北美经济学论文代写 The Impact Of Entrepreneurs On The Economy
As we know, the economy continues to grow as a result of globalization. Globalization itself is a new process of exchange of views held by one country from another country as a perspective on the world, products, culture and the most influential in the country are technological advances in transportation and telecommunications. Meanwhile, if we relate economic with globalization, then we can conclude that the economic interdependence between one country and others around the world that led to the rapid increase in the movement of goods, services and technology. The development of economic globalization in a country is usually seen on how fast the development of technologies and the country's productivity activities. Globalization economy had already happened long time ago, but with a policy created by the General Agreement on Tariffs and Trade and the World Trade Organization that gradually requires countries to reduce trade barriers and open a checking account and the capital account, led to a significant increase in the number of trading goods.
One factor that affects economy is entreprenuerships. Entrepreneur according to Brockhaus (1980) is defined as a major owner and manager of a business venture not employed somewhere. A more specific definition according to Hornaday and Aboud's is a man or woman who started a business where there was none before, who had at least 8 employees and who had been established for at least 5 years (Hornaday, J. & Aboud, J., 1971). These two authors have different thought which can be seen from their own definition. An analysis indicates that entrepreneurs is a common deminator and also an important indicator for a country's economic. In 2012 the real GDP of Indonesia is 6%. It has proved us that if the economy of a country wants to develop its fully potential, entrepreneurship should be developed fully. In this essay, I will discuss about the economic benefits provided by entrepreneurs and their disadvantages.
Firstly, the economic advantage of the existance of entrepreneur in Indonesia is creating a field job for unemploy citizens to reduce the unemployment rate. As we can see the unemployment in Indonesia in 2012 is 6.32%, on the other hand, India made a significant decrease from 9.4% in 2011 to 3.8% in 2012. For instance, millions of women in India managed to bring their families out of poverty by making entrepreneurs held through non-governmental organizations and also got through a variety of resources such as micro finance and so on. In contrast, Indonesia has lots of entrepreneur, but they only think about themselves without considering poor people's conditions. Therefore, the government of Indonesia should reduce the percentage of unemployment rate by increasing the number of entrepreneurs, because entrepreneurs can cause a great degree of impact on an economy through job creation.
Secondly, the increased of resources value makes many individuals and companies to compete finding the best methods to improve their operations. Obviously, this will make them thinking of the most efficient and effective resources to rise their operations. Since the natural resources had increased substantially, they must adjust their initial budget to meet all the necesssary. In addition, most importantly it reduces costs while adding value. Usually, if a country can obtain that objective, it will end up with good results such as an increase in economic productivity and in the Gross Domestic Product (GDP), which is indeed a benefit for the economy. Many people believe that when productivity increases the unemployment can often increase, thus reducing the positive impacts. In my opinion, otherwise, the productivity increasing which can then lead to increase unemployment will then cause more individuals to be creative, find niche markets, become entrepreneurs and begin generating more employment opportunities, which are going to re-inventing the wheel and driving the economy forward.
In addition, a very tight competitive market makes entrepreneurs looking for goods that are outside the market to increase their profits. It is related to the competitive markets' theory which is stated that if the price of goods is still above Average Total Cost, we still get profits, because there are still a low number of vendors in the market. However, if the price of goods is under the Average Variable Cost, it is recommended to leave the markets. Since there had had lots of merchant, our profit was decreasing slowly. Nowadays, many entrepreneurs in Indonesia who purchase lots variety of cheap goods from China and then sell them back at a high price to have benefits not only for themselves but also for the country's economic condition. By rising the Gross Domestic Product up, the businessmen also make contributions to their country by making the economic situation to be able to reach its prosperity such as reducing poverty numbers and also generating some funds to lift up the citizens living standards.
北美经济学论文代写 The Impact Of Entrepreneurs On The Economy
北美经济学论文代写 The Impact Of Entrepreneurs On The Economy
Moreover, by importing cheap goods, entrepreneurs are also helping the economy because by doing so entrepreneurs are actually creating a new market where imported products are being sold to the consumers. Imported goods cost more money than local goods, however there are many people who want to have the same brands as the original one. For example, at Mangga Dua, there are so many sellers who sale the duplicate of branded bags and wallets. Those sellers will undoubtedly get high profits because of the cheap price for customers and the high amount of customers' demand. This is actually a new market which also means that more and more people are spending their money and that more money are being rotated in the market which also means that the economy is improving.
Finally, the existence of entrepreneurs can improve the economy by providing better services. In a sense, entrepreneur exist in order to make profits for their business and their produts/services will definitely be better than the products or services government owned businesses provides. This means that better quality products and services will exist in the market with higher prices and the impact is more and more people will purchase those products and services which will obviously improve the motivation and probably the buying power of the consumers and therefore improve the economy.
Entrepreneurship however, also have a negative impact on the econonmy. One of the negative impact on the economy is that the entrepreneurs in Indonesia spend a lot of resources, especially natural resources that will destroy the environment in the long term. Especially in developing countries such as Indonesia where there are no rules to enforce the protection of the environment and this will let entrepreneurs use natural resources as much as they want. Furthermore, there are still many entrepreneurs who do not know how to utilize their resources which will result in the excess use of recources and therefore will lead to the destruction of the environment. For example, the Lapindo mud in Surabaya. The Lapindo corporation which is responsible to the project doesn't think about what will happen in the future. The drilling of the Banjar Panji-1 well which one caused the overflow of mud which is the hamlet of Balongnongo Renokenongo village, Porong district, Sidoarjo regency, East Java. If the company was thinking carefully how to do a proper drilling and using the right resources, the mud would not come to the surface and would not damage the neighborhood environments.
Next, the inability to utlize resources will also result in financial difficulties and moreover in extreme cases may lead to bankruptcy and this will have a negative impact on the economy because it will decrease the GDP of the country. The existence of entrepreneurs may also disturb the market price. Because when entrepreneurs enter a market, automatically competition will be more intense and may lead to the lower prices because of the intense competition. This may result in the destruction of the market, such as unstable prices and will actually give the consumers a hard time because of the unstable price. One example is the prices of chilly, when the prices of chilly goes up because of the unstable and intense competition, customers instead of gaining benefit from the lower price will suffer from the high prices caused by the unstable competition in the market.
In conclusion, entrepreneurs give both advantages and disadvantages to the economy. Entrepreneurs can improve the values of the resources and may motivate companies to find the best methods to improve their operations. Furthermore, entrepreneur creates a job fields for unemployed citizens to reduce the unemployment rate. Entrepreneurs can also improve the products inside the market by importing products from outside of their countries. However, they also use a lot of resources and some are still unable to utilize their resources and may destroy the environment in the long term and this inability to utilize their resources might cause them to experience bankruptcy and may even experience bankruptcy. Finally, after looking at all the advantages and disadvantages the existence of entrepreneurs actually improve the economy as they have more advantages than disadvantages to the economy.
Sources:
Brockhaus, R. (1980). Risk taking propensity of entrepreneurs. Academy of Management Journal, 23(3), 509-520.
Hornaday, J. & Aboud, J. (1971). Characteristics of successful entrepreneurs. Personnel Psychology, 24, 141-153.
http://finance.detik.com/read/2012/05/07/141833/1911053/4/bps-jumlah-pengangguran-di-in donesia-761-juta-turun-6
http://www.tradingeconomics.com/india/unemployment-rate
http://en.wikipedia.org/wiki/Economic_globalization
http://www.imf.org/external/country/IDN/index.htm
北美经济学论文代写 The Impact Of Entrepreneurs On The Economy