Role of Entrepreneurship in Society
Entrepreneurship is very important because it can improve living standards and create wealth for entrepreneurs and related businesses. Entrepreneurs also help drive change with innovation, where new and improved products enable new markets to be improved.
We must understand that role of entrepreneurship in society is very crucial. It creates a long term impact. Entrepreneurs work towards addressing social issues through their startups.
There is great importance of entrepreneurship in economic development too. It has the capacity and willingness to develop and participate in a business venture to create a profit regardless of the financial risks involved. The role of entrepreneurship in all economies is critical, as it contributes to the socio-economic development of societies in many ways.
Role of Entrepreneurship
Below are some ways that Entrepreneurs play a major role in society. Let us find out more about them.
Entrepreneurs Are Innovators
Technology is quickly changing the fabric of every nation’s workforce. Old, blue-collar manufacturing jobs are reducing, and other occupations don’t exist anymore. For example, telephone switchboard operators, movie film projectionists or elevator attendants.
Entrepreneurs observe such changes and step in to fill the voids. They also observe the negative consequences and the losses of some occupations caused by technology. However, they sense opportunities in the new landscape. Thus, entrepreneurs innovate. They make new products and services with advances in technology that create possibilities.
The best example is Steve Jobs. He knew everyone liked music, and he suspected people would like to have their collection to carry everywhere. Therefore, there was some innovation in the iPod. Apple sold millions of iPods and was to develop more related products.
Entrepreneurs Create Jobs
As entrepreneurs initiate new businesses, they need to recruit employees. These new companies become engines of job creation. According to the Small Business Administration, small companies have created 65% of new jobs since the recession.
Entrepreneurs make entirely new industries and opportunities for employment. Let’s say a football coach in Nebraska. It was noticed that young athletes received their coaching when they were on the practice field; however, after they left, they got absolutely nothing. So, he did a business that collected videos for sports training and put them on a website.
Hence now aspiring athletes can get professional instructions and practice anytime and anywhere at their convenience. This company now has more than 450 employees in the United States of America and six other foreign countries. None of these jobs existed before this coach in Nebraska started its business.
Entrepreneurs Raise Standards of Living
Entrepreneurship is a procedure. Entrepreneurs observe a need in the marketplace and use their innovative talents to search for a solution. They start a new business and recruit employees. The workers earn a salary, which they spend in the local economy. All of this creates wealth for the population and raises the standard of living for anyone involved.
Studies from economists show that productivity increases improve the standard of living for a population. The procedure of entrepreneurship leads to more productivity. Innovation applies more efficient technologies to make something new, innovative or improved. It finds more ideal ways of doing something.
As a result, employees become more efficient. Profits go up, and costs go down. Incomes rise, and demand increases. In conclusion, the economy gets stronger, creating many jobs.
Entrepreneurship makes Economic Growth.
It is important to know how entrepreneurs contribute to the economy.
Starting with new businesses generating wealth for the population, new markets add wealth to the economy when entrepreneurs invest their own money to make innovative products and services. Lenders and other investors contribute more capital to the new ventures to give more funds at work.
Businesses pay taxes on their profit, and later employees pay taxes on their salary. The government takes this income and spends it to stimulate the economy.
The gross domestic product is a measure of a country’s economic status and improvement. A strong economy increases the gross domestic product per capita of the country. Improving gross domestic product is a very important goal for economic development because each individual is becoming more productive and earning more money.
Entrepreneurs Change the Community
Entrepreneurs play an important role in the community.
A business initiated by an entrepreneur makes a big impact on the local community. The new company creates more employment by hiring employees who spend their income in local stores, doing more business for those owners. The success of one business makes the progress of other organizations.
Let’s say the new business needs well qualified, educated employees with specific skills. A community may respond by creating technical training schools and intern programs that give these workers. Everyone profits. The company gets the workers it wants, and the community gets a more qualified, educated population with higher incomes.
Bottom Line
Above are some main functions of an entrepreneur that can help develop the economy to a great extent. It will not only build the country in the right direction but also change society.
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