Current statistics show that against all odds, thriving economies are those that foster entrepreneurship development even in a time where economic crises have enveloped the entire globe. It goes without saying that the right entrepreneurial environment, which emerges as a tapestry of skills and talents, can play a significant role in leveraging a country’s economy. This week we will be discussing the three ingredients that promise to get the wheels going in the right direction for a flourishing entrepreneurial economy.
The key ingredients that can give any economy the much needed boost are a regulatory environment that put the right rules into effect, encouraging prospects for financing and last but not the least, the entrepreneur himself. The following is endeavored at achieving a thorough understanding of the first entrepreneurial building aspect, conducive rules and a regulatory environment. A regulatory environment in the context of entrepreneurship can be defined as the way the society treats entrepreneurs and accommodates failures. In addition, it also depends upon the influence the government has over the economic landscape as it can aid or obstruct the development of an entrepreneurial environment. As far as the area of rules is concerned, the government should take measures to review any rules and regulations that are posing a threat to the development of businesses. A rule review process should come into effect making it mandatory for all the public sector agencies to review their regulations after a certain period of time. This implies the revision of rules to achieve consistency at all levels with the environment. In addition, it is imperative to understand that there are certain laws in the legislation adhering to which a higher degree of discipline can be achieved in the specified business processes. However, it is vital that these laws are competent for the existing system and the outdated ones that are no longer make sense should be quickly removed or changed. The way the government handles business can make a huge difference. If government officers continue to be conservative in handling the issues, entrepreneurs are most likely to get discouraged. It is a common occurrence that business plans get rejected as entrepreneurs fail to get the desired response from government officials. This is because entrepreneurs fail to achieve an understanding of the rules or just cannot comply due to complexities. How the government as a whole treats entrepreneurs is as important as how each rule is applied. For example, entrepreneurs can be disheartened when they are asked to get approval from one department before the next one even looks at their proposal. Sadly, because of such uncooperative behavior, somewhere along the process, an entrepreneur’s strong will and the desire to succeed vanishes. To get the things in the swing, instead of dismissing an entrepreneur’s request because it fails to comply with the requirements, officials should try to maneuver around the problem while ensuring conformity with the rules. Simply put, the government should serve as assistance for entrepreneurs, helping them to effectively run their business. The same goes for government officials who should view themselves as partners of private ventures rather than policemen using power to make others obey laws. This change in mindset will lead to an environment where mistakes and resulting failures will be constructively perceived triggering a desire in individuals to do a better job next time. It will be a good idea to have an agency that will only be responsible for assessing the policies and rules that are to be implemented. This body will not only address feedbacks or complaints forwarded by the civil servants but will also look into any issues that will hinder the smooth conduction of business. The basis for the development of rules should also be taken into consideration as they can potentially influence the creation of an entrepreneurial environment. Thriving entrepreneurial economies around the world are the ones that develop rules for SMEs because if they work for small to medium enterprises, bigger ones also find no difficulty working with the same specified set of rules and regulations. However, the opposite is not true. It gets exceedingly difficult for smaller companies to survive in an environment that uses bigger enterprises as the basis for its rules because it gets immensely challenging for smaller companies to comply with them. By scrutinizing the existing rules and making them apt for smaller enterprises, a more favorable entrepreneurial environment can be achieved. Not only will it help smaller companies to do well, bigger enterprises will also be encouraged to work in an entrepreneurial manner, hence creating a stronger and more flourishing entrepreneurial economy.