Should the government intervene to differentiate between different types of entrepreneurs?

An entrepreneur is a person who wants to take the risks and who wants to set up a business and risk taking is major thing in the hope of the profit. He is promotor who understands the requirements of the market and planned to start a business according to the market requirements. They have the power to think differently and do the things differently. They have know how about the industry and they can also know how to exploit the knowledge in an industry and how to create different business opportunities in the country. The entrepreneurs share their ideas freely among people and they have the urge to learn and grow to get more experience in the business world (Bjornskov, 2008)

Entrepreneurs are the pillars of the country and due to their efforts and their knowledge and the experiences they can take the country to a next level. They are an important part of the country and the government should stand beside their sides in order to support them as they are supporting the country and they are leading the country with their efforts. The role of the government in the intervention of the different type of entrepreneurs is important. The government intervention to differentiate among the different type of the entrepreneurs will help the government to support the entrepreneurs that are more adavnatageable for the economy.

Government Intervention:

Entrepreneurship has emerged as one of the most important factor and is the main focus of the public policy. Entrepreneurship is basically the engine of the economic growth of the country and it also helps in the employment creation as well on a broad system over the regional, local and the national level. To expand these strategies in the country including the innovation, entrepreneurship and the unemployment is necessary. These strategies help to overcome the problems of the entrepreneurship and helps the citizens of the people to take part in the encouragement of the different strategies include the entrepreneurship. One of the most common theme of the government policy is to stimulate the job and the economic growth of the country to overcome the problem of the unemployment. Over the past 35 years, in different part of the world the government has increased its interest in the small level business and in the entrepreneurships as to stable the country’s economy and to strengthen it and create new fields of the innovation, technology and the research in the country.

The trend of the entrepreneurship has increased with certain entrepreneurs who have invested in their business and have become one of the famous person in the world with the leading companies like the Steve Jobs of the Apple, Larry Page and the Sergery Brin of Google and the other entrepreneur as well has set the trend of the entrepreneurship in the country and has boosted the government of any country (Lee, 2013).

The government should intervene in different type of the entrepreneurships in the country but through a proper process and through different ways including implementing an entrepreneurial ecosystem. Government intervention is necessary as it supports the entrepreneurs.

If the government support the entrepreneurs then they can support the various factors that an entrepreneur requires to start a new business and to expand its ideas in the country.

Government supports the innovative entrepreneurs:

The government can support the innovative entrepreneurs in many different ways.

Financial Support:

If the entrepreneur wants any kind of the financial support that can lead their innovative idea to a new sky then government can help them and provide them the financial support for their business idea.

Creates communication and the cooperation between different private sectors and the researchers:

The government has access to all the departments so government can help the entrepreneurs to link with the private sectors and help them to reach towards their goals and the private sectors can modify their idea as well and can lead the entrepreneur to achieve its goals and the entrepreneurs can define the boundaries in which they are expanding their business. This can be great initiative from the side of the government towards the development of the entrepreneurship (Lee, 2013).

Reducing the regulatory burden on the entrepreneurs:

The government is taking initiatives for the entrepreneurs and it can reduce the regulatory burden on the entrepreneurs and can help the entrepreneurs to grow. Reducing the burden on the entrepreneurs means that the government can grant the permits to the entrepreneurs more quickly and they can get the permits quickly automatically and they can make the use of the technology greater in the different industries and this will help them to create the more innovative products and keep their company running with the best products they can produce.

Developing different IT tools that reduce the burden from entrepreneurs:

Different IT tools helps the entrepreneurs and help them to cope up with the different problems they had. If the government start to provide the online services then it helps to reduce the burden from the entrepreneurs and moreover with the development of the IT tools there is a scope for the entrepreneurs to produce the new products and in this way they can make their business more efficient.

Government helping the entrepreneurs to access different networks:

Different networks and good networks in the country help the business to grow and it helps the entrepreneurs to expand their business as well. The government can use the different tools to help the entrepreneurs to access to different networks and to build the solid networks with the help of the government:

Trade to different abroad countries: If the government conduct the different trade missions for the entrepreneurs then this will support the entrepreneurs and hey can access the new markets in the foreign areas and thus will help the entrepreneurs to expand their market and their product on an international level.

Enterprise Forum: Enterprise forum is the platform in which the government has set a one stop shop for the people who wants to get the access to the services and through the help of these services they can upgrade their business.

Government creates a link between the labor market and the education:

The government have control over almost everything and they can help the entrepreneurs by establishing link between the labor market and the education so in this way the entrepreneurs and get the qualified labors for their company and can get their desired job in their desired employment sector. It is significant for youngsters who have completed their preparation to get a new line of work rapidly and for there to be sufficient talented specialists for organizations.

Better collaboration with the establishment area

The administration and the establishment area made a set of accepted rules. A free questions advisory group will likewise be set up. These measures ought to improve collaboration in the division and forestall issues like unjustifiable conveyance of pay between the business visionary (franchisee) and the proprietor of the exchanging name (franchisor).

Retail Agenda

Client conduct and inclinations are evolving. An ever increasing number of buys are being made on the web. The administration's 2015 Retail Agenda depicts these and different advancements in the retail division. It additionally records the 20 understandings came to between the legislature and the retail part. These remember new thoughts for joined zoning for shops, social foundations and neighborliness organizations, and extra preparing for shop laborers.

Role of the government in stimulating entrepreneurial ecosystem:

The major things that a government can follow to stimulate the entrepreneurial ecosystem are as follows:

Make the arrangement of enterprising movement an administration need – The detailing of viable approach for pioneering environments requires the dynamic contribution of Government Ministers working with senior local officials who go about as 'institutional business visionaries' to shape and enable strategies and projects . (Lerner, 2010).

Guarantee that administration strategy is comprehensively engaged – Policy ought to be built up that is all encompassing and incorporates all parts of the biological system as opposed to trying to 'carefully select' zones of uncommon intrigue. (Anant, 1995).

Take into account characteristic development not top-down arrangements – Build from existing ventures that have shaped normally inside the district or nation as opposed to trying to produce new businesses from green field destinations.

Guarantee all industry divisions are viewed as not simply innovative – Encourage development overall industry areas including low, mid and cutting edge firms.

Give administration however delegate obligation and possession – Adopt a 'top-down' and 'base up' approach degenerating duty to nearby and provincial specialists.

Create strategy that tends to the necessities of both the business and its supervisory group – Recognize that private company arrangement is 'value-based' while enterprise approach is 'social' in nature (Anant, 1995)

Arguments against government intervention:

Government intervention is necessary but in some areas where the government intervention is required and does not harm the entrepreneurship. The main areas where government intervention is necessary includes the; National defense for the general taxation of the goods. To provide the basic necessities of the education and the health care, to limited the monopolies power, environmental regulation and the protection and the regulation of the workers and their rights. These are the main things in which the government intervention is necessarily important but there are some areas where government intervention is not necessary nor it is required and these may also be called the disadvantages of the government intervention. The major disadvantages of the government intervention include the following:

Failure of the Government:

Failure of the government shows that how the government intervention can be a problem for the entrepreneurs. For example; if the government take a decision for an entrepreneur on short term political consideration then maybe the short term decision can lead to the consequences. If the government decide to protect the new entrepreneurs from the international competition then after sometimes it is necessary or the entrepreneur to compete in the international market because of the less stable economy of the country then the government will fail in the protection of the new entrepreneur.

Lack of the incentives for the entrepreneurs:

When the entrepreneurs runs the business in the free market then they have the profit incentive so that they can develop new innovative products and there is the advantage of the cut costs as well in the free market but whereas when there is government intervention and in the public sector the profit incentive is not there for the entrepreneurs and there the entrepreneurs cannot produce the goods and this leads to the insufficient production of the goods and the services.

Less decision. Frequently government intercession in the economy (for example nationalization of businesses) has been related with less decision. Government delivered administrations have an imposing business model. Order economies, regularly had next to no decision as government chose what to deliver. Decision is a significant component of monetary opportunity and having the option to augment singular welfare. (Not all administration mediation prompts less decision.

Effect of individual flexibility. An expanding part of government mediation is through endeavors to move customer conduct – for example lessen blockage, improve wellbeing through diminishing smoking rates and a more beneficial way of life. This incorporates charges, conduct impacts and guidelines. Once in a while people can feel this is oppressive on their individual decision.

Wrong decisions of the government:

Sometimes the government is forced to take the wrong decisions due to the pressure from the political groups and the government do not spend much time on the development of the entrepreneurs and this leads to the instability of the entrepreneurs in the economy. Wrong decagons of the government sometimes lead to the recession of the entrepreneurs and they cannot grow properly in the economy.

Lack of the market knowledge:

The government does not know about the trends of the market and how the entrepreneurs ae tackling the market by producing the desired products for the customers. If the government intervenes among the entrepreneurs and gives them the command to reduce the product according to the government requirements then this will be a disadvantage for the government and the government does not support the entrepreneurs no the market economy and the trends of the market and the requirements of the customers. This is a problem for the entrepreneurs as they do not have the freedom to take the decision on their own and they cannot produce the product according to their requirements and the demand of the customers in the market.

Lack of the fairness of Government Intervention and Entrepreneurship:

The government cannot support all the entrepreneurs in the market economy so there is biasness among the entrepreneurs and thus in turn affect the competition in the market and there is no perfect competition in the market as some companies lead the market while some entrepreneurs and their companies experience the downfall in the market and this is a negative factor the pope who are trying to compete in the market with the full strength (Krueger, 1990).

Inherited wealth of the entrepreneurs:

Some ties government take the wrong decision by investing in the companies and to the entrepreneurs that have the inherited wealth and they do not require the support an the investment from the government but still government invest in their organization whereas the government should invest in those companies where there is lack of the investment an they require more investment to run their business properly an in this way they can compete in the market but sometimes the government take the wrong decisions and they do not know where to invest and how to invest.

Lack of the government support for the infant industries and the entrepreneurs:

Sometimes the government cannot protect the infant industries and the entrepreneurs just because they cannot support the economy of the country and this is a wrong decision for the infant industries s sometime these entrepreneurs take their industries to next level with more initiative and unique ideas but sometime the lack of the government intervention among the infant industries is also a major issue as government should not only support the large business but also support the small business as well so that these small business can also compete in the market.

Conclusion of Government Intervention and Entrepreneurship

The government intervention has benefits for the emerging entrepreneurs and government support and connections can help them to expand their business on global level but there are more negative points of the government intervention then it has positive pints and in some areas the government intervention is necessary and important but in some area it is necessary but still if there is government intervention then will affect the entrepreneurs negatively and have negative impact on them and they cannot succeed in the economy and cannot take their organizations to a next level. Government intervention has some pros and cons but the free market economy is more better then the public sector economy and the entrepreneurs having the access to free market have more advantage then the entrepreneurs working under the intervention of the government. So the above discussion shows some of the favor of the intervention of the government in different type of the entrepreneurs in order to differentiate the different entrepreneurs and some arguments are against the government intervention in different types of the entrepreneurs.

 References of Government Intervention and Entrepreneurship

Anant, T. C. A., Basu, K., & Mukherji, B. (1995). A model of monopoly with strategic government intervention. Journal of Public Economics, 57(1), 25-43.

Bjørnskov, C., & Foss, N. J. (2008). Economic freedom and entrepreneurial activity: Some cross-country evidence. Public Choice, 134(3-4), 307-328.

Chen, S., Sun, Z., Tang, S., & Wu, D. (2011). Government intervention and investment efficiency: Evidence from China. Journal of Corporate Finance, 17(2), 259-271.

Krueger, A. O. (1990). Government failures in development. Journal of Economic perspectives, 4(3), 9-23.

Lerner, J., & Schoar, A. (2010). Introduction to" International Differences in Entrepreneurship". In International differences in entrepreneurship (pp. 1-13). University of Chicago Press.

Lee, S. H., Peng, M. W., & Song, S. (2013). Governments, entrepreneurs, and positive externalities: A real options perspective. European Management Journal, 31(4), 333-347.

Massel, M. S. (1962). Competition and monopoly. Challenge, 11(1), 33-34.

Poynter, T. A. (2013). Multinational Enterprises and Government Intervention (RLE International Business). Routledge.

Poynter, T. A. (1982). Government intervention in less developed countries: The experience of multinational companies. Journal of International Business Studies, 13(1), 9-25.