Urbanization requires a strong base for entrepreneurship. This is because one of the prerequisites for the creation of jobs is the availability of robust local businesses. The presence of local businesses encourages the community as well as outside visitors to buy from the local producers. To get more business traffic, buy TikTok views. Entrepreneurship is a common word in every town nowadays. Not only leaders of town but also politicians say they would ensure the growth of the towns by attracting both local and foreign investors while promoting the spirit of entrepreneurship. How can they achieve this? There are several ways to encourage the spirit of entrepreneurship. Every sector or even organization is encompassed in the process; the government, private sector, and even community level workers.
Role of the government in promoting entrepreneurship
1. Decreasing business costs by modifying zoning codes.
Have you heard of zone codes? What is their impact on entrepreneurship? It has been proven that more than 50% of the youths haven’t heard of the zone codes, let alone knowing what it is and how it promotes the spirit of entrepreneurship. These are places that have been allocated for businesses that are just starting up with the aim of encouraging more startups. In some areas, the zone codes allow mixed usage of buildings where a shop owner runs her business on the first floor while staying on the upstairs? This allows him to readily access his business, thus increasing his productivity hours. Moreover, in some cases, the areas through the application of license allow for turning a vacant home into a food store. For a startup, renting or even buying and constructing structures may be an uphill task. Therefore allowing for creative usage of space reduces the barriers for small business owners.
2. Simplification of local regulations for starting new businesses.
Now, though many youths talk of starting their business, a very small percentage of the youth is aware of the requirements of doing so. Even worse, the requirements and regulations are not easily available since the sites haven’t been made known to the youths. In most countries, entrepreneurs are forced to move from one government office to the next in a bid to fill out forms and get a license for starting a business. The government can have a website with procedures and steps for entrepreneurs to start businesses. The website should help them know how to fill out the forms, whom to contact, and other necessary steps. Moreover, examples of already established businesses should be provided so that the entrepreneurs can be motivated to emulate their predecessors.
3. Have concerted effort in economic gardening.
Have you imagined the number of businesses that fail every year? How is the government handling that? It’s very funny that while more than 60% of firms that get into business fail after three years, the government continues to encourage the youths to get into businesses without doing anything different to change the business environment. While getting into business is the first step to entrepreneurship, business growth presents a new set of challenges. To promote the business, they should be boosted by giving them incentives and tax holidays. It will reduce the cost incurred in production; thus, the profit they make can be used to expand to other areas. With economic gardening, the government will see a boost in the spirit of entrepreneurship.
Role of the Private sector in promoting entrepreneurship
1. Promoting access to small business loans and grants
One of the major obstacles in starting a business is getting a reliable source of funding. Through banks, community development corporations, and other financial institutions, entrepreneurs can have this problem solved. Loans can be given to small businesses with the intent of encouraging others to get in. Small community-based organizations may also come up to help their members. Critically, few women and youth are into entrepreneurship. Therefore through the loans and platforms offered to them, they can easily establish themselves amongst the greatest entrepreneurs.
2. Give your employees autonomy
The key to employee satisfaction is autonomy. Having employees with control in their work environment allows them to come up with more ideas on how to improve the company. By measuring the outcomes instead of input, the culture of entrepreneurship is encouraged. By sharing the goals with the employees, they will know what to do and what is expected of them. Moreover, some companies even allow their employees to have 20% of their time working on something they love. This is how innovation is achieved. Moreover, entrepreneurs who come up with good ideas should be rewarded so that others can have a reason to get into entrepreneurship.
3. Have a method for submitting new business ideas
The first step to encouraging the entrepreneurial culture is to announce the process of taking new ideas. Moreover, it also involves big firms sponsoring small firms to invest in different areas. Through regulation of business laws, big firms can be promoted to partly buy the small firms so that the small ones have a strong capital base to invest in their areas of concern. For instance, in 2020, a Kenyan startup was partly purchased by Tesla. Through these, the firm got the required capital base to attack other sectors while also maintaining its autonomy. Having the small firms completely purchased by a big small firm may kill the small one as its autonomy is not maintained.
4. Allow room for failure
Innovation only happens if youthful entrepreneurs know there is room for failure. Now, apart from America, other countries do not have room for failure. There are systems that only reward those who follow the normal process. Entrepreneurial culture thrives in an environment where there is experimentation and learning above any other thing. If there is no aim, then trust me, people aren’t trying new things. Thus no innovation will occur.
Its importance is to encourage entrepreneurial culture. Most of the developing countries have a large percentage of unemployed population. Through entrepreneurship, this problem can be brought to a standstill. Let’s all be part of this just so we see ourselves on the other side of the economy, hey.