Planning Local Economic Development Process †MyAssignmenthelp.com

Question: Discuss about the Planning Local Economic Development Process. Answer: Introduction: Entrepreneurship can be termed as a set of synchronized activities for establishing a business or businesses on own by taking financial risks with the objective to earn sufficient profits. Entrepreneurship is important for development and growth of the country as it resolves various economic issues and encourages youth for doing something unique to accomplish their dreams (Drucker, 2014). The present study is based on an evaluation of the importance of entrepreneurship in the Australian economy by considering their current economic situation. Further factors that promote or hinders entrepreneurship will also be discussed. The study will be supported by relevant economic theories and examples by considering literature of previous research scholars. Entrepreneurship in the Australian economy is important to maintain its economic prosperity, and for this, it is necessary to promote entrepreneurship and start-ups. Australian policies performed well in boosting entrepreneurship in the country, but very few startups can maintain to grow drastically. Countries future depends on the factor that how quickly they are able to adapt the change (Schaper and et al. 2016). Technological and other changes bring innovation and job opportunities which are necessary for the growth of the individual. In accordance with the viewpoint of the commission of the European communities, 2013 entrepreneurship means a mindset which is necessary to create and developed economic activity through innovation and risk taking. Entrepreneurs play a vital role in the success of the countrys economy because they understand the need and want of the society on the basis of which creates opportunities for others and themselves also. An Australian report state that between 2006 -2011 startups provided more than 1.44 full millions full-time jobs in Australia as compared to other firms which had provided only 400000 full-time jobs (Pisheh and Moghaddam, 2016). It is clearly seen that start-ups provide 360% more job than other firms. A blend of science, entrepreneurship and creativity is the path of making Australia more secure and powerful in terms of economic prosperity. Further; Entrepreneurship promotes structural change and influences existing firms efforts to amend as per new conditions of the market. However; They are unable to make essential internal changes and do not have the ability for innovative destruction, but New business and existing firms can assist firms to get independent from being in the positi on of locked up. Furthermore, entrepreneurs can make completely cope up with new business and markets which will become the engines of future growth processes. In accordance with the study of Kirzner (2015), entrepreneurship performs a critical role in the growth and development of the economy as it resolves the primary of unemployment. In Australia, it is said that small business plays a vital role in job creation, so it is necessary to make favourable policies for encouraging small scale business to grow. There is a link between entrepreneurship and jobs creation. In order to boost the capitalist economy, it is essential to make environment competitive and innovative. Modern entrepreneurs think out of the box which makes possible for them to find out the more efficient solution of the complex problem (Bullough, Renko and Myatt, 2014). Economic growth and job creation are related. Some people assume that if we grow as an economy than jobs will automatically create, but it is seen in last several years that economy is growing without having an impact on job creation. It is significant to give economic stability to workers by giving good salary and good working environment so they can invest pay in themselves and their family. It is predicted by the World Bank that the world needs to generate 600 million more jobs as compared to 2005 just to hold employment to working age population ratio steady. Figure 1 shows the growth expectation at three levels. First one shows low growth expectation (0-4) then medium growth expectation (519) and the third one shows high growth expectation (20 or more employees). Only a few entrepreneurs can manage to achieve more than 20 or more employees mark. In comparison to another big economy, Australia performs above average (Galindo and Mndez, 2014). In accordance with the viewpoint of Autio and co-authors (2014) entrepreneurship improves productivity and introduces innovation in each sector. There are only two ways to increase the productivity of the industry either to increase the input in order to get more output or we can develop innovative ways to get more output in same input (Schaper ed., 2016). Our world is currently facing many environmental challenges like a side effect of green houses, climate change, maintaining biodiversity but through innovation in technological and in technological areas, it can be fixed. There are lots of social challenges like health, inequalities among others which can be fixed by entrepreneurship innovativeness. Innovativeness raises the living standard of people, and now it plays a vital role in determining growth and competitiveness. For example - In 1939 a new product named television was introduced, but experts said that television would never overtake radio. They thought people had no time to sit in front of the television to watch something. In the 20th century television becomes most influential and common gadget in the households of Australia. There are lots of example of innovation which influenced mankind like the first aircraft left the ground on 1903, mobile invented in 1973, laser in 1960. Figure 2 describes Australia is on the second position in the world on starting a business with an innovative product. This also creates motivation for others. The entrepreneurial activity required two things to get work done, firstly ability to work and secondly willingness to work (Leigh and Blakely, 2016). First one is achieved by proper education and training but the second one is achieved with the help of motivation. Entrepreneurs help their employees to get motivated and give their best towards the society and the organization. Motivation reduced employee turnover which leads to improving employment opportunities in the country (Kuratko, 2016). Sometimes it is necessary to bring a change in the system that can improve the efficiency of the work, but few people will not accept the good change in the system. That why it is important to convince them about the change which is possible through motivation. Distribution of necessity driven entrepreneurship and improvement driven entrepreneurship. It is clearly seen that in Australia, there is five time the ratio of innovative entrepreneurs who worked on new product as compared to the entrepreneur of normal business. This ratio is greater than the other innovative, driven economies. Factors that promote entrepreneurship in Australia Entrepreneurship is an approach of developing activities of the economy by taking risks, innovation, and creativity. Entrepreneurs drive opportunities that result to the construction of economic efficiency (Acs, Szerb and Autio, 2016). In order to maintain the prosperity of Australia and to attain sustainable growth of the economy, the Australian government is providing attention to introducing an economy that persuades innovative and creative ideas. The government is consulting with Territory governments and Australian State to identify program types and businesses that will gain from the supportive target. Entrepreneurs mostly introduce new tools and technologies and improve their product and services. There are several examples of drastic innovations established by well-known entrepreneurs such as Microsoft (Bill Gates), Apple (Steve Jobs). Entrepreneurs who introduce new innovations provide a vital contribution to the progress of the economy. Thus; Australian economy provides various funding plans with nominal interest charges to new start-ups. Further; they had introduced plans like venture capitalist who will provide expertise along with funds to support good business ideas. Competitive advantage is also created by entrepreneurs; they increase competition among businesses. By introducing new industries, entrepreneurs strengthen competition for current industries. As the prices get a low and diversified variety of products, consumers are benefiting (Leigh and Blakely, 2016). Thus; Australian economy is supported by law and regulations which restrict monopoly and provide new businesses fair chance for growth and development in the market. Further Australia is maintaining an effective entrepreneurship system where implementing a sophisticated approach is considerable, as it assists policy makers to consider entrepreneurial benefits in a systematic manner. It also promotes them to capture a wide perspective while considering from indicators view of individual and country entrepreneurial battle (Ribeiro-Soriano and Mas-Verd, 2015). Australians are good at developing new and creative ideas, either by science, technical or quality resources. However, people are not good at reallocating them into creativity and certifying their flow to raise firms productivity and global economic prosperity. Value gained from innovation must be captured in such a way that can safeguard prosperity, better standards of living, social enclosure and sustainability of resources. The entrepreneurial ecosystem in Australia is inclusive of several stakeholders determined by diverse desires and objectives, but together they encourage entrepreneurship. Including an encouraging ecosystem drives and helps people to set up their own start-ups. While creating such a positive environment, the government of Australia requires the private sector support, by introducing a sustainable ecosystem which is inclusive of teamwork with universities, several firms, and owners of new startups (Leigh and Blakely, 2016). The government of Australia is in favour of easing the relationships between firms in Australia and promotes them to help and create a sustainable entrepreneurial economy, and further, the economic growth developed form this is predictable. This all is attained by assembling entrepreneurs, banks, and private sectors, universities to have a positive discussion and to communicate the significance of the supportive economy to Australias prosperity. The European Union members stated have RIS (European Regional Innovation Scoreboard) that examines collaboration level among creative companies and any other company and the quantity of co-publications of the public private sector (Ribeiro-Soriano and Mas-Verd, 2015). Adopting collaborative measures alike to RIS can support territories and states of Australia to maintain a culture which is highly entrepreneurial and innovative. They also help in determining the areas which are required for policy making and developing the existing conditions of business in Australia. Australia is focusing on making technology entrepreneurship a priority, supported by entrepreneurship strategy and national innovation which identifies the contribution of schools and universities as drivers of entrepreneurial culture. With this approach, Australian government supports the development of technology companies by providing them convenient policy measures and programs. These programs and policies primarily aimed at firms having paramount capacity for growth and success. Along with this; they monitor entrepreneurial activity on an annual basis by presenting entrepreneurship in high-schools and colleges and motivating university students to get involved with diversified range of entrepreneurship programs. This strategy has been enforced to` encourage youth to think universally having exposure to the best international start-up ecosystems and cultures. Factors that hinders entrepreneurship in Australia Despite, there are several factors that hinder the process of entrepreneurshipin Australia. The primary factor in this aspect is lack of capital. Insufficient capital plagues new business, and also lack of cash flows complex the problem (Thomas, Painbni and Barton, 2013). Startup companies often have less or no cash flows. Australian banks have less or nominal policies for new startups. Further, when a company processes a product and is ready to sell, the problem arises from pricing (Komppula, 2014). If the price is set as low they low profits are generated and if it is set as high its lead to steady sales or creates a harmful impact on profits. Under the act Jumpstart Our Business Start-ups, it considers the problems of small business investments, helping through angel investors and crowd funding. Another hinder factor for them is poor management strategies. A creative entrepreneur skills and abilities do not essentially associate to be an efficient manager. There are several ways by which this dichotomy could rise. A product produced by the producer is beautiful from their point of but not considered the same by all, and if the entrepreneur is unable to identify it, in this situation, even management experts cant help (Leigh and Blakely, 2016). However, with a successful product, an entrepreneur might not hand over the management wheels to an expert in managing a start-up. Unskilled manager possibly recruits a poor management team which as a result leads to poor performance and lack of a business plan. According to the study of Audretsch and co-authors (2016), a small business startup has an exclusive product along with considerable market demand; it is likely to promote it a cost efficient manner. Inadequate market research can lead to improper planning and timing for introducing a product. Lack of understanding the market will result in spending more than earning. To remove and resolve this hindrance factors it is crucial to discover ways to establish productivity and entrepreneurship to maintain economic welfare in Australia Entrepreneurship drives creativity, innovation, employment and competition, which are essential for growth of productivity. The government of Australia is currently practising several entrepreneurial and modern policies in order to ensure the efficiency of policy changes (Thomas, Painbni and Barton, 2013). While creating an encouraging and combined ecosystem, there must be involved with the universities, private sector, businesses, and start-ups. Involvement and identifying of success can moderate perceptions and thoughts of start-ups of Australia. Australia has a great contribution in attaining the objectives of the World Bank and IMF meant for developing the worldwide shared welfare. Further, the country can maximize its economic efficiency through constructing an entrepreneurial economy. Conclusion The present study showcases vital role played by entrepreneurship in the economy. Entrepreneurs have the same positive effect on both short and long runs in the economy as entrepreneurs drive employment growth by creating new opportunities for jobs. The direct effect of employment is seen from the point of new business that occurs from the creation of new jobs. New businesses can boost up more efficiency and productivity. The tough competition among existing and new industries leads to the continued existence of the fittest. Although the total employment may reduce, and new business can boom productivity. Communities and government policies need to ensure to cope with up with the challenges so if one door is closed for an entrepreneur than the second one must open. The benefit of entrepreneurship is not illusory, but it shows the capability of the youngster and their dedication towards the work. Sustainable growth is achieved by job creation, competition and innovation which all entr epreneurs do. Entrepreneurship qualities must be present in young Australians to establish a sustainable ecosystem. Australia is an innovative nation and Australian always keen to adapt them with the updated technology. Australia is a big player in the world economy, and with the support of entrepreneur, it can retain its unique position. References Acs, Z.J., Szerb, L. and Autio, E., 2016. The global entrepreneurship and development index. InGlobal Entrepreneurship and Development Index 2015(pp. 11-31). Springer International Publishing. Audretsch, D.B., Lehmann, E.E., Paleari, S. and Vismara, S., 2016. 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