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Entrepreneurial Capitalism – Skills Acquisition, Community Empowerment and Microfinance
What is the strategic relationship among numerous resources, human development and financial development? What is the critical and ideal connectivity between individuals’ capital and financial advancement? Exactly why does income inequality persist in spite of significant economic growth? What are specific sure paths to social mobility? What are some sure ways to the middle class-the most crucial stabilizing force in all communities? Some responses to these nagging policy questions loom large. It also inform current debates on prudent policy options to cope with the intractable problem of higher joblessness. This is happening among graduates from organizations of higher learning in developing countries overall.
A meta-analysis of existing intellectual, literary works implies income inequality is continual. This is happening in both developed and developing countries in spite of evident and significant economic growth. There are many theoretical, structural and empirical causes of the widening gap between a return to capital and labor. On the one hand, and compensation to management and employees on the other. For instance, capital happens to be more productive, more compact. It also receives very favorable tax treatment that works in many jurisdictions.
More, international competition, invention, slower efficiency growth, and the minimum rate of technical substitution may be depressing wages even in developed countries. Furthermore, the advantages of globalization continuously accrue more unevenly to highly skilled labor compared to low skilled labor. Periods of financial development tend to correlate with growing income inequality because various economic companies, as well as people, do not grow at the same speed.
Individual capital analysis
The individual capital analysis deals with obtained capabilities which are developed through formal and informal education at school and home, and through at work working out experience, and flexibility and long life in the labor market. Please note that nations, as well as people, have portfolios of distinctive competencies that derive from resources and abilities. Many countries in the developing nations have lots of resources. But they lack capabilities and the ability to put them to productive uses.
Total ownership of resources alone is an essential but not a sufficient condition for financial growth. The functional human capital that manifests in enhanced efficiency and advancement is the critical and ideal connection between resources and economic growth.
Numerous labor market experts and interpersonal observers are apt to indicate the apparent lack of requisite knowledge and employable skills in high demand. While this may be true, lack of practical education that results in employment is only part of the problem. It is considerable and accumulating empirical evidence suggesting that lots of-of the employed university graduates go without pay or regular reimbursement for extended periods. While others are on contract employment with little income without any employment benefits or guaranteed the ongoing job.
For that reason, the purpose of Skills Acquisition ventures is to help graduates and entrepreneurs take practical steps. Steps towards functional education, knowledge and skills acquisition, self-employment, self-reliance and financial independence. As specific paths to the middle class and upward social mobility, any knowledge and skills acquisition project must concentrate on producing entrepreneurs-a crop of graduates with a burning desire. for self-employment, self-reliance and financial independence. Graduates must have the necessary knowledge and skills of their specific deal. But other than that, business owners who are business informed with a demonstrable grasp of business management knowledge and skills. Remember that all entrepreneurs are business owners, but not all business owners are entrepreneurs.
Entrepreneurs are a particular type of business owners that assume every risk pursuing revenue and financial freedom. Without the entrepreneurial class, other factors of production-land, labor and capital including technological innovation remain inactive and are categorized in our profession-financial mechanism as non-performing assets. As some specialists effectively put it, once you choose to work for yourself, you never go back working for someone else. Generally, people do not plan to fail, and they fail to plan. Furthermore, freedom whether spiritual, financial or political is indivisible and must be pursued insistently. The passionate drive toward economic freedom is the critical difference that sets business owners apart.
The idea of Skills Acquisition as a vehicle for community empowerment and growth is not new. The views, principles and problems are more developed in the relevant educational fiction.
Certain Operational Guidance
Many new ventures not succeed. Consequently, an essential objective of practical skills acquisition ventures is to assist new entrepreneurs in reducing the failure rate of new ventures. Business owners should have a substantial reach of business principles like effective management of people, process and products. Furthermore, entrepreneurs who take on new business projects should continue with a recognized probability of success.
Since you know, many non-business majors like architects, dentists, pediatricians, and attorneys, etc. undergo university without taking required business courses. However, upon graduation, they become small enterprises of private practice. These inadequacies are then made up in a hurry through on the job training or hiring business managers. Nevertheless, without a working knowledge of the fundamentals of business enterprise, small enterprises become completely influenced by business managers. An agency problem arises when the interests of business owners are varied from the benefits of business managers. This doesn’t matter whether they are full time employees or consultants. Organization problem aside, small business owners must know what the numbers mean to provide effective leadership, oversight and control.
A preliminary evaluation of failed small enterprises indicates a typical pattern; Lack of attention to the 3Ms of business enterprise: Money, management and marketing. Furthermore, many small businesses ignore the business entity principle. The exercises of a business should be documented separately from the practices of the owners. Indeed, the individual activities of an enterprise owner should be separate and diverse from the activities of the business entity. Many small enterprises get into problems for failure to draw this difference. Particularly with regards to cash flows and uses of cash are resulting from business operations.
The progression of human capacity and the building of a continually growing pool of trained employees. There is also a need to embrace the culture of self-employment and self-reliance for employment and job creation. There is also a need to encourage the continuous upgrading. Not only for our domestic productive processes and capacities but also innovation. The adoption of new ways of doing things.