs in the world from
several countries but few are successful ones. This is because successful
entrepreneurs have common behaviors which distinguish them from failed
entrepreneurs. For instance, successful entrepreneurs must be innovative,
flexible to changes, hard worker, patience, risk taker, never quit, etc. All
these behaviors motivate entrepreneurs continue existing and establish new
things every day.

 

 

Background of entrepreneurship

 

A concept of entrepreneurship is dated back since
centuries ago when some people had invented several concepts that served human
beings and simplified life. Knowledge of entrepreneurship is emphasized more in
the modern world because of competitive advantage in numerous fields. It can be
defined as the process required for designing, launching and running a new
established business. Most entrepreneurs established small business and later
expanded to medium and large enterprises.1 

Entrepreneurship is influenced by the capability and
willingness to establish, organize and manage a business in order to generate
profits and without fearing any risks that may be encountered along the way. It
is well known that, during start up, there are many risks involved in
businesses because of internal and external factors such as lack of funds, lack
of market demand, economic crisis, bad business decisions, unfriendly
government regulations, etc. All these factors sometimes may discourage
entrepreneurs; therefore they may quit, but only strong ones may survive and
continue with their goals. In order for an enterprise to grow and being
successful, it is suggested that entrepreneurs should be managers because they
know well goals of launching business, vision, and expectation in short and
long terms. In order to improve opportunities in business operations, entrepreneurs
are suggested to do the following: develop friendly business plan, if possible
may hire human resources, understanding all possible ways of acquiring material
and financial resources, be a great leader, be responsible for everything
occurring in enterprises whether failure or success, and risk consideration.2  

There are some economists who have written books and
papers in the issue of entrepreneurship and its role in the economy and how it
influence growth of small and medium enterprises. There are several approaches
that can be taken in order to improve entrepreneurship skills that may lead to
innovation and launching of new businesses. Healthy economy has a greater
chance to increase opportunities for entrepreneurs compared to collapsed
economy. This is because healthy economy increases middle income and wealth
people resulted into high purchasing power. Also sometimes some entrepreneurs
are not for profit gain especially who work in charitable organizations and
government institutions.

 

 

 

Entrepreneurship knowledge is required in several fields
such as:3

·        
Establishment of laws and regulations that guide small business;      

·        
Government services and programs;

·        
Entrepreneurship training programs and education;

·        
Non-governmental organizations;

·        
Financing in order to influence angel investments, venture capital
financing, and grants.     

Since 2000s, knowledge of entrepreneurship has focused on
determining and evaluating potential opportunities and how to exploit them in
order to launch new services and products. It is clear that, if entrepreneurship
is implemented as desired may create wealth. When opportunities are utilized
effectively may result into more profits. Some entrepreneurs fail because they
lack enough knowledge in business skills, and management of capital and missed
business opportunities. Successful entrepreneurs need to be aware of market
needs, exploit the opportunity, best management in financial, human and
production resources. There is more knowledge related to political and social
entrepreneurship. New innovation is the key successful of most entrepreneurs in
the globe because they provide products and services that may improve social
well-being and communication.4        

Most entrepreneurs have worked intensively in their working
fields for several years; therefore increased their experience and careers. In
reality there are differences in entrepreneurial activities based on their
creativity and organizations they control. Most entrepreneurs are full-time
workers in their workplaces in order to meet high value and increase
performance as a team. In order to expand business always capital must be
raised either from angel funding or venture capital. There are many benefits
that may be obtained from entrepreneurship.5    

 

 

 

 

 

 

Figure 1: A concept of entrepreneurship

Source: Napkin Finance. (2016). Entrepreneurship Change the World.
Online. Available at: https://napkinfinance.com/napkin/entrepreneur-definition/, accessed 16 January 2018

 

Most entrepreneurs are innovators and designers because
of their tendency of building capability, effective team and management skills
that led to solving several problems in the society and make profits. Effective
entrepreneurship is important in order to reduce uncertainty and solve several
associated risks. It is a great challenge to introduce products or services
which don’t exist in the market because it needs good decision making and
efficiency so as capturing customers. Due to this managers who have entrepreneurship
skills are highly employed because they have high coaching ability. Most
entrepreneurs need advice in order to increase their knowledge and take
responsible measures when comes to decision making.6

Effective communication is emphasized in entrepreneurship
because allows influencing investors and external partners that may help to
venture; therefore growing business and survive in the competition.
Communication is important in order to have better relationship between
enterprises, employees and clients. It is better if entrepreneurs are being
charismatic leaders so as providing vision and mission of enterprises so as
creating a strong team which is effective and well communicating. Successful
entrepreneurs always try to encourage commitment to other employees.7     

There are several theories introduced by economists and
theorists in the communication and negotiation so as influencing entrepreneurs
to have ability in handling effective communication and conflict due to
cultural diversity in their enterprises. Common theories include Communication
Accommodation Theory and Face Negotiation Theory.8

Impact of entrepreneurship in small and
medium enterprises and economic development

 

Many people when they hear about entrepreneur, they conflated
with small business. Major of small and medium enterprises have established by
entrepreneurs whether in ventures or proprietor. The target of entrepreneurship
is to increase innovative products and services as well as increasing sales.
Successful entrepreneurs need to be self-motivated, have better plans, and be
ready to change according to environment and economic situation. Ability to
handle weakness and strengths improve entrepreneurship skills.9           

Figure 2: Needs of small and medium enterprises

Source: Nnadi, C. (2014). Entrepreneurship Development and its Impact
on Small Scale Business Enterprises in Developing Countries: A Nigerian
Experience. Online. Available at: https://www.omicsonline.org/open-access/entrepreneurship-development-and-its-impact-on-small-scale-business-enterprises-in-developing-countries-a-nigerian-experience-2169-026X-3-119.php?aid=36077, accessed 18 January
2018

 

Many people now are interested in the
subject of entrepreneurship due to outsourcing, liberalization and
technological change in enterprises. It seems a gap between marketplace and
science when creating new enterprises can be reduced by using entrepreneurship
skills. There are many new products in the market impacted by entrepreneurial
activities that resulted in wide selection and customers’ satisfaction. More
jobs created in the modern world that resulted into economic development due to
utilization of entrepreneurship. Output increased and many business activities
accomplished and therefore increased wealth and profits. First priority of most
entrepreneurs is satisfying human needs and from that more opportunities
created that may led to making profits. Successful enterprises are established
by entrepreneurs who have entrepreneurial spirit. They are ready to accept
challenge and have high determination on achieving their goals. Entrepreneurship
has many benefits in the society and economy such as increase products variability,
creation of new jobs, increase innovation opportunities, payment of taxes, and
lowering prices.10  

Some of small and medium enterprises
face difficult in initial start up compared to large firms because they limited
capital to pay for employees, production of variety of goods, and inappropriate
industrialization policies. Effectiveness of entrepreneurship differs because
of several factors such as location (nations and regions), level of
enterprises, and entrepreneurship activities. When it is applied in better way
may bring positive impacts on the living standards of the people and economy of
a country. Studies conducted by economists and researchers have found out that
entrepreneurship increase employment, and economic performance.11                                    

Most of successful enterprises that are led by
entrepreneurs increase their size as time progress. Customers have influence in
performance of entrepreneurs because they stimulate growth as demand increases.
Entrepreneurs need to be aware of their rivalries in order to introduce new
innovation and quality products so as capturing market share and increase
competitive advantage. Depending of services and products offered by
enterprises then capital may either grow slowly or rapidly. Production
techniques differ between enterprises because of entrepreneurial activities.
Some countries encourage their entrepreneurs by establishing friendly business
environment so that more enterprises can be established; therefore influence
economic growth.12       

Small and medium enterprises in some countries are given
priority because they create more jobs, and individual wealth compared to large
enterprises. Some countries emphasized on entrepreneurial culture in order to
maximize productivity in local and national scale. More people improve their
financial gain and benefit their countries if they know how to utilize
entrepreneurial skills and consider best factors that may improve production in
their enterprises. Most countries consider entrepreneurs as the engine of
economic growth, technical progress and innovation growth. Innovative thoughts
are needed in the modern world in order to foster development, raise capital,
increase output and income. Entrepreneurship is important because stimulate new
investments and competitive market where more income generated, poverty is
reduced, and cultural diversity reduced.13

Description of new venture

 

New venture is very common in several places in the
modern world due to its importance in business. It can be described as the
global program that aimed to provide services in order to develop small and
medium enterprises for the sake of generating a positive social or
environmental change in the community. A terminology became popular after 1999
and was utilized by some countries known as emerging markets that include
China, Mexico, Brazil, Indonesia, India and Colombia. Since then, new ventures
capture attention of many countries around the globe in order to improve
services and products as well as manage small and medium enterprises. New
ventures support the growth of capital and easy management and utilized by
thousands of enterprises in the world.14  

It is difficult to distinguish between new venture and
entrepreneurship because they depend on each other so as increasing innovation
and technological levels in several aspects that may improve production
activities in enterprises. In order to become a successful venture,
entrepreneur needs to learn some issues such as selection, identifying,
communicating, and description of products and services so that improve
business opportunities. Venture can contribute to entrepreneurs when creating
business design for the sake of increasing competitive advantage. When better
strategies are used in the venture then can increase the chance and
effectiveness of commercialization in provision of new products and services
that are obtained in the marketplace.15 

When entrepreneurs create new ventures, first should be
aware on their insights and skills that can help to identify business
opportunities mainly through research and development. Business model needs to
be effective and a form a venture that can impact in better strategies and
utilization of resources. Venture should be implemented based on agreements
between entrepreneurs, stakeholders, new investors, and other business
participants.16 

 

Figure 3: Process of new venture creation

Source: https://www.researchgate.net/figure/313798202_fig2_Figure-2-The-process-of-new-venture-start-up-creation

New venture in small and medium
enterprises

 

New venture since it was introduced has resulted in
positive and negative consequences as well in business and entrepreneurial
ecosystem. Some enterprises that implemented venture had experienced success in
short and long terms. It is suggested that, before applying venture in
enterprises, firstly entrepreneurs should be aware of nature of their business
and on how they can execute venture. There should be agreements between
entrepreneurs, investors, and employees on nature of the new venture and which
changes can cause in order to reduce challenges. Consideration on proper
information about how ventures can be assessed is important in order to have
better clarification during startup.17    

There are different new ventures in the modern world and
entrepreneurs are free to decide on which one favor them. Common new ventures
are social, traditional and innovative ventures that aimed to create business
value and satisfy customers. Effective entrepreneurs need to examine impact of
new ventures on their enterprises especially in performance outputs. Ventures
in small and medium business are important because they reduce risks, manage
challenging markets, provide technical assistance and new innovative program.
Sometimes new ventures may cause problem in small and medium enterprises that
resulted into lack of management, and risk capital. Some enterprises have
expanded their businesses, creation of more jobs, better provision of services
and products in their local markets after they implement new ventures. Ventures
have supported economic growth in many countries because of success achieved by
small and medium enterprises.18          

 

Figure 4: Pathways to new ventures for entrepreneurs

Source: Leng, N. (2015). Enterprise Creation & Development. Online. Available at: https://www.slideshare.net/gayporkkkkkk/oct-14-ecd-lecture-6-starting-the-business1, accessed 20 January 2018

 

 

 

Conclusion

 

Entrepreneurship is important in the modern world because
it contributes to the development and economic growth. Most of successful
entrepreneurs have established enterprises that operate in their countries and
sometimes abroad as well. Millions of people employed by entrepreneurs and
improved their living standards and income. Governments of numerous countries
collect taxes from businesses operated by entrepreneurs. It is impossible to
mention economic growth without considered contribution of entrepreneurship
specifically in small and medium enterprises.

It is suggested that, friendly regulations and laws that
monitor enterprises should be established in order to increase their
contributions to the economic growth. In emerging markets, small and medium enterprises
contributed a lot to the economic development and reduction of poverty. Entrepreneurship
should be encouraged in order to create innovative society and satisfy needs of
people. Most successful and popular entrepreneurs had started up small businesses
and later they increased their profits and revenues until they expanded to
various countries in the world.

New venture cannot be separated from entrepreneurship
because they share similar knowledge in the business field. Entrepreneurs
should make decision on which new ventures they may implement in their
businesses so as increasing sales in the marketplace. They should choose new
ventures based on their targets.

1
Drucker, P. (2004). Innovation and
Entrepreneurship, SMD, California  

2
Skripak, S. (2016). Entrepreneurship:
Starting a Business, Pamplin College of Business

3
Braunerhjelm, P. (2013). Entrepreneurship,
Innovation and Economic Growth, Swedish Entrepreneurship Forum

4
Pahuja, A. (2015). Introduction to
Entrepreneurship, Research Gate Publishing

5
Needham, K. (2014). Entrepreneurship 101,
Carnegie Mellon University

6
Clack, G. (2017). Principles of
Entrepreneurship, US Department of State

7
Volkmann, C., Tokarski, K., Grunhagen, M. (2017). Basic Principles of Entrepreneurship, Springer International
Publishing AG

8
Burdus, E. (2010). Fundamentals of Entrepreneurship,
The Bucharest Academy of Economics Studies

9
Durowoju, S. (2014). Roles of
Entrepreneurship in Small and Medium Enterprises Development in Nigeria,
Lagos State University

10
Neneh, B. (2011). The Impact of
Entrepreneurial Characteristics and Business Practices on the Long Term
Survival of Small and Medium Enterprises, University of the Free State

11
Munene, B. (2008). Impact of
Entrepreneurial Training on Performance of Micro, Small and Medium Enterprises
in Nakuru Country, Kenyatta University

12
Ramezani, A., Hosseininia, G. (2016). Factors
Influencing Sustainable Entrepreneurship in Small and Medium-Sized Enterprises
in Iran: A Case Study of Food Industry, University of Tehran

13
Tambwe, M. (2015). The Impact of
Entrepreneurship Training on Micro and Small Enterprises (MSES) Performance in
Tanzania: The Case Study of Food Vendors in Ilala District Daressalaam,
College of Business Education

14
Stanford University. (2016). Venture
Opportunity, Concept, and Strategy. Online. Available at: https://web.stanford.edu/group/techventures/resources/TechVentures_Chap1_2e.pdf,
accessed 19 January 2018

15
Vissa, B. (2006). New Business Ventures,
London Business School

16
Ibid 

17
CBC. (2014). Entrepreneurship, Small
Business, and New Venture Creation. Online. Available at: http://www.pearsoncanada.ca/media/highered-showcase/multi-product-showcase/solomon-ch04.pdf,
accessed 20 January 2018

18
Cooper, A. (2016). Strategic Management:
New Ventures and Small Business, Elsevier

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