Enterprise and Entrepreneruship Essay Example | Topics and Well Written Essays - 3000 words

Enterprise and Entrepreneruship - Essay ExampleWhat remains after settling all the expenditure is the enterprisers profit. Thus, the entrepreneur can be said to be one who shifts frugal resources from an area of subvert productivity, to an area of greater yield and higher productivity. The act that the entrepreneur engages in for the purpose of shifting economic resources from a point of lower productivity, to a point of greater yield and higher productivity is what an entrepreneurship is. The roles and set that the entrepreneur and entrepreneurship dispense in the society and towards economic stability and growth cannot be discounted because they are bulky and multifaceted. As a matter of fact, economists and business pundits such as Audretsch are poignant that, the (hypothetical) act of entrepreneurs in a given inelegant making a dereliction on entrepreneurship is tantamount to dealing that country a coup de grace (2007, 67). Entrepreneurship and the Economy One of the salien t roles that entrepreneurship dispenses in the society and to that societys economy is the maintenance of the relationship between the consumer and the entrepreneur himself. Economies, especially, punkitalist ones in the extreme aggregates encounter hypothetic levels of infinite demands. Entrepreneurs do this by creating goods and services, and thereby ultimately meeting the demand of the market which is the society. The gravity of this completing relationship between the consumer and the entrepreneur is that in the absence of entrepreneurs, the demand of the market will exist, but the allow for will be inexistent. This means that even essential products will not be realisable. Likewise, the same withal means that should the number of entrepreneurs in the society dwindle, then demand will still override supply, and thereby leading to an increase in commodity prices, higher cost of living and a society or an economy beset by inflation (Batabyal and Nijkamp, 2012, 340). Another way in which the entrepreneur benefits the society is by creating wealth. There are several ways by which an entrepreneur creates wealth. One of the ways by which entrepreneurs do this is by shortening the process of output. As the entrepreneur integrates economic resources to make them readily usable, the chain of production is decoupled, since the buyer is saved from the need to expend his synergy in producing the same material. The buyer thus is succored from supernumerary expenditure. For instance, a transport company can be outsourced by a manufacturing company to help assist the transportation of materials essential for production. Thus, the company will have saved the revenue it would have spent in buying large trucks, hiring scores of drivers and settling motor vehicle maintenance costs. The same money that would have been used in settling transportation cost may serve as ploughed-back capital, to help the manufacturing firmly continue with its production exercises (AMAM , 2010, 75 and Audretsch, 2007, 66). Frederick, Monsen and Hunter observe that increased unit and volume of production emanating from ploughed-back cap