Entrepreneurship: some considerations

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📝 Original Info

  • Title: Entrepreneurship: some considerations
  • ArXiv ID: 1110.5518
  • Date: 2011-10-26
  • Authors: Vitor Joao Pereira Domingues Martinho

📝 Abstract

In this work it is presented some considerations about entrepreneurship. Most of these questions are linked with Portuguese context. Portugal has some particularities, namely because the asymmetries between the littoral and the interior. This situation carried out some problems that complicate and prevent the appearance of new innovated business. In a situation of crisis like that we have today this context can become a really problem to solve some questions.

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The European Union as a whole urgently needs entrepreneurs to be more competitive (European Commission, 2010). It's a good sign the fact that most young people show interest in pursuing a career in entrepreneurial future. However, it remains concerned that the trends have not undergone major changes since 2004, particularly as regards the willingness to opt for self employment over employment for others.

The northern countries of the European Union are more interested in being entrepreneurs, unlike the southern countries, not to mention in the CEECs (Central Europe and Eastern Europe) which clearly show several obstacles to be entrepreneurs.

The fact that the northern countries are more willing to take risks and be entrepreneurs have much to do with his capacity for organization and with his rigorous functioning of economies and societies. In a society lax in its organization, the entrepreneurs as good as they will always be difficulty in enforcing their business.

Only recently talking with a friend he told me that the northern countries of the European Union are truly an inspiration to us all and we would have much to learn if we spent there and occupy some of our time to analyze their styles life and how they overcame difficulties older. He told me that my friend actually many of us end up going through those countries, just to realize how they are organized and function, but then we have great difficulty in applying their reality in our day to day, because what they practice is part of the collective will and not of individual wills. Then we can also go there and bring what suits us and ignore what does not, trying to make a collage, to succeed, our way.

For these reasons, we considered relevant to present the twenty two approaches as set out below (Martinho, 2011).

Portugal in 2007, had about 1.2 million businesses, with 3.8 million employees and a turnover of around EUR 350 million (INE, 2010). The trade and services sectors are the largest number of firms and employees. Moreover, the industry has fewer firms, but has proportionately more people employed and a higher turnover. This is clear demonstration of the importance of industry to the development of any territory, or a region, country, or an association of countries such as the European Union. Moreover, there are several economic theories that link the industry as the sector’s economic engine. Keynesians pointed to the industry as a sector with growing economies to scale, with capacity to produce tradable goods (which can be exportable) and internal dynamics that can positively influence other sectors of the economy. Therefore, the industry appears to be a good sector for economic development and other sectors appear to have also its importance.

In areas where development is more difficult, as is the case in rural areas, is the interconnection between the various sectors of the economy that may arise in new business. So today most of the European policies directed to rural areas come here to promote the development of an integrated manner, ie, to promote the emergence of businesses that are able to combine agriculture with the environment, and agriculture with tourism, or even agriculture with industry (not least the food industry). And in these territories is urgent new ideas appear, so the good preparation of action plans with public funding is essential.

Sometimes good ideas are close to us and in many cases just a few days we travel by train in Europe to see how our European neighbours do for many sectors of the economy.

In 2007, in Portugal, most of the companies were created in the services sector and the lowest in the industry (INE, 2010). This, beyond what has already been said on this subject, has much to do with the ease with which generate business services, many with small investments, unlike the challenge in implementing ideas in the area of industry that is a sector usually associated with more substantial investments.

But it is difficult to find a good idea and then implement it, is no less painful to keep it and make it back for periods more or less conducive to the planning of the business. In 2007, in Portugal, only 72.8% of firms set up is that managed to survive the first year, 53.8% survived until the end of 2nd year and only 47.1% that is able to reach the end of the third year. Here turns out to need to come good ideas, planning them very well and then go along with conviction. A positive attitude on these things can be the most crucial factor for ideas to remain and succeed.

If we analyze survival rates by sector notes that the industry is the sector with the highest survival rates in the first year and construction with the highest survival rates to 2/3 years. Services are the sector of the economy with lower rates of survival. This is again a reflection of what has been said above, ie the industry, unlike the services, typically require larger investments and so when it moves forward with an idea and creates a

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