Writer : Upen Pandey
There is no doubt that competition fosters entrepreneurship and growth. The Stone Age has turned to the world of industrialization and technology. The modern day is characterized by dynamism, hyper competition and technological sophistication. The direction that industrialization has taken has pressurized entrepreneurs to be scrupulous towards the needs of customers.
Competition, the crux issue of this modern age, is the result of the heterogeneous desires of customers. In essence, competition acts as an engine to drive the development of entrepreneurship skills along with growth and diversification. There are a myriad of human wants, but unfortunately the resources satisfying these wants are scarce. As a result, optimum utilization of resources to suffice the unlimited wants is the utmost requirement in the present context. Dealing with the issue of scarcity poses competition in the matters of quality, size, and packaging along with the price of the existing upcoming product.
Customer’s awareness and satisfaction is the dominant factor for increasing competition. Under a competitive environment, every competitor endeavors to be singular in its specialized sector. Competitors exert relentless efforts to develop unique entrepreneurships skills for economic growth which today totally depends on how competitive the market is. A competitive business environmental forces entrepreneurs to come up with a pool of ideas, methods, techniques, skills and so forth. A market with the little competition or no competition has no room for growth, diversification or development. A strong evidence of this is the inept procedures or competitive who are disappearing from the market. Competition is also a pivotal factor that shortens the life cycle of the products. A short life span of products has forced players to be innovative and creative. To quote economist Joseph A Schumpeter, “Profit is the reward fir the innovation”. This means that only innovative competitors will be able to reap profits which are the motivating factors for entrepreneurs.
Innovative, hereby infers either to increase in the demand for goods and services, or low cost of products that attract customers through the thorough use of entrepreneurships skills. This shows that competition invites innovation and innovation is possible only through entrepreneurship. It is also a fact that competitors will be candidates of extinction. Competition, thus forces one to be efficient and effective unprecedented or novel situations that emerge due to competition. Competition, if handled tactfully, creates opportunities for entrepreneurship and growth. However, if the elements of competition are overlooked, it proves to be detrimental to growth. In conclusion, competition motivates competitors to fosters, nurture and develops entrepreneurship skills and calibers that further assist in growth and diversification.