An entrepreneur is an individual who creates a new business, is commonly seen as an innovator, they play a key role in any economy, using the skills and initiative necessary to anticipate needs (Hayes, 2019). Entrepreneurs are frequently seen as national assets to be cultivated and motivated, their innovations may improve standards of living, and in addition to creating wealth with entrepreneurial ventures, they also create jobs and contribute to a growing economy (Seth, 2019). Increased employment and higher earnings contribute to a better national income in the form of higher tax revenue and higher government spending (Harrison, 2018). Regions with a higher level of entrepreneurship capital show higher levels of output and productivity, while those lacking entrepreneurship capital have a tendency to generate lower levels of output and productivity (Baijal, 2016).
Entrepreneurship is the route to freedom, wealth and everlasting happiness, the truth is that it can be for some people. For others, entrepreneurship brings stress, uncertainty, financial pressure, and relationship breakdowns. There is no guarantee of success with entrepreneurship. In fact, we know that despite the money, sweat, and tears invested in them by their founders, start-ups have alarmingly high failure rates (Percy, 2019).
Nine out of ten startups will fail. This is a hard and bleak truth, but one that you’d do well to meditate on. Entrepreneurs may even want to write their failure post mortem before they launch their business (Patel, 2015).
CB Insights recently parsed 101 post-mortem essays by startup founders to pinpoint the reasons they believe their company failed. The company crunched the numbers to reveal that the number one reason for failure, cited by 42% of polled startups, is the lack of a market need for their product (Griffith, 2014).
To motivate and preserve entrepreneurship, first of all, the formation of entrepreneurial activity needs to be a government priority. Ensure all industry sectors are considered not just high tech, encourage growth across all industry sectors including low, mid and high-tech firms (Mazzarol, 2014).
Improve entrepreneurship education, learning from successful social entrepreneurs, researchers, business owners, startup founders, and researchers.
In a global economy plagued by high levels of unemployment, nothing would be better than helping students launch their own businesses. Universities can work in partnership with student entrepreneurs and institutions such as the Small Business Administration to conduct market research, obtain financing, and create viable businesses (Ashoka, 2014).
The first solution is that government ministers play a critical role in fostering enterprise and innovation. Their role is to direct the government departments and agencies to focus on the problem and develop effective policies, such as the protection of intellectual property, is important to promote innovation by protecting ideas. A minister who has a good understanding of what entrepreneurial ecosystems are, how they form and the role and limitations of government policy is well-placed to generate more effective outcomes (Mazzarol, 2014).
If innovators are not protected legally then they are least likely to share their ideas or give them the opportunity to grow. Entrepreneurs will not be willing to take the risk of allowing their solutions/innovations/ideas to develop if they fear that they will be appropriated (Mbazo, 2017).
The second solution is to improve the way people are learning about entrepreneurship, focusing on the best ways to improve their skills, such as case studies an effective method to spur student’s curiosity, putting them face to face with real life business situations. By studying past or present corporate success stories, students can dig deeper into processes and procedures that executives follow to make decisions (Ashoka, 2014).
Invite Business Executives to Deliver Lectures. Some institutions, like the Kellogg School of Management, have found new ways to make entrepreneurship teaching more engaging, vibrant, and effective. They occasionally invite business executives and ask them to teach a full course, make a presentation, or share their experiences with students. Such initiatives have produced excellent results so far, because students can quickly learn and grasp real-world insight that tomes and tomes of business literature might not deliver so pointedly. (Ashoka, 2014).
Nowadays, global business changes at such a stunning pace, entry level professionals barely have time to acclimate themselves to a new company, a new competitive environment, or new operational requirements. The challenges faced by young workers include lack of experience, a complex corporate world, and business education that is too theoretical and out of sync with companies’ day-to-day needs. (Ashoka, 2014).
The third solution is that a major challenge that entrepreneurs face is the access to capital and investment. Governments can assist in this area by encouraging local banks to work with start-ups and small business by providing loans or investment. Government can offer state loans that target small-business, start-ups or female entrepreneurs. These are incentives that encourage entrepreneurship within the ecosystem (Mbazo, 2017).
It is important for governments to continually reform their tax policies so that they promote small business growth. A country’s tax code can be key in promoting small business. Reducing corporate tax or reforming tax laws to benefit small business can have a positive effect on the economy by increasing the likelihood of new venture start-ups (Mbazo, 2017).