Benefits of entrepreneurship to the national economy !
Benefits of entrepreneurship to the national economy !
Benefits of entrepreneurship to the national economy
1. Creation of new employment opportunities .
2. Appearance of an opportunity for income
3. Opportunity to use new products and services.
4. Raising the standard of living of the people
5. Formation of a mass industry level
6. Utilization of regional resources for production
7. Development of new markets
8. Increase in the country's gross domestic product
9. Contribute to economic development
10. Formation of an autonomous and independent economic society
11. Optimum utilization of resources available in the country
( advance )
Introducing new products and services in the market
The entrepreneur always tries to offer the customer a new product or service that is better than the goods and services available in the market
Eg:- Sale of Saman fish
Creation of employment opportunities
In an effort to introduce a product or service using new ideas, an additional team of employees should take it to him to make it meaningfully
Export of end goods to foreign exchange
Since the entrepreneur is engaged in the economy through new products, foreign market opportunities are available for this purpose and these market opportunities create opportunities that can break the foreign exchange
Increase in the country's gross domestic product
The entrepreneur is trained to increase the amount of products that can be fulfilled for the economy through the creation of new goods and services. This will increase the total production of the country.
Contribute to economic development
Entrepreneurs are given the opportunity to successfully implement projects for the development of the country from the donations made to the government. In addition, the overall economic development will be paralleled by reducing unemployment through new business opportunities due to the interest in new things, by improving the income level of the people and raising the standard of living.
Utilization of National Resources
With effort, he will be able to fulfill his thoughts. He creates new business opportunities by utilizing the unused resources available in his immediate environment. Taitu
Regional developments taking place
An entrepreneur can improve his business environment by undertaking new creations and taking steps to expand them. Through its progress, it can contribute to the diverse development of the area.
Formation of a selfreliant and independent economic society
Individual development, social development and economic development can be achieved through the development of entrepreneurship and thus there is no need to stay in the country due to the economic strength, through which an independent and autonomous economic society is formed and peace and coexistence are ensured.
Income will split and inequality will decrease
As more people are left out, more people get the income that separates in a small group.
Importance of Entrepreneurship to Sri Lankan Economy Contributions / Benefits of Increase in Entrepreneurship
1. Increase investment
2. Increase the formation of a variety of institutions
3. Increase in resource utilisation
4. Increase employment opportunities
5. Increase in personal income
6. Increase in supply leads to fall in prices
7. Increase the quality of life of the people
8. Creation of new goods services will increase.9. Use of modern technology will increase
10. Economic growth
11. To engage in successful business activity in response to environmental changes
Institutional Benefits of Entrepreneurship
1. Ease to face competitive conditions
2. Expansion of business activities
3. Continuous Improvement Continuous Improvement
4. Expanding market share
5. To become a specialist in the industrial sector
New Trends in Entrepreneurship
The new trends in entrepreneurship can be classified as follows
1. Global Entrepreneurship
( global Entrepreneurship )
2. Social Entrepreneurship
( Social Entrepreneurship )
3. Green Entrepreneurship
( green entrepreneurship )
4. Internal Entrepreneurship
(Indoor entrepreneurship )
Global entrepreneurship
It refers to the ability to engage in global trade, i.e., the ability to communicate with any other country or place in the world through the application of technology and transform it into state boundaries
Social Entrepreneurship
Engaging in books in order to engage in solutions to social problems with the intention of serving society is a place concept.
The following advantages are expected
Contentment
reception
fame
Reciprocal Benefit
Green Entrepreneurship
Green entrepreneurship is the process of being aware of the concept of masculinity and trying to make a positive impact on the natural environment with utmost attention to the needs and problems not only environmentally but also socially.
Internal Entrepreneurship
Creative individuals who occupy key positions in organizations make changes not only in the products of the organization but also in the methods of production.
They and such individuals will be encouraged to do such constructive work by the higher managers.
This attempt to act in an organization that introduces changes in an organization is called global Entrepreneurship is the enterprise that operates within the company that introduces it.
Entrepreneurship and Small Scale Business
The following topics will be discussed in this chapter
4.1 Small scale business
4.2 Relationship between small scale business and entrepreneurship
4.3 Contribution of small scale business to economic development
4.4 Limitations of Strengths of Small Scale Business
4.5 Small scale business
4.6 Factors Influencing the Failure of Small Scale Businesses
4.7 Measures to be taken to make small scale businesses successful
4.8 Role of Entrepreneur
4.9 Basic Skills an Entrepreneur Should Develop
Small scale business
mall scale business is those which produce and distribute goods and services to satisfy the needs and wants of human beings.
In other words, a small-scale business is a privately run business with relatively little staff and less capital.
These businesses can be classified on the basis of dharma as follows.
1. Small scale business
2. Medium Size Business
3. Massive Volume Business
Characteristics of Small Scale Business
1. Small amount deposited as capital
2. Low staff population
3. Ownership of the business by a single person
4. Ease of decision making in the course of business
5. Business activities limited to a narrow limit
6. The market is small
7. Making decisions based on the information available with him
8. Often the owner is the manager
9. Compared to large businesses, they have little financial control
10. Lack of use of modern technology
11. Mostly the market is domestic
Factors that contribute to the success of an entrepreneur's businesses
1. Creative Business Ideas
2. Risk Management
3. Facing the competition
4. Customer Focus
5. Panel for better network contacts
6. Time Management
7. Flexibility
8. Search for information
Relationship between small scale business and entrepreneurship
Most successful entrepreneurs have their beginnings through small scale businesses, not only with the skills of entrepreneurship but also through the practical use of the hidden fruits
Many books have also been produced through small-scale business.It will be easier for them to expose their creative thinking and experiment with new products
The interaction between small-scale business and entrepreneurship is very important. Small-scale businesses typically try new ideas that are very industrious and eager, ready to face the challenges that go ahead.
Both of these categories must be capable of generating new ideas and implementing them.
❖ Reasons why entrepreneurship is important for the success of small scale businesses
Modern ideas:
With entrepreneurship, businesses can develop new ideas and modern methods and offer new products or services that will dazzle the market
Teacher's Skills:
With entrepreneurship, a business develops technical and management skills and helps them learn to overcome challenges.
Well adapted to contrasting situations:
With entrepreneurship, the business will be more able to adjust and adjust themselves, readily adapting to market needs and changing circumstances.
Ability to take decisions with hasty thinking:
With entrepreneurship, businesses can predict emergencies and come up with solutions quickly.
Motivation for achievement:
With entrepreneurship, the business gains the necessary incentive and enthusiasm for success, which further promotes business growth.
❖ Contributions of small-scale businesses to economic development
- Creating Employment Opportunities:
• Small scale businesses create large number of employment opportunities and improve the standard of living of the common man
• . This helps to reduce work pressures to a minimum.
Raising Public Income:
o These businesses play an important role in the economic development of local communities because they provide them with income and benefits.
o Creating a properly stable business environment:
o Small scale businesses operate in different sectors and help create different economic environments. This helps increase trade volumes.
Meeting Community Needs:
o Small-scale businesses cater to local market needs, thereby increasing business transactions to boost the local economy.
Building High-Quality Skills:
o They provide new technologies and capabilities in a subtle manner and facilitate technological advancement and development.
Supply of ordinary goods at affordable prices:
o Local businesses often provide affordable utilities and alleviate economic difficulties.
Incentivizing Companies:
Small scale businesses create new business opportunities and provide startups and incentives to start new companies.
Considerations when starting and running small scale businesses
1. To know and assess ones abilities and abilities.
2. Whether the market available for production can also be accessed
3. Opening Capital Understanding the working capital required
4. Know about business organization
5. Business Organisation and Laws in Practice
6. Contemporary competitive situation
Advantages of Small Scale Business
The successful sustainability of small-scale businesses is a very important factor in economic growth in all countries. The strength of small-scale business is not limited
It includes all the positive factors that can be used and used to start and run a business.
Advantages of Small Scale Business
1. Being able to start a business with limited resources.
2. Use of indigenous technology
3. Incentives available by the government in business activities
4. Able to cope easily to environmental changes in the course of business
5. Ease of training and training of children
6. Obtaining maximum benefits from various skills of the employees
7. Ability to obtain family contributions for business activities
Less on investment:
Less can be executed on initial investment, which reduces capital for new business startups.
Easy operation with convenience:
Small-scale systems can be managed elegantly and easily, which helps keep management and operation smooth and easy.
Experiential crises:
With the small size of the business, business owners can be directly involved in all the activities, which helps them maximize experience.
Diverse Market Demand:
Excellent personalized service and can easily meet customer needs, which helps increase customer satisfaction.
Open Thinking:
Small-scale businesses can easily adapt and revamp quickly to make new ideas more electronically possible.
Social Benefits:
Keeping local communities connected, these businesses create jobs there and help boost benefits.
Business Opportunities:
More and more local markets can be used to create new opportunities in specific areas
Definitions of Small Scale Business
Limiting the means of obtaining capital required for the business
The capital for the business is collected from the owner.If you borrow from other parties, there will be many types of barriers to such forms.
Lack of use of new technologies
What is the explanation of the technology and because you have to spend a lot of money to get them, they do not use them.
Market Definition
The market is small as the business activities of small scale businesses are limited to their respective regions.
Increased involvement of family members in business activities
It is seen that there is no need for family members to interfere in business activities. Due to these reasons, business activities may be hampered.
Limited business experience and knowledge of the business owner
For the most part, small-scale businesses have very limited knowledge and experience, which hampers the running of those business operations .
❖Factors influencing the failure of small-scale businesses
We must have seen that most of the small scale businesses have failed due to various reasons, if you pay your attention to such businesses, you would have understood the reasons for the failure of small scale businesses.
• Weak management in financial transactions of the business
• Unable to face competitive conditions
• Unplanned conduct of business activities
• Manager's weakness
• Improper management of resources in a business. Most of the businessmen do not realize that they are entrepreneurs.
• Lack of practical experience in human activities
• Weak human connection
• Inadequate infrastructure facilities
• Lack of new technical knowledge and nonuse of new technical knowledge
Measures to be taken to make a small scale business successful
1. Effective planning and execution of business activities
2. Get advice and guidance from famous people
3. Accurate reporting of transactions
4. Identify changes in the external environment and make necessary decisions.
5. To keep the personal life of the merchant different from the business activities.
6. Obtaining assistance from government institutions assisting in marketing facilities, credit facilities, research activities etc.
7. Establishing good human relations
8. Availability of adequate infrastructure facilities
9. Provision of various institutional marketing facilities
10. Presence of a wide market
11. Incentives such as financial and tax freedom
12. Availability of effective management
Creating a Business Plan**:
It is important to create a clear and detailed business plan. This should include your objectives, market research, competitors, economic plans, and development initiatives.
Market Study**:
Research your target market, their needs, and competitors to find the right market demand for consumers.
Managing the First Investment Well**:
How to spend investment, when conducted through better organization and planning, can control expenses well and get higher returns.
Capital and Financial Management**:
Manage finances better. Calculate expenses, revenue, and investments correctly.
Excellent customer services**:
Provide the best services for customers. Listen to their opinions and cater to the needs.
Using Technology**:
Using technologies, improve the performance of your business. Use the internet, social media, and software appropriately.
Planning and efforts for success**:
Advance plans for growth, new markets, and new product launches.
Skills Management and Training**:
Upgrade and train employees so that they can do their jobs more efficiently.
Management of Variation**:
Correctly predict market changes and variations and align your business accordingly.
Advertising**:
Use your business to vote and advertise and gain new customers.
Companies that provide incentives to small scale businesses
1. National Enterprise Development Authority (NEDA)
2. Small and Medium Scale Enterprises Council
3. Industrial Development Board
4. Export Development Board (EDB)
5. Sri Lanka Standards Institution
6. National Development Bank
7. Institute of Technology
8. Small and Medium Industries Council of Sri Lanka (SLCSM)
Human Resource Management in Small and Medium Businesses
Human resource management is the art of harnessing human resource potential in an organization to achieve its strategic goals, improve productivity, and promote a conducive work environment.”
In today's continuously changing business environment, the role of Human Resource Management (HRM) is more than just administrative functions. The need for efficient HRM practices is vital, as it can make a substantial difference in growth, innovation, and long-term sustainability. Behind every successful business are its employees. HRM is the driving force that connects employees' skills and their aspirations to the goals of the organization
.
https://diriya.lk/ta/human-resource-is-the-heart-of-sme/)
Acquisition and Retention of Talent:
SMEs rely on a small number of employees to engage in operations. Therefore, it is imperative to attract and retain skilled workers.
Developing skills:
Employees in SMEs often run multiple professions due to the narrow organizational structure
Compatibility and Innovation:
In a rapidly changing business environment, SMEs need to be agile and innovative
Employee Involvement:
Engaged employees are highly productive, motivated, and dedicated to their company's success.
Role of Entrepreneurs
The type of roles that have to be performed by each department while performing any activity is called role.Even when a small scale business is carried out, one has to perform a variety of activities. The role of an entrepreneur can be identified as the role of an entrepreneur.
As an entrepreneur, he operates on different types of roles such as owner, manager and leader. Although this type of investment is shown differently, the internal relationship between the respective bank roles is very important for the success of the business.
The role roles of an entrepreneur may vary depending on their field and professional methods, but there are generally some key roles:
Investment and Capital Management**:
Entrepreneurs look for the necessary investment for the business and manage it. They look after responsibilities relating to income, expenses, and financial management.
Business Ideas and Planning**:
They generate new ideas and develop viable business plans. They are the theories of business objectives, goals, and growth strategies.
Customer Demand and Market Analysis**:
They will do research on market demand, customer preferences and competitors, and set up the business according to the market demand.
Status and Resource Sharing**:
They build statures for the business and foster relationships with investors and other stakeholders.
Formal and managerial tasks**:
They manage the business day-to-day, manage placements, and organize all operations.
Technology Upgradation**:
Using technological developments, they introduce new methods to improve the efficiency of the business.
Overcoming Variations**:
They are the ones who restructure the business according to market changes, technological changes and financial situation.
Advocacy and Training**:
They provide training to employees and improve their skills, which helps them to improve the efficiency of the business.
Advertising and Sales**:
They promote the goods or services of the business and lead to sales.
Overview of relationships**:
Supervision of relationships with customers, vendor, and other stakeholders.
Role of the proprietor
All businesses belong to each party by leaving resources to them. In order to acquire the ownership of the business, it can be acquired by various methods such as by putting resources in cash, laying of parts such as furniture, land etc. or by utilizing human resources such as its energy or skills.
The role of the owner is to provide the necessary resources, understand risks and make important decisions to achieve the aims and objectives of the entrepreneur's business.
Eg :- Purchase of equipment required for business
To take charge of profit or loss
Role of the Manager
It is essential to operate the resources of a business in a successful manner to know its aims and objectives. This can be identified as easy management. The owner should be actively involved in the management type role for the success of the business.
The role of management is the ability of a business owner to use the resources acquired to achieve the objectives of the business.
Eg:- • Preparation of business plan
* Checking whether the activities are in accordance with the plan
Role of the Chairman
Achieving the aims and objectives of starting a business requires providing the right leadership, especially in the use of human resources.It is necessary to provide the right leadership to the human base and provide the responses they show during the activities.
The role of the leader is defined as the role of the entrepreneur involved in the various activities of the business in which he directs, motivates and coerces human resources.
Eg:-• Motivating the employees and providing necessary guidance
• Guiding employees while executing tasks
Basic skills that an entrepreneur should develop
There are many basic skills that an entrepreneur needs to be able to perform his role successfully, and some such skills are as follows:
Technical Skills
Technical skills are the knowledge, experience, and strength of an entrepreneur to be able to apply special methods or techniques while engaged in the activities of an organization or organization.
For example:- Adequate skills to put the machinery purchased for the business in place, operate, repair and refurbish. Skills available to recruit the best employees while maintaining a clear recruitment system
The technical capability of a business is based on its technological resources, process improvements and new modern techniques. This can be explained as follows:
Technical Resources**:
Software, equipment, and technical resources in the business's stock.
Process Improvements**:
New methods of working, increasing efficiency and efficiency.
Modern Strategies**:
Creating new opportunities by taking advantage of technological advancements.
Benefits of AI for Small Businesses
AI offers many benefits to small businesses, including:
Capacity
AI automates repetitive tasks, saving time, and allowing employees to focus on high-value activities.
Customer Insights:
AI can analyze customer data to customize marketing strategies and improve customer satisfaction.
Competitive Edge:
AI helps small businesses operate competitively and make informed decisions based on data analysis
technology
Human Abilities
It is essential to build the interactions of people in the organization, whether internal or pain-based.
Human ability is the ability of the entrepreneur to create the necessary opportunities, encourage and motivate the relevant parties to create such contacts. These human abilities are considered a resource when working with special individual groups.
For example:- Ability to work with individual teams in a business, delegate work to them, motivate employees, etc.
Conceptual Skills
What are the conceptual skills of the entrepreneur to take the business in general and to make the necessary decisions to make the business successful in the future, to further develop them and to determine the necessary strategies and carry out the activities that can be implemented?
For example:-
1. Manufacture of new products
2. Explore new market opportunities
3. Facing the competitiveness of the business
Skills to work with teams
In the course of business operations, entrepreneurs have to work with different groups and different people.The ability of the entrepreneur to work with a team is the ability of the various members of the enterprise to work as a community and achieve the objectives and objectives of the business.
For example:-
Work system of groups
Feelings of groups
Communication Skills
Communication skills are the ability of an effort to assemble information and report it effectively to provide information to different stakeholders in the organization.
Examples:
Meeting Conduct
Exchange of information
Consulting skills
More and more employees are involved in business activities and in such cases their various operational problems arise. Counselling skills are the ability of the entrepreneurs to provide the right guidance and advice to specific parties in such situations.
Examples:
1. Personal problems of employees and conflicts between employees, problems related to welfare, etc.
Skills to lead by example
Exemplary ability is the ability of an entrepreneur to act first in all situations by providing guidance to guide his or her employees in the right way to achieve the planned objectives in an organization or organization.
For example:-
1. When the business is running at a loss, do not give up and strive to advance the business
2. Getting to work on time
3. Acting reasonably.
Methods to develop entrepreneurial skills
1. *Develop the confidence of choice*:
Set small goals and achieve them to build confidence about your abilities. These will be an incentive for you to improve their skills.
*Act with confidence*:
Face new challenges and try to integrate those failures and learn from them, even if you are likely to fail.
*Reporting and Evaluation*:
Get systematic assessments from handlers to view your progress and make necessary changes.
*Aptitude Exercises*:
Improve skills based on activities such as mental exercises, patience, thinking skills, and teamwork.
*Improve self-knowledge*:
Know your weaknesses and weaknesses and learn to the best of your abilities.
*Big goals and planning*:
Plan to achieve important goals in your life. Plan to achieve important goals and implement ideas to achieve them.
*Tip and Support*:
Get support from friends, family or coaches to improve your progress and build self-confidence.
Benefits of entrepreneurship to the national economy !
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