As a result of economic and social system restructuring, the international business environment has gone through a period of significant change starting 1980’s. The process is still evolving according to prevailing economic conditions.
New organizational forms, innovative compensation schemes, and even new business formation techniques have been tried. Some have been more successful than others and the process continues.
Academics describe the transition from a managerial to entrepreneurial society, which was evidenced in the United States in the 1970’s, and to some extent in Canada, as an “entrepreneurial explosion “.
According to the Oxford English Dictionary, an entrepreneur is: “one who starts or organizes a commercial enterprise involving risk”.
Americans, being eternally more optimistic than other nations, have been at the forefront of entrepreneurial vigour. There are many reasons for Americans to be more entrepreneurial. Venture capital is readily available, banks are more inclined to lend to individuals with proven business acumen, while paying less attention to business plans. American markets are huge and move infinitely faster than those in other countries.
In the United States preferences change quickly and firms in the market with a new, innovative product are likely to recuperate their investment rapidly and become profitable within a year or two.
The transition from a managerial to an entrepreneurial society will affect the way business is conducted in the current century. It will, if properly guided and monitored, create millions of lucrative jobs, revitalize moribund, old-fashioned, resource-based economies, and forge new prosperity. Such evolution is built on the back of dynamic, ambitious business people willing to take risks on the road to success (Think of British entrepreneurs – Sir Richard Branson, and Terence Conran, in the U. S. A. Steve Jobs, Bill Gates are only two of thousands who have been very successful).
Right across Europe and the U. S. A. entrepreneurs are launching businesses, which grow well over 25 percent per annul, and there are in all industry sectors including tourism. However, the growth rate has diminished significantly since September 11 2001, and especially after 2008, but optimism will soon return.
An entrepreneur has a vision, personal initiative, and the ability to lead and transmit optimism to others. Millions of people have intelligence, are skilful and invent new techniques or systems or machines, but it is the entrepreneur who mass-produces and markets them. In short it is the entrepreneur who links markets and production. He/she is the catalyst!
Without entrepreneurs economies cannot thrive and prosper.
The process of entrepreneurship is recognized as being at the heart of an economic development task, driven by motivated individuals seeking to satisfy personal goals. The ultimate aim of economic development is to create opportunities for personal fulfillment through economic activity. This requires a partnership between policy makers and entrepreneurs in order to achieve economic renewal and prosperity. In Canada and the U. S. A., it takes two working days to register a business and obtain required permits, except in restaurants and hotels, whereas in moist other countries registering a simple business takes more than three months. In third world countries the time required to obtain all the licenses and permits may require in excess of six months and many and substantial “ inducements “.
Such impediments discourage entrepreneurs and prudent business people.
Like water, money flows where it is least resisted.