Research Article: 2019 Vol: 22 Issue: 3
Entrepreneurship Activity in the Service Sector in Globalization Conditions
Liliia Martynova, Vinnytsia Institute of Trade and Economics of Kyiv National University of Trade and Economics
Nataliia Chorna, Vinnytsia Institute of Trade and Economics of Kyiv National University of Trade and Economics
Iryna Yurchyk, Vinnytsia Institute of Trade and Economics of Kyiv National University of Trade and Economics
Lina Marshuk, Vinnytsia Institute of Trade and Economics of Kyiv National University of Trade and Economics
Nadiia Andrusenko, Vinnytsia Institute of Trade and Economics of Kyiv National University of Trade and Economics
Abstract
The article outlines the importance of the development of entrepreneurship in general and the services of freelance services in particular. Different scientific opinions and approaches to entrepreneurship development and efficiency increase are presented. The purpose of the article is to consider the development of entrepreneurship and entrepreneurial activity in the freelance service sector, approaches to the development and implementation of business development strategies. It is proposed to use an approach based on the consideration of the actions of both internal and external factors (level of economic development of the countries and income differentiation, development of Internet technologies, human development), especially in globalization conditions, global overflow of all types of resources. On the basis of the above, the three-dimensional matrix of the development and implementation of the strategy of business development in the freelance service sector in globalization conditions is given.
Keywords
Entrepreneurship, Entrepreneurial Activity, Freelance Services, Business Development Strategies.
JEL Classifications
I2, F6
Introduction
The development of entrepreneurship, entrepreneurial activity is becoming widespread both in national economies and globally, as it is a significant factor in the growth of the economy, income and welfare. Entrepreneurship, entrepreneurial activity in all spheres of the economy is becoming an object and subject of research, directing a scientific search for solving a wide range of aspects of development. As researchers point out, the society congratulates entrepreneurs, because they can benefit. Many studies focused on what variables and characteristics lead to successful entrepreneurship (Rapp-Ricciardi et al., 2018). Other researchers rightly believe that entrepreneurship is a natural desire. An entrepreneurial intention is something that everyone has in himself, but things do not always consist in such an intention that this intention could be realized (Latkin et al., 2018). Scientists say that in many countries, the role of small business and the impact of the service sector, as well as the increase in its share in total employment and incomes in the period of global economic change is increasing, which requires appropriate changes in all aspects of the activities of entrepreneurs who are also engines of scientific and technological progress. Increasing competition in the saturation of the market contributes to the development of personal needs. Increasing the role of entrepreneurs meets the long-term trends of economic growth (Drobyazko et al., 2019).
Nowadays, the number of companies using 100% remote teams is increasing in the world. For example, in the United States, 36% (57.3 million) of workers are freelance workers working at home. Together they bring 1.4 trillion dollars before the economy every year. This is an increase of 30% from 2016. In 2016, Freelancer.com received a total of 10.6 million announcements of vacancies from clients totalling $3 billion in the form of paid transactions (20 Mind-Blowing Freelancing Statistics That Prove Remote Work Is the Future). Thus, the freelance service sector is one of the growing areas of the economy, it creates an active component in socio-economic development, providing entrepreneurship with integration into the global society and economy, increasing access to and use of national and global resources. According to the research (Portna, 2015a, 2015b), this positive impact on the strengthening of the potential of financial and economic growth and social welfare.
Literature Review
Problems of entrepreneurship development, increase of entrepreneurial activity in various spheres of economy are becoming objects of professional discussion and scientific research. For example, researchers argue that full and sustainable business financing increases the efficiency of entrepreneurial activity, facilitates entry into the market, as well as encourages innovation and investment opportunities. Funding constraints are most noticeable in developing countries due to gaps in the financial system due to high security requirements, high administrative costs and information asymmetries. Enhancing access to finance for entrepreneurship can improve the economic conditions in developing countries by stimulating innovation, macroeconomic sustainability and GDP growth (Lawal et al., 2018).
Specialists in managerial accounting (Bondar & Iershova, 2015; Ershova, 2014) note that the quality of information, information base, information technology is important for achievement of the goals of effective management.
In her research on the impact of business orientation and market orientation on business efficiency, Souisa (2018) concludes that both business orientation and market orientation do not significantly affect business efficiency.
The study of freelancing as a type of entrepreneurship, advantages, disadvantages and prospects of development (Akhmetshin et al., 2018) shows that freelance work has its disadvantages and advantages. In scientific research, the emphasis is on internal factors that relate to and depend directly on the freelancer (the ability to work in any city of the world, dependence of income from the worker, and not from the employer, free work schedule and choice of activity, saving time and other resources on the road to work and back, solving the employment problem, etc.).
However, solid scientific developments of a wide range of different aspects of entrepreneurship, entrepreneurial activity in various spheres of the economy prove that, despite the substantial theoretical and professional workmanship, today presents many problems for entrepreneurship in general and freelance services in particular (Karpenko et al., 2018).
Hypothesis
In globalization conditions, freelancing is widely developed as a modern, topical business, requiring the development and application of conceptual scientific approaches to strategic development, taking into account a wide range of factors and components.
Methodology
There is currently no established theoretical and methodological basis for studying the problems of entrepreneurial activity in the field of freelance services. In order to achieve the research purpose, the method of theoretical generalization, the position of the theories of entrepreneurship development, table and graphical methods for visual display and a schematic representation of the main provisions of the research were used.
Findings And Discussions
The development of freelance services is becoming more widespread both in individual countries and in the world. As any phenomenon, freelancing has its peculiarities, advantages and disadvantages. A wide range of problems in the development of entrepreneurship and entrepreneurial activity in the freelance service sector, the stability of business financing is directly related and is addressed through effective management through the development and implementation of a business development strategy. Traditional, benchmarking strategies for business development are the development of the market and product, the strengthening of market positions, and so on. In order to develop and implement strategies for business development in the freelance service sector, it is necessary to apply a scientific approach that takes into account a number of factors and components. We believe that external factors and preconditions for the development of freelance have a great influence on entrepreneurial activity in this area, especially in the context of the spread of globalization processes, global overflow and a significant concentration of all kinds of resources (labour, finance, etc.) in economically developed high-income countries and welfare (Table 1).
| Table 1: External Factors Of Entrepreneurship Development And Increase of Entrepreneurial Activity In The Freelance Service Sector In Globalization Conditions | ||||
| Factors | Peculiarities | Positive impact | Negative impact | Results |
|---|---|---|---|---|
| Differentiation of economic development of countries and its income | Different countries have different levels of economic development and income levels | Freelancers in most cases are looking for work in developed countries, which provides a high level of their income | In fact, this is the source of a skilled workforce from national economies | Differentiation of economic development of countries and incomes, which leads to the further search for revenues outside national economies, is intensified. |
| Internet technology development | Different countries have different levels of Internet technology development | Freelancing develops on the basis of Internet technology development | Braking of Internet technology development as an essential component of national economies. | For developed countries, it is an activator of further economic development with the support of Internet technologies and human development |
| Human development | Different countries have different levels of human development | Freelancers, as providers of highly skilled services with high performance, contribute to human development | Braking of human development as the most important component of national economies. | |
Offered and grouped by the author.
That is, the external factors of increasing the entrepreneurial activity in the freelance service sector in globalization conditions have a significant impact on business development. Taking into account such factors when developing and implementing the strategy of business development in the freelance sector can expand business on the basis of the influence of many factors, through the entry into new markets, the application of strategic thinking, etc
Recommendations
Building a business development strategy based on taking into account the needs of consumers and intermediaries of freelance services, internal and external factors influencing the increase of entrepreneurial activity in the field of freelance services in the context of the spread of globalization processes shows the business opportunities in specific financial and economic conditions (Figure 1).
Figure 1:A Three-Dimensional Matrix For Developing And Implementing A Strategy For Developing Business In The Freelance Service Sector In Globalization Conditions.
In an objective approach, this model creates a conceptual framework for identifying opportunities for business development in the freelance service sector, taking into account globalization processes.
Conclusion
Thus, in today's conditions of rapid development of entrepreneurship, strengthening of international cooperation in the freelance service sector, it is urgent to use a scientific approach to the development of a business development strategy. Application of the proposed approach will allow to consider not only internal but also external factors of development, develop strategies adapted to the challenges of our time, which, in turn, will increase and optimize the entrepreneurial activity in the freelance service sector in the national and world markets.
References
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