“An entrepreneur tends to bite off a little more than he can chew hoping he’ll quickly learn how to chew it.”
Yes, Roy Ash shows the fact of entrepreneurship.
The days had gone when Entrepreneurship has ignored because the impacts were diffuse, incremental and small. Nowadays, entrepreneurship is considered “gardening” in a place of “hunting.”
The economy has changed dramatically, and with these sudden changes, we must adapt ourselves to this new reality. However, this economic development is hugely related to entrepreneurship. You may surprise, why entrepreneurship is important to economic development? Well, to get the answer about how it plays a vital rule in the economy, keep reading this article to learn everything to be an entrepreneur.
So what is entrepreneurship?
Most of the people have this misconception that entrepreneurship is a modern concept. So when did entrepreneurship start? The word entrepreneur first appeared in a first dictionary in 1723. In French, Entrepreneur means loanword. In Great Britain, the word “adventurer” was compared with “Entrepreneur.”
Entrepreneurship is the dynamic process of designing, introducing and running a new business. Initially, it looks like a small business. Hence, the people who generate these businesses are named entrepreneurs.
Entrepreneurship is the act of being an entrepreneur who takes the initiative and risk. And the ultimate goal is to make a profit. The entire process often described as the ability and willingness to create, and manage a profitable business venture.
Importance of Entrepreneurship to the Economy
Entrepreneurship is considered as the “cradle of political economy.” By this single sentence, you can assume how much important it is in the economy.
As a small business owner or startup founder, you may think that you are just working to establish your own business to provide a stable life. But the reality is you are doing more than that. Here are top 7 noteworthy contributions of entrepreneurship to the economy.
1. Developing communities’ and countries
While communities need more jobs for fresh graduates, entrepreneurs start a new business. So they need skilled people for their organization. So instead of being a burden for society, they create the job opportunity.
The fact is that, if there is no entrepreneur, there won’t be any business. And the result, no jobs for fresher. Meanwhile, it has a great impact on communities and countries development. New entrepreneur means new ideas. So they provide a new solution to old problems. That’s why entrepreneurs are special.
Entrepreneurship is considered as the incubator of the revolution and innovation. Meanwhile, Entrepreneurship and Innovation are recognized as key building blocks of dynamic economies. In a word, entrepreneurship nurses innovation that makes a new product, venture, technology, quality of good and markets.
Countries, state and regions with entrepreneurship ecosystems and vibrant innovation tend to observe higher productivity rates. So it has an impact on increase country’s Gross Domestic Products.
According to the World Bank Group, entrepreneurship and innovation are crucial to addressing major developmental challenges, like sustainability, inclusion, and shared prosperity. However, Innovative entrepreneurship encourages economic dynamism.
3. Promotes research and development
As we mentioned earlier, entrepreneurship is innovation. Hence, those innovated ideas have tested by various experimentations. That’s why entrepreneur invests decent funds for the research and development. Therefore, entrepreneurs are considered as the pioneering zeal that presents new events in our civilization.
4. Enhances standard of living
Increase standard of living is likely another crucial goal of economic development. You may wonder how entrepreneurship plays a key role in Enhances standard of living. Well, they have an impact not just by creating a new job, but also by adopting the innovation that ensures to improvement in the overall quality of organization’s employees, stakeholders as well as customers in the community.
Through their new offering of products and services, they break away the tradition by reducing dependence on a typical system. Therefore, they improve our quality of life, greater economic freedom, and improved morale.
5. Provision of a variety of job opportunities
By nature, an entrepreneur is job creators, instead of job seekers. In a nutshell, if one’s become an entrepreneur, he won’t be a job seeker. At the same time, he will offer employment to another job seeker. That’s why different state and countries have launched various initiatives to support and promote new startup.
6. Technological Development
Today we live in the age of technological revolution where competition is mainly knowledge-based. So in modern life, technological innovation becomes in center stage. However, entrepreneurs develop the latest products from an innovative idea. The fact is every business core aim is to make the profit.
Technological innovation by entrepreneurs contributes to providing new goods and services which revolution human lives. Moreover, there is a rapidly growing interested in the connection between technological innovation and entrepreneurship.
For example, App and smartphones have revolutionized the communication across the global. Nowadays, the Smartphone is not only exclusive in some wealthy people or countries. The best example is the growth of China’s smartphone industry. So we can say entrepreneurship will make profound impacts on our human race.
Meanwhile, the globalization of technology gives the opportunity to get all the facilities as same as the richer countries get.
7. Balanced Regional Development
Entrepreneurs set up new industrial units. However, it helps in regional development by establishing in backward areas. Meanwhile, the growth of business and industries in these less developed areas leads to different infrastructure improvements such airport, rail links, water supply, stable electricity, hospital, water supply, shopping mall, and various public as well as private services which aren’t available in that area.
With every new organization that locates in the backward area will create different both direct and indirect job opportunities. Therefore, it helps lifts overall regional economies.
To wrap why entrepreneurship is important to economic development article up, we could say Entrepreneurship is a multifaceted phenomenon. This state-of-being analysis is one of the supreme factors in the economic development of a region.
There is an interesting interaction of economic development and entrepreneurship maintains important inferences for development institutes, policymakers, change agents, business owners, and charitable donors.