Having an idea to establish a new business is the most inspirational and people who initiate it are entrepreneurs. Entrepreneurship can change our way of living and thinking, and helps us innovate new ideas. If it gets successful they get to earn money and more new jobs are created for the community. Being in charge of yourself, you could make your own decisions and be a boss of your own is a wonderful mania. You could be able to create something new and earn by this mean. Entrepreneurship idea is based to believe that taking risk to some points is necessary because if we never hit the ball, we can’t say that we did not make a goal. To achieve a goal, one should become a player to learn the next strategy of the game. It works like the healthy financial life line of a country’s economy.
Like in a game, there is need of favorable ground, weather and equipment conditions. In the same way there are some basic needs for entrepreneurs. To take a leap into the entrepreneurship is not only very easy to be successful in socially, ethically & politically instable economies but further it is moving to decline due the non business friendly environment. The main pros and cons of this system make barriers for them to think like entrepreneurs.
Even with very small resources entrepreneur can establish a business although at a small level that can be helpful in earning money and gaining more experience from it. But in the societies with poor democratic norms, i.e. in many countries of the world, political instability is the most horrible phantom that swallow up all business forecast, time management, targets, resources, encouragement, decision making powers of entrepreneurs. Due to political instability, most of the times there is no national policy to achieve targets of employments and to create jobs in the countries. In such scenario, banking sector is also unable to perform well because investors, enterpenurers remain uncertain that how changing political panorama will affect the Govt.’s policies about economy, industrialization, banking loans and interest rates. Banks uneven loaning policies are also make it hard to initiate for new small and medium level business ventures. In such uneven political back up, it’s not very easy to prepare youth to take initiative for new business start ups.
Due to lack of democracy practices, Governments are not liberal enough to make all positive decisions by using their real authorities. Interruptions and unjustified pressures of the other non- financial institutions of the state on political Govt. make it impossible to implement the straight and easy business policies for entrepreneurs that are the real soul of an economy.
The seeds of entrepreneurship can’t become healthy plants, if political institutions are not strong enough to make policies and there is no freedom of speech to ask about human rights, media and press is under strict surveillance to keep them avoiding to prevail truth, courts are unable to do justice and making decisions on personal choices are quite unstable. It’s really hard to raise entrepreneurs and people will remain reluctant for loaning or to invest money in new projects due to afraid of loss. In a politically unstable society, even by having resources, new business projects and start ups are not encouraged and jobs are preferred. It make extra burden on the country’s economy to provide new jobs, to employee its youth in the previously occupied trade and industry without making extensions in it.
Society become lethargic, jobs are preferred with a mindset to get a specific amount of money at the end of the month without any loss of money. In a country where politicians are pulling legs each other even on long lasting national policies, it’s a terrible fact that a project established by one government is paused or spoiled by the next government just to make a bad impression on the public minds to defame the previous Govt. Every day changing laws and unfavorable taxation policies also make it challenging for the businessmen and entrepreneurs to survive in such hard circumstances. Unfavorable governmental policies and high amount of taxes are being asked without any fruitful results.
This instability also hits the justice systems to employee fair distribution of public resources, courts are being pressurized to make decision as per every new Govt. choices or from the political engineers that might be some hidden mafia who are actually playing the role to instable the country to gain some personal benefits. So like all others, judges become puppets to save their jobs otherwise they have to be ready to be trapped in some accusation by political engineering forces. Consequently, there is no voice of human rights, International business communities and organizations don’t dare to start their ventures and firms stop working in politically effected countries and the motivation of entrepreneurship collapse because of the absence of any practical business practices and example for youth.
The situations make societies stagnant and there is need of revolution to make drastic changes in the thoughts of generations. There is need of an education system that can prepare people for mindfulness. There is need of human rights organizations to work there to optimize the society’s direction towards positive democracy through free and fair elections.
In this era, world became a global village, such unsystematic societies yet need the other International communities to perform for their personal choices. Public awareness programs are needed to teach people about their rights, to encourage them to make a voice. There is need of more attention by Global Human rights organizations to provide the protection to human right activists so justice can be penetrated in such societies. Youth should be encouraged and involved in brain storming to end poverty and to grow entrepreneurship.
To promote entrepreneurship, Old business systems should be replaced with modern business models and youth should be involved to improve the status co. There is need of new people with fresh minds and suggestions to bring newness in the thoughts and ancient ways of employment. Small and medium enterprises should be encouraged as these are a primary source for young entrepreneurs to initiate at their own. Commercial entrepreneurship signifies small scale business but regrettably been ignored in these economic policies. In such instable societies, mostly business schools are not associated with the business community and there is lack of collaboration between communities. There is no hype for entrepreneurial ethos and study of has-been business models so the grey haired knowledge needs to get updated as soon as possible so that out business community could grow auspiciously. These skills and ides should be matured by the time because they are not in-born qualities of any person. Deficit of advocacy and awareness results as poverty stricken community. Small scale adaptations increasing played its positive role in day to day country’s financial growth.
Most of the people don’t know how to develop a business plan; the lack of business education must be covered. People don’t get employment in small industries as there are more working hours, workload with very low wages. There is an old custom of paying daily wages and disown them anytime. Government should provide subsidies and should guarantee loans. They should offer workshops for starter ups. Make relevant labor laws to reduce labor turnovers. Only a stable and strong political and democratic Govt. can do implement the above situations.
Link To Article: https://youth-journal.org/effect-of-political-instability-on-entrepreneurship-and-econ