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

Enterprise and Entrepreneruship - Essay Example What remains after settling all the expenditure is the entrepreneur’s profit. Thus, the entrepreneur can be said to be one who shifts economic resources from an area of lower 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 values that the entrepreneur and entrepreneurship dispense in the society and towards economic stability and growth cannot be discounted because they are immense 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 country making a dereliction on entrepreneurship is tantamount to dealing that country a coup de grace (2007, 67). Entrepreneurship and the Economy One of the salient roles that entrepreneurship dispenses i n the society and to that society’s economy is the maintenance of the relationship between the consumer and the entrepreneur himself. Economies, especially, capitalist ones in the extreme aggregates have theoretical 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 complementary relationship between the consumer and the entrepreneur is that in the absence of entrepreneurs, the demand of the market will exist, but the supply will be inexistent. This means that even essential products will not be realisable. Likewise, the same also 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 soc iety 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 production. 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 extra expenditure. For instance, a transport company can be outsourced by a manufacturing company to help facilitate 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 firm continue with its production exercises (AMAM, 2010, 75 and Audretsch, 2007, 66). Frederick, Mons en and Hunter observe that increased unit and volume of production emanating from ploughed-back cap