Question

Entrepreneurship is rewarding for counties, economies, societies and entrepreneurs.
Q1. Why do most countries in the world promote the development of entrepreneurship and innovation? Discuss.
Q2. What do you think are the negative effects of supporting entrepreneurs and new ventures by governments?

Answer 1

Q1. Why do most countries in the world promote the development of entrepreneurship and innovation? Discuss.

1. Countries promote entrepreneurship basically for economic growth. Entrepreneurs bring new and innovative products and services to the market. On one hand, entrepreneurs satisfy the needs of market; while on the other hand, they generate revenue to the government in the form of taxes. This process promotes the growth of economy.

2. Entrepreneurs create jobs in a country. Entrepreneurs who themselves are job seekers covert themselves into job providers. Creation of jobs reduces general unemployment and in the long run promotes growth of a country.

3. Entrepreneurship promotes a sense of competitiveness in the market. Because, Entrepreneurs bring innovation in the industry, an environment of competition is created. Enhanced competition directly results in better quality products.

Q2. What do you think are the negative effects of supporting entrepreneurs and new ventures by governments?

1. Countries have been promoting Entrepreneurship due to its huge number of benefits. To support first generation Entrepreneurs a host of benefits are offered. Large number of relaxations is provided to Entrepreneurs. These benefits results in large scale exploitation of environment. Natural resources are exploited beyond their potential to make use of relaxations provided by the governments.

2. Promotion of Entrepreneurship increases financial burden on a country if Enterprise fails to take off. There are several cases where business ideas failed; it not only puts financial burden on entrepreneur but also on government.

3. Countries have been providing a host of relaxations to the Entrepreneurs. These relaxations are sometimes misused to the extent that Entrepreneurs slip out of government controls and through fraudulent practices, they create a state of monopoly.