Introduction
The world has undergone a harsh economic slump. The crash is a recession that has not been experienced for decades. This has had an impact on entrepreneurship. Opportunities and challenges have been realized by industrialists due to the economic situation. Small businesses over the years have been known to thrive in uncertain economic situations. Large organizations require large costs to run as opposed to smaller ones. In an economic recession getting capital for large firms can be a huge challenge. The scarcity of finance results in costs cut which affects the profitability of a firm. Employees who are retrenched usually turn to small home based businesses as they require less capital inputs. Small start ups in the home do not have predetermined operating costs. This makes them easier to venture into with less financial risks (Holden1).
Body
Entrepreneurs have had significant impact on economies of countries and regions. However, the current economic situation has had an effect on their work. A mix of opportunities and challenges are presented by the financial state of affairs. To restore the economy entrepreneurs need to have more novelty and create employment. This will largely depend on the policies provided for by the law (Moutray 7). Facebook is an example of a business that has grown due to increased policy development that favored its advancement. Development of the site took little capital inputs but has now emerged into an international social network site (Maharjan 2). The innovations by industrialists can impact the economy when supporting policies encourage the entrepreneur. The acceptance of policy formulation can impact innovations positively or negatively. In the case of taxes, license, and other regulations, they can add to the worries of small business people. The brunt will be felt more especially in these uncertain economic times. The entrepreneur will wish to cut costs, if given the opportunity, as much as possible.
In order to keep up with the changing economic environment, development of skill sets is necessary. Increased skill sets are fundamental to continued growth of innovations and industrialization in the economy. The global economy needs a more revolutionized driving force as opposed to workers. This is a major test that has impacted many economies. In addition, skills production ought to be modern and relevant to economic needs (O’Hara & Webb 3). This will come with a cost which again can be tricky for businesses with the current financial state. Co-operation involving learning institutions and industries is important to support relevant innovations for the economy. Entrepreneurs can be beneficial if they develop innovations that are intended for the needs of the economy. Absence of a link can cause a rift between what is invented and what is required. To avoid this disconnect, a continued involvement is necessary between research institutions and industries (O’Hara & Webb 3).
Break through in expertise advancements will be realized with increased necessity for employment. Novel ideas are being developed to cope with the challenges of the current economic slow down. Technologies are developed to use the available resources more efficiently and effectively. An increase in research and development has led to discovery of resources that are cheaper to use and less damaging to the environment (Moutray 10). Exporting of technology by countries will increase their trade relations. This can be in the form of raw information and/or manufactured goods to foreign regions. In turn, this will have a positive impact on the economy.
Entrepreneurs have been known to take risks. This can only be encouraged by the policy formulators. The law makers normally increase number of incentives especially during economic difficulties. The need for increased economic activity for a nation pushes the entrepreneur to work more. Therefore, the economic climate favors the industrialists to put their ideas to test (Buscombe 2). A call for innovation has been fronted more during these turbulent economic times. A change from the repetitive way of doing business was found to choke the economy. Human population increase comes with a swell in demand for resources. Nations have become dependant on specific resources that encourage cost manipulation. The need to take risks that will develop better economies has been taken reluctantly.
Conclusion
Many entrepreneurs think that in a sluggish economy innovations cannot thrive (Paulsell 1). This is far from the truth. Increased need to find ways of improving life occurs in distress. A number of renowned innovators achieved their success by focusing on their ideas and not on the situation. It is through innovations that there is an increased economic output. Therefore, when the economy is slow it shows there is a need for novelty to speed it up.
All in all, looking at the world economy from days of civilization, economic recessions have always occurred. During these economic slumps, better ways of running economies have emerged. Industrialization has changed more significantly when the world has recovered from a recession. This is evidence that a recession does not mean an end to the global economy.
Entrepreneurs should be encouraged to be more innovative. This can be done by ensuring the policy stumbles are checked. Incentives also drive the innovative mind to work. The available capital resources should also be channeled to more research to improve the way business is done. From an entrepreneur point of view, the opportunities out strip the challenges in this current economic down turn.
Work Cited
Buscombe, Arlene. “Women Entrepreneurs”. Challenges & Opportunities in the 21st Century. International Bulletin – Fall 1997. Web.
Holden, Greg. “Economic Climate Perfect for Passionate Entrepreneurs” Steiner Associates LLC. 2008. Web.
Maharjan, Jay. “Role of entrepreneurship in conceptual economy”. Conceptual economy. 2009. Web.
Moutray, Chad “Looking Ahead: Opportunities and Challenges for Entrepreneurship and Small Business Owners”. Challenges, Opportunities. The Office of Advocacy of the U.S. Small Business Administration. 2008. Web.
O’Hara, Sarah and Webb, Bob. “Challenges and Perspectives for Early Career Researchers during the current economic climate”. Careers Research and Advisory Centre. 2009. Web.
Paulsell, Mary. “Entrepreneurs can turn economic crisis into opportunity”. The Business Times Company. 2008. Web.