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Building an Economy
Name
Institution Affiliation
Course
Date
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Introduction
Building a strong economy is one of every nation's major goals and objectives because
the economy is its backbone. A country's economy has an immediate and lasting effect on nearly
every citizen; thus, all countries typically strive to ensure that their economy is growing and
flourishing. Growth in the economy shows that there has been an increase in the real GDP, which
includes an increase in the value of national output, income, and expenditure. Growth in the
economy can present several benefits such as better education, reduced poverty, increased
expectancy, higher incomes, and improved government finances. When a country experiences
economic growth, consumers are able to consume more products and services and enjoy
improved standards of living due to the provision of higher average incomes. Building a strong
economy prevents the government from borrowing many funds because it sets greater tax
revenues, preventing the necessity to spend more cash on benefits like unemployment benefits.
The economy's growth also promotes investments and increased research and development in a
country because various firms are encouraged to invest to meet future demand.
Government planning in building an economy
The government plays various roles in economic planning and development. Economic
planning is considered the major activity of the modern welfare states and other developing
economies because it involves setting objectives of economic development that are expected to
be attained after a certain period. The government should take part in planning in order to attain
the goals of economic development through a holistic method by considering social, economic,
political, and geographical factors of the nation. Economic development occurs when simple and
low-income national economies are changed into modern industrial economies. The roles of the
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government in planning consist of acting as a policymaker, an economic planner, an
entrepreneur, and an infrastructure builder (Hu, 2017). Other roles that the government plays in
planning include serving as the vehicle of social welfare and change agent, a motivator to
economic growth, and a controller of the economy.
The government usually establishes most economic policies; hence the government
should act as a policymaker in economic planning and development. Policymakers are supposed
to undertake certain forms of economic policies such as fiscal, monetary, and supply-side policy.
The fiscal policy entails modifications in government spending and taxation, while monetary
policy entails modifications in the money supply to change the interest rate in order to influence
the rate of inflation (Karwowski, & Centurion-Vicencio, 2018). The supply-side policy tries to
raise the productive capacity of the economy, on the other hand. The government should be an
economic planner because economic planning includes making significant economic decisions
by a determinate authority based on the detailed survey of the entire economy. The government
will have to make certain decisions like what and how much to produce, when, where, and how
to produce it, and the individuals it should be allocated to.
During the planning process, the government should serve as an infrastructure builder
because each department in the economy generally relies on basic things such as energy,
communication, transport, raw materials, and water. The infrastructure sector is always a
fundamental driver for any economy because it is incredibly accountable for facilitating
development, and it enjoys much focus from the government for coming up with policies that
would make sure there is time-bound creation of world-class infrastructure in the country.
Another role of the government in economic planning and development is acting as a vehicle of
social welfare and an agent of change. Some societies are suffering from human development
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4
issues like unemployment, sanitation, poor health, illiteracy, and poverty. The government has
to grow into a new role of management, leadership, and facilitation of social change, with the
main key being building and stabilizing the inter-organizational network. The constitutional and
other legal instruments can fulfill the concept of welfare and the administrative state.
As a motivator for economic growth, the government intervenes in the economy in
different ways. The government produces goods and services like national defense, education,
and infrastructure. It also transfers income vertically in various income levels and horizontally
amongst groups with the same incomes and distinct characteristics. Other ways through which
the government intervenes in the economy include imposing taxes to pay for its outlays, which
might reduce efficiency in the economy, and then it imposes regulations that change economic
activities (Beer, & Clower, 2019). It is hard to measure the economic effects of regulation based
on costs and benefits, although they cannot be neglected since they can be interchangeable with
government spending.
Moreover, the government can support entrepreneurship in the economy by
implementing particular policies. The government should develop policies that deal with the
wants of the business and its administration team, offer leadership but give responsibility and
ownership, and make sure that all sectors in the industry are considered and not just high tech in
order to promote growth in all sectors comprising low, mid and high-tech organizations. Other
ways that the government can foster entrepreneurial ecosystems consist of allowing for natural
growth and not top-down resolutions, ensuring the government policy is broadly focused, and
making the information of entrepreneurial activity a government priority.
Entrepreneurial innovation in building an economy
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Entrepreneurial innovation has played a significant role in building the economy and the
standards of living amongst people in the country. Innovation is generally the improvement or
replacement of various things. It is a specific instrument of entrepreneurs with the help of which
a person exploits the changes as a chance for a different business. Innovative entrepreneurs have
the ability to deal with the production of innovative products to meet the market's demands and
trends (Gonzalez-Cruz, & Devece, 2018). Entrepreneurial innovation has been considered the
main reason for modern existence, and change is unavoidable; in most cases, innovation always
results in positive change.
Some of the advantages of entrepreneurial innovation include environmental
sustainability, communication, and educational accessibility, reduced poverty and hunger,
increased well-being, economic growth, and reduction in unemployment. Entrepreneurial
innovation has been held as the main source of economic growth. It increases the output of the
economy by establishing new methods to acquire additional output from the same number of
inputs and increase the amount of inputs that go to the productive process. The main role of
innovation is to develop new ideas and technologies that raise productivity and produce higher
output and value with the same input. Entrepreneurial innovation and economic growth increase
the well-being of people because their living standards rise.
Additionally, entrepreneurial innovation reduces the rate of unemployment in various
ways. When a business is running successfully, it motivates the entrepreneur to establish new
branches at different places, which will lead to the presence of more new job opportunities.
Expansion of small business opportunities will promote competition which in turn can lead to
setting up new businesses with new products and services for consumers. Most small businesses
seem to employ people in their neighborhoods hence eliminating unemployment. The living
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6
standards of innovative entrepreneurs motivate the majority of the youth to establish their
businesses instead of working for other employers, and it leads to the creation of more job
opportunities.
Entrepreneurial innovation has significantly played a crucial role in the sustainability of
the environment and positively impacted community life. Various environmental issues like
climate change are some of the challenges that need much work and innovative solutions
currently and in the future. Developing and sharing various agricultural innovations like
connecting farmers to information about the weather has also proven to be an effective way to
assist many farmers in staying in business. They have been able to continue producing food in
the market and provide more opportunities that can eventually help reduce poverty and hunger in
the country. Entrepreneurial innovation has enhanced the setting up of enterprises that have
helped to promote several retail facilities, a greater level of homeownership, better sanitation
standards, and higher education and recreation activities.
Moreover, innovation has helped many businesses in the economy to embrace the use of
social media, have unique selling points, respond to trends and competition and make the best
out of their existing goods and services. Many entrepreneurs have been equipped with human
resource strategies that have helped them to respond to the present success and needs of
consumers besides concentrating on forecasting future trends (Guerrero, & Urbano, 2021). With
the assistance of innovation in entrepreneurship, entrepreneurs are able to respond to future
trends by coming up with solutions to make the business continue growing.
Conclusion
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In conclusion, it is important for all stakeholders, including the government and
entrepreneurs; to work together in order to ensure that the country builds a strong economy.
Being able to build a strong economy will provide various advantages such as reducing the levels
of unemployment, higher average incomes, economic development, more investments, and
improved public services. The governments should also play their main roles in economic
planning and development so as to ensure all the required elements for economic growth are
provided. Entrepreneurs should embrace innovation in all their activities and come up with other
effective methods of carrying out business activities. This ill preset several benefits such as
accessibility of education, sustainability of the environment, reduction in poverty, and reduction
in the levels of poverty.
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8
References
Beer, A., & Clower, T. L. (2019). Globalization, planning, and local economic development.
Routledge.
González-Cruz, T., & Devece, C. (2018). Entrepreneurial innovation, judgment, and decision-
making as a virtuous process. International Entrepreneurship and Management Journal,
14(2), 245-248.
Guerrero, M., & Urbano, D. (2021). Looking inside the determinants and the effects of
entrepreneurial innovation projects in an emerging economy. Industry and Innovation,
28(3), 365-393.
Hu, R. (2017). Planning for economic development. In The Routledge Handbook of Planning
History (pp. 313-324). Routledge.
Karwowski, E., & Centurion-Vicencio, M. (2018). Financialising the state: recent developments
in fiscal and monetary policy.

Unformatted Attachment Preview

1 Building an Economy Name Institution Affiliation Course Date 2 Introduction Building a strong economy is one of every nation's major goals and objectives because the economy is its backbone. A country's economy has an immediate and lasting effect on nearly every citizen; thus, all countries typically strive to ensure that their economy is growing and flourishing. Growth in the economy shows that there has been an increase in the real GDP, which includes an increase in the value of national output, income, and expenditure. Growth in the economy can present several benefits such as better education, reduced poverty, increased expectancy, higher incomes, and improved government finances. When a country experiences economic growth, consumers are able to consume more products and services and enjoy improved standards of living due to the provision of higher average incomes. Building a strong economy prevents the government from borrowing many funds because it sets greater tax revenues, preventing the necessity to spend more cash on benefits like unemployment benefits. The economy's growth also promotes investments and increased research and development in a country because various firms are encouraged to invest to meet future demand. Government planning in building an economy The government plays various roles in economic planning and development. Economic planning is considered the major activity of the modern welfare states and other developing economies because it involves setting objectives of economic development that are expected to be attained after a certain period. The government should take part in planning in order to attain the goals of economic development through a holistic method by considering social, economic, political, and geographical factors of the nation. Economic development occurs when simple and low-income national economies are changed into modern industrial economies. The roles of the 3 government in planning consist of acting as a policymaker, an economic planner, an entrepreneur, and an infrastructure builder (Hu, 2017). Other roles that the government plays in planning include serving as the vehicle of social welfare and change agent, a motivator to economic growth, and a controller of the economy. The government usually establishes most economic policies; hence the government should act as a policymaker in economic planning and development. Policymakers are supposed to undertake certain forms of economic policies such as fiscal, monetary, and supply-side policy. The fiscal policy entails modifications in government spending and taxation, while monetary policy entails modifications in the money supply to change the interest rate in order to influence the rate of inflation (Karwowski, & Centurion-Vicencio, 2018). The supply-side policy tries to raise the productive capacity of the economy, on the other hand. The government should be an economic planner because economic planning includes making significant economic decisions by a determinate authority based on the detailed survey of the entire economy. The government will have to make certain decisions like what and how much to produce, when, where, and how to produce it, and the individuals it should be allocated to. During the planning process, the government should serve as an infrastructure builder because each department in the economy generally relies on basic things such as energy, communication, transport, raw materials, and water. The infrastructure sector is always a fundamental driver for any economy because it is incredibly accountable for facilitating development, and it enjoys much focus from the government for coming up with policies that would make sure there is time-bound creation of world-class infrastructure in the country. Another role of the government in economic planning and development is acting as a vehicle of social welfare and an agent of change. Some societies are suffering from human development 4 issues like unemployment, sanitation, poor health, illiteracy, and poverty. The government has to grow into a new role of management, leadership, and facilitation of social change, with the main key being building and stabilizing the inter-organizational network. The constitutional and other legal instruments can fulfill the concept of welfare and the administrative state. As a motivator for economic growth, the government intervenes in the economy in different ways. The government produces goods and services like national defense, education, and infrastructure. It also transfers income vertically in various income levels and horizontally amongst groups with the same incomes and distinct characteristics. Other ways through which the government intervenes in the economy include imposing taxes to pay for its outlays, which might reduce efficiency in the economy, and then it imposes regulations that change economic activities (Beer, & Clower, 2019). It is hard to measure the economic effects of regulation based on costs and benefits, although they cannot be neglected since they can be interchangeable with government spending. Moreover, the government can support entrepreneurship in the economy by implementing particular policies. The government should develop policies that deal with the wants of the business and its administration team, offer leadership but give responsibility and ownership, and make sure that all sectors in the industry are considered and not just high tech in order to promote growth in all sectors comprising low, mid and high-tech organizations. Other ways that the government can foster entrepreneurial ecosystems consist of allowing for natural growth and not top-down resolutions, ensuring the government policy is broadly focused, and making the information of entrepreneurial activity a government priority. Entrepreneurial innovation in building an economy 5 Entrepreneurial innovation has played a significant role in building the economy and the standards of living amongst people in the country. Innovation is generally the improvement or replacement of various things. It is a specific instrument of entrepreneurs with the help of which a person exploits the changes as a chance for a different business. Innovative entrepreneurs have the ability to deal with the production of innovative products to meet the market's demands and trends (Gonzalez-Cruz, & Devece, 2018). Entrepreneurial innovation has been considered the main reason for modern existence, and change is unavoidable; in most cases, innovation always results in positive change. Some of the advantages of entrepreneurial innovation include environmental sustainability, communication, and educational accessibility, reduced poverty and hunger, increased well-being, economic growth, and reduction in unemployment. Entrepreneurial innovation has been held as the main source of economic growth. It increases the output of the economy by establishing new methods to acquire additional output from the same number of inputs and increase the amount of inputs that go to the productive process. The main role of innovation is to develop new ideas and technologies that raise productivity and produce higher output and value with the same input. Entrepreneurial innovation and economic growth increase the well-being of people because their living standards rise. Additionally, entrepreneurial innovation reduces the rate of unemployment in various ways. When a business is running successfully, it motivates the entrepreneur to establish new branches at different places, which will lead to the presence of more new job opportunities. Expansion of small business opportunities will promote competition which in turn can lead to setting up new businesses with new products and services for consumers. Most small businesses seem to employ people in their neighborhoods hence eliminating unemployment. The living 6 standards of innovative entrepreneurs motivate the majority of the youth to establish their businesses instead of working for other employers, and it leads to the creation of more job opportunities. Entrepreneurial innovation has significantly played a crucial role in the sustainability of the environment and positively impacted community life. Various environmental issues like climate change are some of the challenges that need much work and innovative solutions currently and in the future. Developing and sharing various agricultural innovations like connecting farmers to information about the weather has also proven to be an effective way to assist many farmers in staying in business. They have been able to continue producing food in the market and provide more opportunities that can eventually help reduce poverty and hunger in the country. Entrepreneurial innovation has enhanced the setting up of enterprises that have helped to promote several retail facilities, a greater level of homeownership, better sanitation standards, and higher education and recreation activities. Moreover, innovation has helped many businesses in the economy to embrace the use of social media, have unique selling points, respond to trends and competition and make the best out of their existing goods and services. Many entrepreneurs have been equipped with human resource strategies that have helped them to respond to the present success and needs of consumers besides concentrating on forecasting future trends (Guerrero, & Urbano, 2021). With the assistance of innovation in entrepreneurship, entrepreneurs are able to respond to future trends by coming up with solutions to make the business continue growing. Conclusion 7 In conclusion, it is important for all stakeholders, including the government and entrepreneurs; to work together in order to ensure that the country builds a strong economy. Being able to build a strong economy will provide various advantages such as reducing the levels of unemployment, higher average incomes, economic development, more investments, and improved public services. The governments should also play their main roles in economic planning and development so as to ensure all the required elements for economic growth are provided. Entrepreneurs should embrace innovation in all their activities and come up with other effective methods of carrying out business activities. This ill preset several benefits such as accessibility of education, sustainability of the environment, reduction in poverty, and reduction in the levels of poverty. 8 References Beer, A., & Clower, T. L. (2019). Globalization, planning, and local economic development. Routledge. González-Cruz, T., & Devece, C. (2018). Entrepreneurial innovation, judgment, and decisionmaking as a virtuous process. International Entrepreneurship and Management Journal, 14(2), 245-248. Guerrero, M., & Urbano, D. (2021). Looking inside the determinants and the effects of entrepreneurial innovation projects in an emerging economy. Industry and Innovation, 28(3), 365-393. Hu, R. (2017). Planning for economic development. In The Routledge Handbook of Planning History (pp. 313-324). Routledge. Karwowski, E., & Centurion-Vicencio, M. (2018). Financialising the state: recent developments in fiscal and monetary policy. Name: Description: ...
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