NAME: CHIKEYA ISHMAEL
REG. NUMBER: H140505G
ASSIGNMENT: DISCUSS WITH PRACTICAL EXAMPLES TEN FACTORS THAT HAVE LED TO THE GROWTH OF ENTREPRENEURSHIP LECTURER: MAKASI YEAR: 2014
Entrepreneurship is the procedure of starting a business or an organisation. Entrepreneurs are people who have the ability to see and evaluate business opportunities, by gathering necessary resources to ensure success. Entrepreneurship can either be large scale or small scale operations. An entrepreneur uses the available economic resources out of an area of lower productivity to a level that is higher hence produce high yield. In the past decade entrepreneurial growth has been added by a number of factors which are grouped as economic development, culture, and technological development and education categories. The presence of these factors ensures effective entrepreneurial growth.
Availability of capital ensures rapid entrepreneurial growth. Availability of capital gives the power to the entrepreneur to start a business. The entrepreneur can easily buy raw materials, the land, machines to mention a few and combine them to produce goods. With capital, people with ideas to start business cannot have a great barrier to start their business hence they can put their ideas into reality. If capital is plenty it will lead to intraprenuership that is the growth of other subsidiary branches. Due to presence of capital rapid growth in investments occurs for instance, econet wireless present off capital from other company branches such as buddie, econet broadband have financed the company to turn into a large organisation and the capital facilitated other projects such as ecocash.
Availability of suitable labour also influences the growth of entrepreneurship. In different areas there are different kinds of labour hence there the skilled, semi skilled and those who are not skilled. When starting a business it’s good to choose the correct type of labour rather than choosing everyone. There are jobs that need professionals and those that need the uneducated hence quality is better than quantity. The available labour must also be cheap to the entrepreneur so that he or she cannot have lose. furthermore labour must also be near to areas of entrepreneurship for instance Mazda Willowvale Company is near to Rugare and Kambuzuma where there is cheap source of labour composed of skilled and the un-skilled to mention a few. The availability of raw materials also leads to rapid growth of entrepreneurship. Raw materials are very essential to industries that depend on them hence they are into processing. Entrepreneurs have resided their industries nearer to the raw materials so as to reduce transportation cost. For instance ZIMSTEEL Company in Kwekwe is located near Redcliff where iron ores ore mined. Without these raw materials the link between industries is broken hence they lead to fall in entrepreneurship. Also to new entrepreneurs it will be difficult to them to start their business since they fear the shortage of raw materials. Different industries of different levels that are primary, secondary and tertiary industries they won’t be able to exist because they do not have the inputs since they interlink.
Availability of markets also has lead to the growth of entrepreneurship. Entrepreneurs were attracted to competitive markets that are areas with high population and who have great sources of income. In areas that have great population are also associated with great demand of goods since they have a lot to...
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