Entrepreneurship Impact on Productivity

Entrepreneurship is important for many reasons, not all of them quantifiable. New enterprises can supply a growing economy with new wealth and new jobs; they can create better jobs or bring whole new industries to emerging markets. They can open up new cultural possibilities in countries where risk aversion previously hampered entrepreneurial achievement. And a growing body of literature finds that entrepreneurship can have major, large-scale economic impact.
Being more productive at work isn’t rocket science, but it does require being more deliberate about how you manage your time.
When looking at what makes an economy grow in the long run, it is imperative to begin by examining how output is created. Firms use a combination of labor and capital to produce their output. Labor consists of the workers and employees who produce, manage, and process production. Capital describes both the ideas needed for production and the actual tools and machines used in production. Ideas and other intellectual property are called human capital. Machinery and tools are called physical capital.
Productiveness increases the overall efficiency of an organization. When the efficiency of the organization increases, the production capacity of the company is utilized to the optimum level. Thus, all resources are used in an effective and efficient manner to get the best possible results. As is often indicated by business, the more products you make, the lower your overhead, and the higher your profits.
Increased production due to efficient utilization of organizational resources leads to a lower cost production resulting in better sales and profits. If the profits of an organization shoot up, it increases the confidence of investors in the organization. Moreover, the share value of the company increases. Due to this, the reputation and goodwill of the organization increases.
Similarly, the business can share a portion of its profits as a result of enhanced production with its employees. This boosts the morale of the employees as they get to enjoy a part of the profits and the satisfaction of a job well done. As a result, their working efficiency tends to increase which in turn, further increases the production of the company. As you can start to see, there is a snowball of business success that starts with increased productivity.
Productivity is much more important than revenues and profits of the organization because profits only reflect the end result whereas productivity reflects the increased efficiency as well as effectiveness of business policies and processes. Moreover, it enables a business to find out its strengths and weaknesses. It also lets the business easily identify threats as well as opportunities that prevail in the market as a result of competition and changes in business environment.
A company can increase its own business productivity by making suitable changes in its business process and policies in order to improve the weak areas and capitalize on strengths for betterment. Similarly, an organization can formulate strategies to turn threats in to opportunities. This results in increased profitability and stability which is vital for the continued success of any business organization.

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