The Impact Of Entrepreneurship In New Zealand

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The Investopedia defines the entrepreneur as a person who starts his own business by taking lot of risks. (Entrepreneur, 2014). Most of the popular & large organisations around the world have been started by entrepreneurs. The contribution of entrepreneurs to a country’s economy and to the business environment holds a major share. Once an American politician Mike Pence stated that “The American economy has been built and sustained by risk-taking entrepreneurs whose pioneering ideas and hard work gave birth to flourishing businesses” (Mike Pence Quotes , 2014). Therefore same as United States, the entrepreneurs have contributed heavily to the New Zealand business environment and to the country’s economy. Entrepreneurs are contributing in various …show more content…
Entrepreneurship always creates job opportunities to educated & skilled people as well as people who don’t have much education and qualification. Entrepreneurship is one of the factors to decrease unemployment rate in New Zealand. New Zealand’s Total Early-Stage Entrepreneurial Activity (TEA) ratio is 17.6% which only second to Thailand and Venezuela which implicates the potential for entrepreneurship in New Zealand (Frederick & Chittock, 2006). According to the Organization for Economic Co-operation and Development (OECD), during the period of Q3 of 2012 to Q1 of 2014, the unemployment rate of New Zealand has gone down 7.2% to 5.9% while the employment rate has increased from 72.2 to 74.5 over the last 4 years. New Zealand is a country with a population of around 4.5 million (Data on New Zealand, 2014). Out of this population 584,000 people employed in 460,000 small businesses around New Zealand and most of the other portion of the population employed in large organisations which started by entrepreneurs (New Zealand Government, 2014, p. 7). Other than small businesses if we consider large organisations …show more content…
New Zealand is a country which is represents a considerable increase in the Gross Domestic Product (GDP) from 30123 – 32117 US$ per capita for the period of 2009-2012. According to the OECD Data New Zealand’s real GDP forecast for the period of 2009-2014 is impressively rising from 0.64 % to 3.48 % (Data on New Zealand, 2014). Most of the small & medium companies are managed my entrepreneurs and some of the large organizations are also founded by entrepreneurs. According to the small business fact sheet 2014 it shows that 97% of the firms in every industry have no more than 20 employees and out of these firms 96% of firms are owned by entrepreneurs and operates independently. This shows that New Zealand business environment is mostly filled with entrepreneurs. Some of these entrepreneurs have been successfully achieved their company objectives and generating huge amount of revenue in to the country. As mentioned earlier most of the hiring rental & property companies, professional services companies, and agricultural industry companies in New Zealand have no employees rather than the owner. According to the New Zealand sectors report 2014, it shows that largest share of GDP produces by those above mentioned 3 industries. (New Zealand Government, 2014) Therefore that illustrates that the contribution of entrepreneurs with respect to the New Zealand

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