The World: Theory – Critical understanding of global entrepreneurship, innovation, and sustainability issues and challenges.
1.1 Global Entrepreneurship
The world economies today are run and operated by activities of the global entrepreneurs. Many business activities across the value chain have been globalized and more integrated. Global entrepreneurship is a business activity that is new and innovative across national boundaries. The activities carried out in global entrepreneurship is exportation, licensing, starting up of new oversee marketing offices and absorption of different international ventures and importation, and many other business operations. In the chapter, I shall stipulate the various ways in which global entrepreneurs combine the different entrepreneurial processes in incorporating innovative sustainability.
A report by Mckinsey and company, the world’s GDP by the year two thousand and twenty-seven, will have been sold by eighty percent across the international boundaries. This is in comparison to 20% in the year 2001. The estimation states that the international entrepreneurial activities will multiply the current estimation of $5 trillion by ten, approximately hitting $70 trillion. Global businesses are multinational business ventures which have their bases in one major country, but it operates across different states. Different pillars have been stipulated and are aimed at stimulating economic development, and to improve competitiveness. Some of the aspects include social values towards entrepreneurship, individual attributes, and entrepreneurial activities.
1.2 Innovation and Sustainability issues
Business growth and expansion often incorporate new approaches, which entail innovations, thus contributing to the growth of the business. Sustainable changes in the global entrepreneurship consider sustainability issues like environmental, societal, and financial challenges. They are then integrated and absorbed into the company’s operations. Through research and development, a roadmap is stipulated over which the issues can be solved in a long term manner at a lower cost and eventually contributing significantly to global entrepreneurship. Businesses today are faced with many challenges. Innovation and sustainability go hand in hand. This is because businesses globally need to venture into new products or be more innovative in the product line they are dealing with to change the business practices to make them sustainable. Sustainable businesses globally aim to create new product lines that are aimed at addressing the societal and environmental concerns in different approaches. All of the activities in innovation and sustainability can be made successful through entrepreneurship and innovation. The provision of innovative solutions in solving environmental and societal concerns also determines the success of a new business startup. All kinds of businesses globally apply to this, including the multinationals, an example being the Microsoft.
Different reasons make the multinational companies conduct sustainability and innovative entrepreneurship. According to Schaper (2016), the main reason for these can be maintaining and upholding the organization’s image. They also gain financially as they become the leaders in fighting for environmental and social concerns. By involving in sustainability issues, they stimulate positive changes in societal matters.
Climate change and resource scarcity are some of the challenges facing sustainability and innovation. Resource scarcity has been toppled up by the growing population and economic activities and the global climatic changes. Preservation of some of the scarce resources can be the best approach in solving some of the issues since replacing them with human-made aspects can be impossible for some features (Schaper, 2016). Instability like conflicts across the borders can also be other societal aspects that eventually affect the global business operations, and they need to be taken into consideration. Development across the nations needs to be made sustainable to meet and create long-term practices.
1.3 Thematic Option
The World Economic Forum Annual Meeting in Davos-Klosters is one of the critical global meetings globally aimed at aiding the states in monitoring the progression of their activities onto the Paris Agreement and the sustainable development goals. The forum was aimed at bringing together many participants who are over two thousand. It is aimed at bringing a closer understanding to stakeholder capitalism, which shall make the different nations able to track down the progress in the adoption of the Paris Agreement and the efforts. The efforts aimed to achieve global sustainable development objectives, therefore facilitating the different global technologies and international trade.
The economic forum presented several issues and challenges which ought to be provided for, with solutions that can be long-term solutions. The solutions should always improve sustainability in the multinationals, which still provide a basis over which the other upcoming businesses can copy and use as referrals when conducting and expanding their operations (Băhnăreanu, 2019). Some of the challenges discussed in the forum instabilities across the nations, like the existence of conflicts across the different countries, implementation, by ensuring that the programs fit into the local context and the various forms of governance in the different countries which are likely to affect the way business is done in the different nations.
The World Economic Forum Annual Meeting in Davos-Klosters presented several themes. Business startups; Small Business Developments; developing successful global business ideas and exploiting global markets; Business Models and operations provide the core base for global entrepreneurship and contribute majorly to the innovation and sustainability (Băhnăreanu, 2019). Sustainable global entrepreneurship has received enough recognition. It has promoted global business ideas, and the small businesses across the economies thus provide the best business models and operations that can encourage the creation of multinationals (Leyden, 2016). Entrepreneurship and the subsequent innovation do not necessarily mean that they occur in specific businesses. Still, they are happening in small and large companies, including the multinationals, non-profit organizations, and the different government agencies.
The Annual Forum meeting in Davos aims at achieving a cohesive and sustainable world, which is focused on creating a concept of capitalism. It aims at overcoming the income inequalities across the different citizens in the business world, therefore, avoiding or combating the societal problems like divisions, and lastly, the climatic changes which end up bringing havoc to the international businesses.
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Part 3
Critical Reflections of Entrepreneurial Theories, Concepts, and Techniques
In the event, our project exposed us to the nature of the entrepreneurship sector, which has covered widely throughout the world. I gained a deeper understanding of all of the concepts and techniques deployed by the global entrepreneurs as well as the entrepreneurship theories. In the text, I aim at reviewing the various entrepreneurship theories and the concepts and procedures affecting the entrepreneurship sector as a whole. I will also study the assumptions and critiques of the theories within the context.
3.1 Concepts and Techniques of Entrepreneurship
Enterprise
Within the course of the project, I was able to learn that all of the establishments within the streets, with a motive of making a monetary gain, by buying the goods and selling them to customers and this process results in making of a profit is what majorly describes an enterprise. This made me understand that all of the establishments across the streets today and all the different ways the businessmen try to make profits from their works make up enterprises. All of the enterprises can be public companies or partnerships. Some can also be family businesses, whereas others can be sole proprietorships. The event management industry consists of limited companies or the top-notch partnerships that are majorly made up of event management enterprises. Their main goal is to create a profit. The organizations bring together some folks who plan and provide services to the different businesses and, in return, make profits.
Entrepreneurs
From the knowledge I gained from the enterprises’ study, I learned that an entrepreneur is an individual who runs or takes the responsibility of the business, manages, and wholly owns the enterprise. Some scholars define entrepreneurs as persons who have possession of a business venture or coming up with new and different enterprises with new ideas. They possess full responsibility for all of the risks associated with the running of the investment, but thoroughly enjoys the long run profits of the venture. This directly relates us to innovativeness. This gives me an insight that being an entrepreneur requires you to be innovative and a risk-taker to get new ideas that can benefit the enterprise. Also, the ideas will contribute significantly to the expansion of the enterprise’s product lines as a whole. Therefore, that act of being an entrepreneur results in entrepreneurship. This relates to the two terms directly.
Entrepreneurship
Entrepreneurship can be classified as a broader term, from being a field of study to an activity. I defined entrepreneurship as a field of business ventures intending to get more in-depth knowledge and understanding of the various opportunities for innovation in regards to the products, services, markets, the raw materials, managing the current technologies in business the business processes. They are majorly invented by the entrepreneurs who focus on developing the opportunities hence bring about several changes and effects.
Growth in Entrepreneurship
Over recent years, millions of new businesses have been registered. I noted that businesses majorly run all of the towns. Almost everything about the cities is made up of entrepreneurs, and everything is business-oriented except for the few individuals with other functions. The growth of entrepreneurship has been motivated by many factors. These factors can be, media, change of the fundamental values, and the progressive changes in the work contracts. All of these factors reflect theories of social change. Work contract factors have contributed to entrepreneurship since many of the employees now are looking for independence and freedom.
Theories on Entrepreneurship
I witnessed the growth of entrepreneurship has been influenced by several theories that are trying to explain and describe the entrepreneurs, and the way entrepreneurship has developed. Some scholars say that entrepreneurs are persons who innovate, organize production factors, and be the catalyst for economic development. Ucbasaran et al. (2001) noted that entrepreneurship literature development, there are different themes and lines to enquire, which can be recognized in the process of developing entrepreneurship theory.
Sociological entrepreneurship theories
Under this characterization, two theories come up. Theory of religious beliefs and the theory of social change. These theories describe the sociological changes inspiring entrepreneurship. The level of analysis of the two methods of sociological theories is the traditional society. Social networks build social relations and bonds that promote trust amongst individuals, resulting in entrepreneurial opportunities. This shows that entrepreneurs are not supposed to take advantage of the people.
Psychological entrepreneurship theories
Personality traits
The theories in the sector raise focus on the personal attributes that characterize entrepreneurship. The personal traits like risk-taking, innovativeness, and creativity have majorly affected the development and changes in entrepreneurship. According to Espiritu-Olmos, Sastre-Castillo, (2015), I learned that personal traits are the stable qualities that one brings out in different occurrences and situations. The entrepreneurs are characterized as opportunity-driven, as they are more creative and innovative with high-level management skills and knowledge in business. However, the trait model has not been documented with evidence of research by the previous scholars.
Locus of control
This is the distinct opinions about the causal causes of events. This describes that the success of entrepreneurship relies on the personal abilities and the support the entrepreneurs get from outside. Some scholars also found out that the business owner’s control of the business greatly affects the success of that business compared to the outside population
Need for achievement theory
The theory indicates that humans are driven by the need to succeed, achieve, and excel in entrepreneurship, which contributes significantly to the success and development of entrepreneurship today.
Economic Entrepreneurship Theories
The theory has been central to the classical and neoclassical theories of economics. The theories in this category study the economic factors that contribute to entrepreneurial behavior.
Classical theory
The theory focuses on the virtues of free trade, specialization, and competitiveness in the entrepreneurship sector. According to Parker (2018), classical methods stipulate the three production factors that have inspired entrepreneurship: capital, labor, and land. Objections to the assumptions of these classical theories are; the theories have been unable to explain the changing upheaval created by the entrepreneurs of the industrial phase
Neo-classical theories
These theories emerged due to the criticisms of the classical theories. I noted that the neoclassical theories say that the economic phenomena can be consigned to the occurrences of pure change, and the effects of results of the changes on the other market factors (Parker, 2018). A critique of these neo-classical theories is that the aggregate demand ignores how unique the individual level of the entrepreneurial activity can be.
References
Băhnăreanu, C. (2019). WORLD ECONOMIC FORUM 2019: GLOBALIZATION 4.0–A BETTER VERSION. Strategic Impact, (1-2), 79-82.
Espiritu-Olmos, R., & Sastre-Castillo, M. A. (2015). Personality traits versus work values: Comparing psychological theories on entrepreneurial intention. Journal of Business Research, 68(7), 1595-1598.
Leyden, D. P. (2016). Public-sector entrepreneurship and the creation of a sustainable, innovative economy. Small business economics, 46(4), 553-564.
Parker, S. C. (2018). Entrepreneurship and economic theory. Oxford Review of Economic Policy, 34(4), 540-564.
Schaper, M. (Ed.). (2016). Making ecopreneurs: Developing sustainable entrepreneurship. CRC Press.