Paper Example on Entrepreneurship and Diversification

Introduction

Economic diversification is one important factor in Trinidad and Tobago, the diversification in the energy sector has been difficult but equally important. Countries that have or have had a perfectly blended economy will work well in producing a good export portfolio one that will result in a 0 index, meaning that it will be most diversified, some countries will have a tendency of exporting one type of a product thus getting a value that coincides with an index of 1 which is the least diversified. In Trinidad and Tobago, there is the concentration of diversification mainly on gas and oil products in the export markets. Trade and diversification in Trinidad and Tobago have been low aiming at being constant, but the trend had since taken a new twist from the early 2000s when the tradable diversification now decreased in both the products and markets. Consequently, there has been a recent notion that the economy is becoming less diversified thus being desired minimally.

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Policies put in place in the past have failed since Dutch diseases manifested in Trinidad and Tobago, thus its chronic exchange rate being valued by exploiting them their oil and gas. Some of the countries which are considered to have a lower GDP per capita had shifted in their purchasing power parity as compared to their nominal GDP per capita which has been pointed out to have an overvalued exchange rate. In evaluating a real exchange rate through calculation, it can be concluded that Trinidad and Tobago dollars are being consistently and substantially being overvalued.

Diversification in Trinidad and Tobago

An approach set up in place to ensure that sustainable economic growth set up in Trinidad and Tobago, an accord regarding whether to put more effort towards strengthening of the energy sector or concentrate on other parts of their non-energy areas but pursuing an industrial diversification. The matter is important such that looking at it closely in a theoretical and practical level is worth it.

Essentially, the money that Trinidad and Tobago have gained through their present reserves and incomes from their energy sector have been coined to form a manufacturing, tourism and agricultural areas; the same reserves will be used as a development nationally long after there has been an oil-boom and has been abated. Experiences in the past have not been employed as learning lessons since the very same economic depressions and international upheavals have not been closely evaluated and taken care of.

Finding has indicated that access to finance; terms of trade among others such as foreign direct investment have affected diversification hugely. When all other factors are constant, there is a tendency of countries that get direct investments being more diversified. A good indication that investors are looking to invest in industries rather than taking the very same opportunities to pool resources that have already been put into place toward international markets. Terms of trade are dependent on concentration being made in the export base, pointing out to the fact that relative price variations go hand in hand with a reallocation in everything that is associated with production pointing out to a segment that profitability has largely been boosted. A financial development lays on a negative and essential coefficient. However, when there is a reduction in liquidity constraints, then there can be an extension of credit which in turn will facilitate export activities. In the countries that have been granted freedom regarding credit are more diversified. Exchange rates have also proved to affect diversification and its pattern. Currency appreciations are traced to beneficial aspects since they carry a higher concentration of any given export base. It can also be purported that real appreciation has a reduction effect in investment profitability.

The diversification of Trinidad and Tobago must be largely inspired by the Government which will look at changing how they should think and the economy. The government should make sure that it is actively taking part in agreements internally so that they can have support from the business sector while on the other side the civil society with the aim of finding out which areas of gas and oil are becoming weak and needs more attention and support thus implement a certain diversification program; it is important in a manner to suggest that there will not be any controversies in the near future, since the policies will also have policy favors and preferences given of certain trading manners.

The pressing on for the implementation of diversification of the economy is for the sole reason of making sure that Trinidad and Tobago do not have any other way out since the realities that are associated with globalization and liberalization are just stressing on the already dangling factors of an economy. The argument has a very good rationale. There can be the reason such as upcoming commercial interests, factors such as the operating efficiencies and deviation which is attracted with a fair competition brought about by the excessive subsidizing and other governmental interferences. Even if the intent is present, being productive and assisting in the development of the oil and gas sectors; the government has no capability and has not been long in experience for diversification. Consequently, an eagerness that is associated with a quick success while at the same time immediate benefit can very much prove not to be very productive.

Supporting the mechanism requires a lot of investment in the sectors of policy research, which is very important. However, looking at the government of Trinidad and Tobago they do not have that many strong resources to assist in this area. The private sector requires also standing up and making sure that they are assisting in this important research. Other research methods should ensure that they are shifting their ideas from being just theoretical and start being practical, doing more assessments and analysis. Concentrating on this method will ensure that there are results in the shortest time possible and will use some limited types of resources.

The Role of Entrepreneurship

Entrepreneurship has been there over the years but is now emerging and proving to be essential to organizations of economies, for a very prolonged period it has been considered to be an imperative economic development mechanism. Consequences attached to entrepreneurship and their economic performance has brought up extensive discussions and literature. Theoretically, looking and analyzing an entrepreneur who is an elusive character largely manifested in the economic theory and this comes in handy due to the fact of difficulty in giving out an accurate description. Entrepreneurship does not have a definite role in economic growth theory.

Entrepreneurship can be referred to as a subtle character based on the economic theory. Roles of entrepreneurship are varied and many to the economy and its growth. Entrepreneurship changes with changes that are incorporated in a market such as innovation, since there will be the division of tasks such as labor and growth in productivity. Entrepreneurship has not been the only on a central topic in the economic theory.

More innovative entrepreneurship ideas have shed light on the firm's part where they suggest that an infestation of a new idea to change an existing product into something new renders the other one outdated. Firms mostly make a run when there is innovation since they will make a killing due to the monopoly of the market. However, an empirical study does not recognize a relationship that exists with economic growth especially for the low-income countries but has one in the high-income countries.

Role of Millennial

Millennial, compared to baby boomers, can be said to be a set group of people who can be defined by their birth dates. A "millennial" is a word used to refer to a person who is born in the year 1980 and above. Therefore, Millennial is a group of people that were given birth in the year 1977 and 1995, or another example would be 1980 and 2000, it might also be dependent on the person who is writing about the issue. The groups of individuals who are taking over the American workforce have been given names such as generation Y, Generation Why among others. For instance, in the year 2016 the workforce people of the ages of 20 and 44 years.

Millennials have been given the obligation of creating a cultural shift within the workplace. Millennials have expressed their interest in taking it up to themselves to personally work on meaningful tasks. They have shown an attitude of resisting hierarchy in any given corporation they have expressed a way of handling any given work in diverse environments, thus not just settling in one position of their desks. Flexible timetables work best for millennials since they have high regard when it comes to balancing work-life balance. Organizations are slowly adopting this type of culture that gears in a soft place and time employee-centered environment. The generation is slowly taking the bull by its horns through a strategy whereby they are disregarding the traditional or olden days of management. They are well recognized as multitasking team players, happy when they are appreciated and given good feedback as motivation.

The millennials have a role whereby they are tasked with closing the gender wage gap but is estimated or dated to the time they will be retiring. Although in the past it has been known that women earn a rough figure of 80 cents compared to a dollar that a man earns when it comes to the millennials it is estimated that it will change. From the year 1979, there was a circulation of a report that brought hope for women who have been earning lesser as compared to men by the U.S Department of Labor. The Gap has been closed from the year 1979 from 62.3 percent to a whole 81.1 percent in the year 2015. In the very same report, the women in the generation were earning more than an older woman and to some more.

Bibliography

Gill, Indermit Singh. 2014. Diversified development: making the most of natural resources in Eurasia. http://www.worldbank.org/content/dam/Worldbank/Feature%20Story/ECA/diversified-development-eurasia-full-report.pdf.

Hisrich, Robert D., Michael P. Peters, and Dean A. Shepherd. 2010. Entrepreneurship. New York: McGraw-Hill/Irwin. http://books.google.com/books?id=CpFZAAAAYAAJ.

Howe, Neil, and Reena Nadler. 2010. Millennials in the workplace: human resource strategies for a new generation : implications for educators, employers, and policy makers. [Great Falls, Va.]: Lifecourse Associates.

Montes, Javier. 2017. Millennial Workforce: cracking the code to generation y in your company. [Place of publication not identified]: Lulu Publishing Services.