All categories

3 years ago

Discuss any five roles ofentrepreneurship in the economicgrowth of a country

Business

1 answer:

kozerog [31]3 years ago

7 0

Explanation:

1. Entrepreneurs create new businesses

Entrepreneurs are not the only ones who benefit from their enterprises. They give direct and indirect employment for several people in a country. Lack of employment is a big issue in several countries regardless of whether they are developed or not. Through employment, employers are effective in eradicating the chronic problem of unemployment in the country, this in turn creates a path for economic growth of the country. Entrepreneurial growth is seen as a vehicle for generating employment since it promotes both small and large businesses. Some nations that are more developed can be leaders in entrepreneurial activities. Developing countries such as Ghana can benefit from experiences of developed nations such as Japan, USA and UK.

2. Entrepreneurs add to the income of the nation

Entrepreneurs literally produce new wealth. Existing businesses may stay confined to existing markets and may get high returns. New and improved products, services or technology from investors enable the development of new markets and the creation of new wealth. The cascading impact of higher employment and better earning contribute to an improved national revenue because of taxes and higher government expenditure. The government can use these earnings to invest in other sectors that are struggling and for human capital.

2. Entrepreneurs add to the income of the nation

3. Creation of social change

Entrepreneurs offer new goods and services which directly support freedom by lessening dependence on outdated technologies and systems. This in turn improves the quality of life, boosts morale and economic freedom. If people have to stop working and travel far off for their needs, it would greatly affect their ventures, income and productivity. With needs taken care of and resources close by, they are able to concentrate on their jobs without worrying about the basic needs. They devote more time to work, hence bringing about economic development.

4. Economic and community development

Promoting small businesses does not require a lot of capital; meaning they can be started in semi-urban and rural areas. These businesses will create employment in these regions and therefore reduce rural-urban migration. Since a large population of Ghanaians live in the rural areas, the government should put in place measure to encourage entrepreneurship. Small businesses in these areas also use local resources and are convenient to rural and semi-urban areas.

You might be interested in

Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100,000 for the next 2 years, respe

Lena [83]

Answer:

$856,376.30

Explanation:

What is the terminal, or horizon, value of operations?

2 years, FCF 1 = 80,000, FCFC 2 = 100,000, Growth rate= 5%, WACC = 16%

==> 100,000*(1+0.05)/(0.16-0.05)

==> 100,000*(1.05/0.11)

==> 100,000*(9.545454(

==> 954,545

Calculating the value of Kendra's operations.

Years Cash-flows PVF at 16% Present value

1 800,000 0.86206 68964.80

2 105,000 0.74316 78031.80

2 954,545 0.74316 <u>709379.70</u>

Total value <u>856,376.30</u>

8 0

3 years ago

Dan, and Mike are brothers. They plan to begin savings plans when each is exactly 25. Each brother plans to save $6,000 per year

anzhelika [568]

Answer:

1. How much will Dan have in his traditional IRA account at 67? Follow the proper taxation for this type of retirement account.

A) Amount available to invest after taxes per month?

$500

B) Amount in account at age 67?

$2,813,492

C) Briefly explain the taxation on withdrawals from a Traditional IRA

IRA contributions are made before income taxes are paid, that is why Dan's monthly contributions are higher. The disadvantage is that Dan's plan will be taxed later.

2. How much will Mike have in his Roth IRA at age 67? Follow the proper taxation for this type of retirement account.

A) Amount available to invest after taxes per month?

$375 until 59.5 years old, then $500

B) Amount in account at age 67

$2,072,879

c) Briefly explain the taxation on the withdrawals from a Roth IRA

Roth IRA contributions are made after income taxes are paid, that is why Mike's monthly contributions are lower. The advantage is that Mike's plan will not be taxed later.

3. If both brothers are expected to be taxed at a 20% tax rate in retirement, which retirement plan will have the best after tax results?

In this case, since the tax rate is higher while they are working (25%), than once they retire (20%), the traditional IRA account could make more sense except that since the time span is very long, your account will accumulate a lot of earned interest. The total principal invested into the traditional IRA account is $252,000 and the interest gained is $2,561,492 and that part will be taxed once you start withdrawing money. In order to determine which account would be better, you need to estimate how many years will Dan and Mike live after retiring, the longer they live the best option is the Roth IRA account.

Explanation:

the formula to determine the future value of an annuity is:

FV = P x [(1 + r)ⁿ - 1] / r

Dan's monthly contribution = $500

Mike's monthly contribution = $500 x (1 - 25%) = $375 until age 59.5, then $500

Dan's n = 42 years x 12 months = 504

r = 9% / 12 = 0.75%

Mike's n = 414 for $375 and 90 for $500

Dan's FV = $500 x [(1 + 0.75%)⁵⁰⁴ - 1] / 0.75% = $2,813,492

Mike's FV = $375 x [(1 + 0.75%)⁴¹⁴ - 1] / 0.75% = $1,052,612

then $1,052,612 x (1.09)⁷°⁵ = $2,008,940

Mike's FV = $500 x [(1 + 0.75%)⁹⁰ - 1] / 0.75% = $63,939

total = $2,008,940 + $63,939 = $2,072,879

7 0

3 years ago

Veronica, a vice president of human resources at an auto company, wants to develop its programs for employee empowerment. Howeve

klasskru [66]

Answer:

B) In its rulings, the NLRB has allowed employee empowerment in certain very limited situations.

Explanation:

Employee empowerment refers to a company giving its employees a higher degree of autonomy and independence regarding their normal work related activities.

Personally I don't understand how employee empowerment can affect employees negatively but unions tend to oppose it unless they are directly involved in the empowerment process.

3 0

3 years ago

Type the correct answer in the box. Spell all words correctly. In which book of accounts do businesses record their daily financ

Marysya12 [62]

Answer:

Journal.

Explanation:

Businesses record their daily financial transactions in a journal, also known as the businessperson's diary.

A journal entry involves the process of keeping the records of business transactions made by an organization.

The journal entry is used by bookkeepers and accountants. Ideally, it is important that a journal has all of following informations; date, reference number, debit balance, credit balance and transaction description.

In Accounting, most businesses use a double-entry account system and as such, the total amount debited must equal the total amount credited in a journal entry.

6 0

3 years ago

Which of the following is not one of the four types of analyses outlined in the text as a method for analyzing sales organizatio

Readme [11.4K]

Answer:

e. market-share analysis.

Explanation:

e. market-share analysis because it is not only dependent on sales. Other factors are other industries markets total sales . It is not directly associated with analyzing sales organization effectiveness. Sales organization is responsible for selling and obtaining maximum profits. Optimum profits through least investments is their primary objective. Market share analysis is dependent on a particular period and the sales during that period ,target company's sales and total market sales.

8 0

3 years ago

Discuss any five roles ofentrepreneurship in the economicgrowth of a country ​

Discuss any five roles ofentrepreneurship in the economicgrowth of a country