Benefits and Limitations of Economic Analyses of Entrepreneurial Essay

Benefits and Limitations of Economic Analyses of Entrepreneurial Behaviour - Essay Example The researcher states that entrepreneurship consists in undertaking those activities which are generally not conducted in usual business routine. However, the entrepreneurial behavior in any country can be affected by economic analyses of a particular nation. The efficacy of entrepreneur improves if certain economic contexts such as political or governmental interference are less in a country. Several economists have defined the term ‘entrepreneur’ and their behavior in an economy. In economic theories, the knowledge of selection and decision making is essential for successful entrepreneurs. Entrepreneurs demonstrate individual qualities which let certain persons make innovative decisions whose impact can be experienced in the long run. In every country, the entrepreneurial behavior is influenced by the suitability and setup of proper business foundations. For instance, political environment, economic environment, marketing aspects and technological aspects can significa ntly impact on the behavior of entrepreneurs. A stable, expectable and well-organized business environment with the strong governing system generally facilitates entrepreneurs to take innovative decisions. Entrepreneurs positively react to the environmental opportunities which in turn is related to economic analysis, because it can help to measure the benefits of opportunities identified. One of the most significant tasks of entrepreneurs is to discover and take advantage of opportunities. Opportunities for entrepreneurs can be defined by those environmental circumstances where products and services can be traded for the higher rate than the cost of production. Entrepreneurs typically decide when to utilize a market in order to support the discovery, and when to create a business to assist in facilitating the discovery. These decisions typically depend on the economic analyses of a country such as technological environment, marketing environment, and political environment. Before an entrepreneur earns revenue from an opportunity, he/she first analyze the worth of the opportunity. According to the discovery theory, there are two major assumptions which impact on entrepreneurial behavior.