Entrepreneurship can be considered a prime determinant of the level of economic performance. The proof of its structural and dynamic role in the economy in its comprehensiveness, as well as its classification, is no longer proof of the feasibility of entrepreneurship. Rather, the discussion turned to the necessity to support this wide range of entrepreneurship projects, which suppose the actual presence of an appropriate and stable environment conducive to encouraging entrepreneurs to move forward with their projects, and in itself depends on the stability of the macro-economic framework and the adequacy of the general framework conditions.
One of the inspiring statements by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Ruler of Dubai, is that “the function of governments is to create an environment in which people can achieve their happiness” and thus emphasizes that the environment created by governments for the happiness of people is one of their compulsory functions, not a luxury.
Since entrepreneurship is a feature of the society seeking economic renaissance, then the positive and supportive environment for investment and government-created business is doubly important and generally linked to the strategic objectives of economic growth, as well as the availability of influential factors in the creation of an entrepreneurial environment.
Influential factors: Entrepreneurial people
Without these outstanding people there will be no creativity, no entrepreneurship. The entrepreneurial mindset is centered on the “means-strategies” that entrepreneurs must follow when dealing with small businesses, especially in the uncertain circumstances surrounding the project at its inception, and the new products or services it offers.
They have a keen intuition and a special ability to analyze the conditions and future visions that help them anticipate what will happen in the future.
Although it is difficult to estimate such ambiguity as a result of rapid development, the leader is different from others in his/her ability to know priorities, to strike the balance between creating profitable operations and adopting the right assessment of future opportunities.
For this reason, the entrepreneur uses Value Present Net to estimate future cash flows, determine the value of risk, how to reduce costs, and thus seek to reduce market challenges uncertainties and aims at the refuge of the marginal market, Niches market, to have less competition with others.
In addition, the entrepreneur does not offer multiple products at the same time, which leads to the difficulty of managing such a risky marketing step. Instead of spending at least two years in a multi-destination project, the entrepreneur can achieve this by focusing on one product for six months, without neglecting the balance between human resources and material resources.
In this case, the entrepreneur needs a promising open market so that he can evaluate his business and performance, compared to other successful projects, as well as the availability of e-financial services and other financing and marketing facilities.
Therefore, the leader has to improve his competitive position; through the approach of technological development methods, the promotion of production procedures and quality in order to maximize its characteristics, and its productive and service advantages, which generates customers’ conviction that these products differ from those of the competitors.
In addition to this, the analysis chain consumption must be considered, which relates to the positive differentiation of products, and the pattern of the competitors’ thinking methods to achieve market superiority.
The important role of business incubators:
Business Incubators contribute to creating mental images of success for junior entrepreneurs seeking to enter the business, for the benefits offered by the incubator are essential to the success of small businesses. The goal of incubators is not funding necessarily, as much as striving for large facilities and soft loans for business growth and enterprise prosperity, such as the provision of simple financing of certain aspects of emerging projects and good office space for emerging projects that do not have a workplace, as well as providing advisory and professional services to these projects to accelerate their maturity and attract initial profits.
This is in addition to the creation of basic infrastructure of roads, transport and communications.
The initial stages of launching startups are critical and difficult, with many problems. Business incubators are the ideal solution for incubating emerging projects and contributing to their savings, with the necessary technical and professional support.
Other factors in favor of entrepreneurship:
Rewards are one of the latest trends targeting entrepreneurs. Investors seek to attract entrepreneurs to participate in competitions and events to showcase their innovations and creativity, and then win support or offers for their project structure.
In addition, property rights are the most important things that entrepreneurs must take care of before launching a project, by clearly defining the concepts of “ownership” and “partnership” in this project; it is definitely better for the entrepreneur to own the project, which offers him greater flexibility in making decisions, courage in traveling different roads, and constant pursuit of development.
There should be abundance in size, field, or the customer network. As the returns increase in terms of the size of the company, the diversity of its products, or the size of its network of customers grows, the better it is to seek rapid growth. As the scale increases profitability, the fruits of development will soon begin to grow.
This is in addition to the ability to retain customers and resources; rapid growth appears to be the best choice for many entrepreneurial companies, since most customers tend to stay with the companies they started with, either to avoid change or because of the cost of switching to another company. Thus, rapid growth helps the company secure a distinct location or control the geographical location that can only accommodate one giant store even though the local economies’ abundance is limited.
Entrepreneurship is growing competition, because competition when it grows and expands rapidly may force the company to expand similarly. In markets where one company often sets industry standards, such as the PC software market, rapid growth enough to stay ahead might be the only hope for an emerging company.
In addition to these factors that influence the entrepreneurial environment, it is also important to remember that education and the culture of society, as well as the level of per capita income and the cost of the project, all play a role in influencing the entrepreneurial environment in order to achieve regional balance in society for the benefit of the economic development in relation to trade, industry, services, etc..
These projects also seek geographical spread, greater competition in the labor market, as well as their ability to cover the large part of the market’s needs, as it is the key factor in building the production and economic structure in various countries of the world.