First question why entrepreneurship? And more importantly what is an entrepreneur? Entrepreneurs are usually the ones who are seen and accepted as the state resource who motivate, cultivate and remunerate to the highest probable extent. Remarkable entrepreneurs are blessed with the capability to transform the way we have been working and living.
The entrepreneurs if successful as their innovations have the possibility to bring about a massive change in living standards and eventually leading in generation of wealth with new startups, hence hereby creating job opportunities which is the biggest contribution in booming of a prospering economy. Thus entrepreneurship is significant for numerous reasons which ranges from social transformation to innovation.
1. Entrepreneurs are the inducement to Growth of Economy
Present day services and product led by entrepreneurs can give rise to a flowing impact relevant to top sectors of business which is the root for various startups, stimulating economic development.
For instance, a handful of the IT companies formed by the Information Technology sectors in our country in the early 1990s. The industry rapidly grew and numerous other sectors leveraged there from their existence. Such as BPO operations, hardware suppliers, network maintenance organizations bloomed.
It was a major contribution to the training and education institutes gave birth to a new variety of IT employees who were provided with a much better and decent paying jobs. Developments of infrastructure along with the real estate organizations did earned on this growth as the associates moved into the cities where the employment was likely on the verge of growing.
Likewise, the endeavors for the development of future in developing countries need remarkable support from logistics, predefined workforce and huge capital investments. So whether it is a skilled programmer or an individual who works in the construction, entrepreneurs are the ones who led to the major advantages in forming of the economy.
2. Entrepreneurs include a major National Income
The new ventures led by the entrepreneur’s contribution to generation of present-day wealth. The already existing companies may somehow be restrained to the markets which already have an existence and may have some income generated by conventional methodologies. But when it comes to the new companies they focus and target the whole new segment of customers and have an equal impact on the new markets which would be developed in order to addition of new wealth.
Besides the fact, hiked earning and higher employments make a major contribution in disguise of state incomes and tax remunerations and bigger government expenditures, the revenue can be taken into consideration by the government to infuse in various human capital and other sectors. However it may come up with a handful of the already existing players subtle, the government can ease the impact by re-channeling the additional income to sustain the workers.
3. Entrepreneurs add to the social change
With the ability of supplying new goods and services, entrepreneurs are the ones who step out of the classic methods of trade and minimize the reliability on outdated mechanisms and technologies. This later becoming the cause of enhanced life quality, morale and higher economic freedom.
For instance, the water supply in a region where the water is short in supply will sometimes pressure the people to avert working to accumulate water. This intern makes a greater impact on the productivity, income, business and eventually income. Just think of an inventive and automated water pump which can fill up the water containers for the people on its own. Such an innovation helps the people to be ensure that they are now having the full freedom to concentrate on their respective jobs without thinking too much when it comes to a basic necessity which is water i.e. source of life. Hence this results to more time being devoted to the work which later results into economicgrowth.
For a more present day instance, the smartphones, PDAs, applications have changed the work completely and the same have happened across the world. Smartphones is something that is owned by the ultra-rich of the society but due to entrepreneurship the same is owned by the middle class people at the same time. As the rise of smartphone market is on a continual growth track, the technology and the entrepreneurship have a much sturdy, quite longing effect on the world
4. Development of community
Entrepreneurs on a regular basis develop new companies by collaborating or working with people who have alike-mindset. They do invest in the projects with respect to the community development and offer the financial backing to the regional charities. This lets the further development go beyond their own. Renowned entrepreneurs such as Bill Gates, made the best possible use of their heard earned money to provide their good cause a financial backing so as to promote education and improved health of the society. This has entirely changed the world’s way to what use the wealth could be, by paying it forward for a noble cause.
5. Major Highlights
The successful entrepreneurs contribute to the economy by
- Entrepreneurship is of great significance as it does have the ability to bring about a massive change and enhance the living standards and generate wealth, not just for the entrepreneurs but for the relevant businesses.
- Entrepreneurs also play an important role in order to bring out innovation whereupon the new products and services let the development of new markets.
- With respect to the economy, hiked earnings all thanks to the entrepreneurs which are the root cause in both helping and maximizing the tax income and national revenue.
- Not just that, entrepreneursmake a massive contribution such as investing in community projects and at the same time providing great support to the local charities.
- Excess entrepreneurship or in other words high self-employment can be a damaging reason to the development of the economy.
- Entrepreneurship is actually a high powered procedure of generating moderate wealth and inventing products and services which have an impact on the market and entrepreneur as well.
- It does offer civilization with huge stock of goods and services which leads to the improvement of social welfare.
- The person behind the entrepreneurship (entrepreneur) is a person who is more practical and highly encouraged people who are ready to go any extent in order to reach the goals
Is Entrepreneurship good?
By any chance is entrepreneurs and their development a harm to the society? Is there any capping to the number of entrepreneurs a country can have?
For this question the best possible example can be taken from developed country like Italy. It is a country where the hiked levels of self-employment have proven to be hazardous to the economic development. The analysis shows that Italy lately has seen some drastic negative impacts on the economic growth due to the rising self-employment. This may be the truth as someone said that too many chefs destroy the dish. Therefore clarifying the question why are entrepreneurs important to the economy.
6. The Government’s Role
The Directive (regulation) plays a huge role in the entrepreneurship development. The irregular entrepreneurship may result into social outcomes such as irregular pricing, unjust marketpractices, rising corruption and illegal activities.
Research from the United Nation University shows that the probabilities of the effect “over-development” entrepreneurship. A renowned European economist said that though entrepreneurship may contribute to the material welfare and economic growth, it may no matter what cause the enhancements of non-material well-being. Advertisement of happiness is seen to be growing as a must to achieve goal. This explains us why is entrepreneurship important.
Anomalously, a huge number of entrepreneurs may result into an outrageous competition and can cause billions in losses and career determination of the youngsters. With the number of high entrepreneurs, the aspirations usually go on the verge of the probable rise. This is relevant to the successvariability whereas in the entrepreneurial startups/companies/organizations, the situation of acquiring way too many entrepreneurs may too be a major reason of income unjust, which will thereby make the citizens unhappy.
7. Promoting the Research and Development
Entrepreneurship is another word for innovation. Inventions of the goods and services has to be put to test for knowing whether it is of expected standards. As and when entrepreneurship enters in an economy there is chances of great development especially in the research and development sector of a nation. Hence we come down to the conclusion of why are entrepreneurs important.
The Final Words
The connection between the development of the economy and entrepreneurship is having a huge significance for the ones who craft the policies for betterment of the venture owners. Having a complete understanding of the advantages and disadvantages of entrepreneurship lets a balance nurture of approach which could be taken into consideration. And hence as a final result it brings about the economic and social impact on the positive side. This blog helps us to understand importance of entrepreneurship.