What Factors Are Influencing Growth of Entrepreneurship?

Updated: Dec 6, 2020

Entrepreneurship is getting more popular everyday. A lot of people are lured to the benefits of owning a business, despite its possible drawbacks.

Digging deeper, what factors could influence the growth of entrepreneurship?

1. People's perception of entrepreneurs as influential, powerful (and has control over their lives), and rich. It is undeniable that once we hear the word 'businessman' or 'businesswoman' we instantly associate words such as influential, powerful, and/or rich to these people. It is somehow influenced by what we actually see within our communities, stories we hear, or news we'e watched on the television or social media. I'm pretty sure that many of us know one or two of these types of people who run their own business.

In terms of being influential, entrepreneurs are more likely to be perceived as possessing expert knowledge or skills on their field of enterprise; hence they have the capabilities to influence the lives of others. This is perhaps the primary reason why they started their own business. People turn to them for help to their problems. The solutions are then sold in the form of products or services.

The word power have various meanings, especially when it comes to leadership and management. Generally, it is viewed as a person's ability to influence the behavior or thoughts of others with the goal to accomplish preset goals and objectives. But power, also means:

  • ability to punish or discipline (coercive power),

  • ability to give reward (reward power),

  • ability to form meaningful connections or networks (connection power),

  • possession of official authority to create an atmosphere of obligation and responsibility among others (legitimate power),

  • ability make others accept and value you (referent power), and

  • possession of invaluable knowledge, expertise or experience (expert.

Related Post: 6 Types of Power In Leadership & Management

Wealth is also a dominant idea associated with businessmen. Who wouldn't want money or wealth anyway? We could do a lot of things with it like, providing educational scholarships to the less fortunate and talented students, giving donations to spiritual ministries and medical missions, going on a vacation with loved ones, helping somebody in a financial crisis, building our dream house, sending our kids to good universities, etc. Accumulating wealth is a privilege not everyone has. If you have it, may you not forget to contribute to humanitarian services.

2. Accessibility of business education. The propagation of business knowledge through education can occur in various settings and among different class of learners. It can be taught within the traditional learning setting such as within universities or colleges, or in other venues where organizers can deliver specific lectures or seminars, like those related to the baking or clothing industries, to the participants.

It can also take place in secondary education institutes or even at work-- such as in the case of cooperative education where a person is able to get educational credits while performing a paid job related to his field of career or educational goals.

Learners could range from students to professionals who want to enhance their knowledge and skills or to shift careers. Entrepreneurial education has become more accessible these days because of technology. There are various online courses you can take to learn-- depending on your interests.

3. Growth of service businesses. In general, industries are classified into two (2) broad categories: goods-producing and services-producing. Service businesses include, but do not limit to:

  • altering or maintaining the physical environment (landscaping, waste management, decorating, etc.)

  • personal services (beauty spas, salon/ barber shop, tattooing, pet grooming, childcare, professional organizer, wedding planning, etc.)

  • professional services (legal counseling, accounting, health/ medical consultation, psychological counseling etc.),

  • educational services (tutoring, online courses, etc.)

In the past decades, the service industry continues to grow. Everywhere you look, you'll find clustering service businesses.

This can be primarily influenced by the fact that it is now easier to start a small business because it requires less capital. The micro problems that people encounter everyday create business opportunities to those who have the skills and knowledge to provide solutions.

4. Advancements in technology. Technology makes living fun, exciting, entertaining, and easy-- these are the primary reasons why we fully embrace advancements in technology. As a result to a growing demand for such things, business-minded individuals see gaps needing to be filled.

In addition, small business owners now have the edge to compete with larger companies because of technological advancements. Most small business owners may not be able to produce large-scale services but it doesn't stop these passion-fueled individuals. As long as they have a market to serve and could gain profit, they might as well continue to do it as long as they want and pass it to the next generation--their children.

Furthermore, consider how personal computers, laptops, smart phones, internet connection, social media, fax machines, expedited deliveries/ couriers, online stores, and others have developed and evolved through the years! All these clever innovations support entrepreneurial growth.

There are even people who's offices are wherever they want to make it. Think about bloggers, vloggers, forex and stock traders, online marketers, online ESL teacher, etc. All these become possible because of technology.

5. People's innate desire for freedom. People who choose to become self-employed have great desire not only for financial freedom but for lifestyle freedom as well. They most likely want to be able to:

  • put their ideas into action without asking for a boss' opinion or permission,

  • determine how long and where they'd work, and

  • spend precious/ leisure time with their loved ones and/or friends whenever they want.

6. Accessibility of international businesses. Doing business, including outsourcing and selling products or services, with people across the glove isn't that hard anymore. This is somehow anchored with the rise of technology too. Businessmen can now do business transactions without frequent travels, which can be significantly costly depending on the distance between people.

Outsourcing overseas is very common nowadays because many emerging countries undeniably offer lower costs for production of goods and/or services. This means more profit for the business owner who'd directly sell these to the market.

Meanwhile, the number of potential customers is also widened in the present business world, especially in the case of digital products. With just a click of the mouse, people can easily purchase products or services and those can be delivered to them faster or even instantly.

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