BS7104 Assignment Sample – Entrepreneurship In An International Context 2022
Introduction (BS7104 Assignment Sample – Entrepreneurship In An International Context 2022)
Entrepreneurship is concerned with the ability and readiness of developing, organising, and running a business organisation that creates and provides value. Entrepreneurs are those who create and run the business and take all the uncertainties associated with the business.
Countries are working on creating an environment that is conducive for entrepreneurship and this provides various types of benefits for the country. A country that is able to maintain a positive and favourable environment for small and medium size organisations is very likely to succeed in its goal of economic development.
In this report, efforts by the country to develop a conducive environment for small and medium size organisations will be discussed. Additionally, issues related to enterprise and economic development will also be discussed.
Background of the country or region
Small and medium size organisations are very important for growth and success of the country and economy. SMEs provide strength to local economy and contribute significantly in business population, employment and turnover in the economy of a country (Entrepreneurship and Business Statistics, 2021). This is the reason that countries promote entrepreneurship and SMEs for the growth of economy
Germany is one of the countries in Western Europe with a population of 83 million and GDP of $4.743 trillion where per capita GDP is $56,956. It is a second most populous country in Europe and is a member of European Union. Germany ranks 15 in Global Entrepreneurship and Developmental Index ranking.
In Germany 58.5% jobs are created by SMEs and 99.6% German firms are SMEs and 35.3% sales, is generated by SMEs 82% apprentices in country are employed by SMEs (Small and medium-sized enterprises, 2021). Overall, SMEs plays crucial role in economy of Germany and Small and medium-sized companies. Approximately 82% of apprentices Germany do their vocation training in small and medium-sized organisations.
SME companies of Germany are popularly known as Mittelstand that are the strongly driving innovation and technology in the country and are well known around the world (The German Mittelstand as a model for success, 2021). As per one of the studies conducted by the Federal Ministry of Economic Affairs and Energy outlines that SMEs in Germany will continuously lead to drive success behind the trademark of ‘Made in Germany’.
In addition to this, small and medium-sized companies are responsible for more than half of the output in German economy with 60% of the job in the country.
Germany has been ranked second in best countries for entrepreneurship (Entrepreneurship, 2021). Mittelstand or SMEs sector in Germany is highly diverse including family on companies that, was established several years ago and trendy start-up, traditional craft firms, self-employed people, people providing different services, small and medium retailers, freelancers, firms initiating high-tech companies, local suppliers and global players.
Mittelstand in Germany is also a important partner for large companies across their complete value chain as they specialises and create innovative and complex products. Mittelstand in Germany is in an international is strong position as 44 percent of companies in Germany exports their products in foreign markets that contribute to the growth of the country’s economy.
SMEs are drives innovation and technology, and more than 42 percent of SMEs in Germany are responsible for introducing products and processes’ innovation in the market (Bokša et. al. 2020). German Mittelstand has become a globally known brand of its own that is diversified, dynamic, down-to-earth, and innovative. Continuity and dynamism are two important features that describe of the German Mittelstand, and as for this, they have effectively managed to overcome challenges and the impact of changes.
Efforts of the country to develop conducive environment for entrepreneurship
Germany is making several efforts to build an environment that is conducive for SMEs organisations. For the purpose of this policy have been developed and 10 important areas focused in the policy are-
Promotion of entrepreneurship: Start-ups are very important for the economy of Germany, and every year around 300000 new businesses are created in the country. The newly developed business is contributed to economic drive and creates employment in the country and also contributes tournament is the strength of the country (Wang et. al. 2018).
Businesses that passed on from one generation to another become protected, tried and tested business models and manage to retain competency along with securing employmment in the business. For this ‘The Go’ start-up campaign in Germany is to promote the spirit of entrepreneurship in Germany. This especially targets people who have been underrepresented in entrepreneurship like women and migrant entrepreneurs.
The country has also taken initiative for Women entrepreneurs to motivate them in starting the Enterprise.
Strengthening the financing of start-ups and growth: SMEs are likely to experience issues related to Finance and investment in their organisation. To make the environment conducive for SMEs country working on strengthening financing of start-up and growth by creating a culture of loan-based SMEs financing (North et. al. 2019).
Ministries are closely looking at the effect of financial regulations on small and medium sized organisations and the availability of finance. The country is also working on ensuring that large companies do not get preference over small and medium size organisations for financing.
Along with this, several instruments that have been developed by the Ministry to add venture capital market these are known as ERP/EIF growth facility and ERP/EIF fund of funds.
Securing skilled labour and employing refugees to vocational training and work: Employing skilled labour is a very important challenge for small to medium size organisations because they usually look forward to working in large corporations. Germany as a country is experiencing strong competition at international level to attract the talented personnel, and small and medium-sized companies have to compete with big corporations to employ competent employees (Merkel et. al. 2019).
Hence, to make the environment conducive for small and medium-sized organisations country is working on attracting skilled professionals from a foreign country. A program known as the ‘Perfect Match’ program has been created to provide advice to SMEs about how they can find apprentices for their company.
Harnessing and shipping digitisation: The ministry in Germany is supporting digitisation invest skilled craft sector is running twenty-five centres of excellence for ‘Mittelstand 4.0’ located all over the country (Pereshybkina et. al. 2017).
These centres provide support in form of an expert network for the sharing of experience.
Issues related to enterprise and economic development
Contextual issues
Sociodemographics: Sociodemographic is one of the important contextual issues for enterprise and economic development. Sociodemographic include the impact of consumers and customer preferences on success on the development of enterprise and the ultimate impact on the development of the economy.
Consumer preferences and their test is important element that affects the success of businesses and their survival and growth in the economy.
Political: Political issues include the impact of political decisions and policies for small and medium size organisations that affect their development and growth. The development of small and medium-sized organisations ensures that they will make a positive impact on the development of the economy of the country.
Ministries in Germany are making policies and strategies through which they can promote Entrepreneurship and the development of small and medium-sized organisations which contribute to enterprise and economic development.
Legal: Legal issues include the impact of different regulations and legislation on the successful operations of small and medium-sized organisations. It is very important that favourable legislation and laws are there to support the development and growth of small and medium sized organisations.
Technological: Technological factors are essential issues affecting the development of enterprise and the economy of a country. Strong technology help companies in becoming competitive and valuable for customers.
Small and medium-sized organisations are continuously increasing their role in innovation and have a strong technology however in case of ineffective and obsolete Technology they might face a challenge in their development.
Conceptual issues
Innovation: Innovation is one of the conceptual issues that affect the development of small and medium sized organisations. Innovation includes the ability of a firm to provide new and unidentified solutions to the problems of people and their customers. Innovation is very important for the success of organisations and plays crucial role development of the economy and enterprise.
Organisation: The organisation is also an important challenge or issue in the development of economy and Enterprise as per which firms are likely to face difficulty in their organisation. It is very important that a firm’s creating value are also able to organise value that they provide to gain maximum benefit in its development and contribution to the development of the economy.
Vision: Vision is also a very important issue that affects the development of enterprises and the economy. Firms having clear vision are able to work in the right direction to achieve their vision and fulfil their goals. In case of firms do not have a clear vision, they will not be able to work on the right path to achieve their vision.
Conclusion
Based on above discussion, it can be concluded that small and medium sized organisations are very important for the success and growth of a country’s economy. In order to promote small and medium size organisations, Germany has taken several steps and there are several issues associated with small and medium sized organisations.
References
Books and Journals
Anisimova, V.Y., (2019). ISSUES OF DEVELOPMENT OF A MODEL FOR INDUSTRIAL ENTERPRISE INFORMATIZATION. Vestnik of Samara University. Economics and Management, 10(2).
Batkovskiy, A.M., Kurennykh, A.E., Semenova, E.G., Sudakov, V.A., Fomina, A.V. and Balashov, V.M., (2019). Sustainable project management for multi-agent development of enterprise information systems. Entrepreneurship and Sustainability Issues, 7(1), p.278.
Bokša, M., Šaroch, S. and Bokšová, J., (2020). Digitalization of SMEs. International Advances in Economic Research, 26(2), pp.175-177.
Demidenko, D.S. and Vaganov, P.I., (2020), September. Transformation of the enterprise cost model in an innovative economy. In IOP Conference Series: Materials Science and Engineering (Vol. 940, No. 1, p. 012043). IOP Publishing.
Kutsenko, V.Y., (2020). Methodology of diagnostics of economic security level of an enterprise. Economic Bulletin of the National Mining University scientific journal, 69(69), pp.85-95.
Merkel, S., Ruokolainen, M. and Holman, D., (2019). Challenges and practices in promoting (ageing) employees working career in the health care sector–case studies from Germany, Finland and the UK. BMC health services research, 19(1), pp.1-12.
Mugambi, M.M. and Miriti, G.M., (2021). Nurturing the Industrial Economy Through Enterprise Education: The Case of Kenyan Universities. In Handbook of Research on Nurturing Industrial Economy for Africa’s Development (pp. 192-210). IGI Global.
North, K., Aramburu, N. and Lorenzo, O.J., (2019). Promoting digitally enabled growth in SMEs: a framework proposal. Journal of Enterprise Information Management.
Pereshybkina, A., Conde, M.E.C., Kalyesubula, T. and Kirner, E., (2017). How will the industry 4.0 transformations affect SMEs in Germany by 2030?. Hochscgule Furtwangen University.
Wang, X., Liu, Y. and Ju, Y., (2018). Sustainable public procurement policies on promoting scientific and technological innovation in China: Comparisons with the US, the UK, Japan, Germany, France, and South Korea. Sustainability, 10(7), p.2134.
Online
Entrepreneurship and Business Statistics. 2021. [Online]. [Available Through]: <https://thegedi.org/global-entrepreneurship-and-development-index/>.
Entrepreneurship. 2021. [Online]. [Available Through]: <https://www.usnews.com/news/best-countries/entrepreneurship-rankings>.
Small and medium-sized enterprises. 2021. [Online]. [Available Through]: <https://www.destatis.de/EN/Themes/Economic-Sectors-Enterprises/Enterprises/Small-Sized-Enterprises-Medium-Sized-Enterprises/ExplanatorySME.html>.
The German Mittelstand as a model for success. 2021. [Online]. [Available Through]: <https://www.bmwi.de/Redaktion/EN/Dossier/sme-policy.html>.
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