Due to the rise of the entrepreneurial ecosystem, the Importance and Benefits of Entrepreneurship in Economic Development can never be denied.
Entrepreneurship is an important element supporting the economy of a country. It serves as a backbone for the economic gains and provides millions of people with proper employment.
Presently if we are enjoying the varieties of services and products in our daily lives are due to the rise of entrepreneurship.
Entrepreneurship motivates businesses and people to adopt new ways, overcoming barriers in the direction of advancement and improvement of the economy.
If you look into the strong economy of the successful nations you will come to know what is the Importance and Benefits of Entrepreneurship in Economic Development.
The beauty of entrepreneurship is that it breaks limits and uses approaches for the creation of new and modern ways to live life. It exploits the potential of the economy, boosts growth and development in society.
Importance and Benefits of Entrepreneurship in Economic Development:
Entrepreneurship is an emerging field, its importance and benefits are numerous. Let’s have a detailed look at each of these:
Importance of Entrepreneurship in Economic Development:
The importance of entrepreneurship in economic growth has attained much attention in the 21st century.
Economists are now well aware of the long-lasting positive impacts of entrepreneur ventures in the development and prosperity of the society as well as the economy of a country.
Entrepreneurship can be a key to different roadblocks in the course of development to the economy.
The reason for that is entrepreneurs are special people having the guts to face challenges and bring about unique solutions to economic hurdles.
Moreover, these are the type of people who want to create a positive change in society and want to benefit others from their entrepreneurship venture.
Let’s have a look at the importance of entrepreneurship in the economy of a country.
Creation of jobs:
One of the foremost importance of entrepreneurship is that it creates jobs and provides employment opportunities to the people. It significantly reduces the load of unemployed people and helps the economy of the country to flourish smoothly.
Entrepreneurship deals with the new startups of small businesses and enterprises that not only provide new jobs but also strengthen the economic growth of a country.
According to the US statistics on average, 1.9 million new jobs are created annually by small businesses. According to small business administration, small businesses employ a total of 58.9 million workers.
The high statistics show that entrepreneurship is the primary provider or creator of jobs for the idle people.
If there is no entrepreneurship venture in an economy these unemployed people would surely be a burden on the economy because they would have no productivity to support or add their increment in the development of the economy.
Positive impact on GDP:
Entrepreneurship plays a crucial role in making the economy of a country solid and self-sufficient. It focuses on fulfilling the demands and needs of the people living in a country.
When there is no sufficient availability of products to fill the demands, the country depends on imports. This not only increases the cost of products but also the money transfers from that country to another which has a significant negative impact on the economy.
Entrepreneurs are the people who keep an eye on the gaps and unavailability of stuff in their region. So that they can bridge the gap and have a startup to fill those gaps and unavailability of the products and services that are needed.
Doing so increases the GDP value of the economy which makes a country prosperous and stable.
The entrepreneurs are innovative players that make use of almost every entity and extract most of the benefits out of it. They usually convert useless things into useful products.
Earning from the foreign exchange:
Entrepreneurship is a very fascinating exercise and an admirable fashion of earning for the economic growth of a country. Entrepreneurship encourages innovation and thinking out of the box.
It leads to inventions of new and sustainable products, industries and new fields. The people involved in the entrepreneurship venture have very broader limits and high vision for working and offering services internationally.
The fascinating products and services resulting from entrepreneurship full fill domestic needs and also result in high demands in the international markets.
By conducting international business it boosts the economy of a country by availing foreign exchange.
So because of this reason, entrepreneurship is encouraged in countries all over the world. Policies are being made by governments to enhance and expand it keeping in view the importance of entrepreneurship for economic growth.
Expansion of Tax network:
When the tax return is high the economy of the country is said to be stable and strong. Entrepreneurship offers job opportunities, creates enterprises and increases per capita income, as a result, more people come under the tax network.
An increase in tax revenue is one of the focused importance of entrepreneurship in the national economy.
Sales tax revenue from people:
As entrepreneurship, ventures offer jobs and new opportunities to the people of the country. It has a considerable positive impact on the livelihood of people.
It means people will have more buying power and will spend money to enjoy life and luxuries.
They will spend money on tourism, clothing, and food commodities more. This results in the circulation of wealth and the collection of more sales tax which helps the economy to flourish.
Commercial tax revenue from enterprises:
Entrepreneurship is playing a role significantly in the development of a country’s economy. In a larger frame, the importance of entrepreneurship in developing the economy is the commercial tax revenue.
As entrepreneurship gives rise to businesses and enterprises and they earn a handsome amount of money.
The governments impose large amounts of taxes on these firms that raise a country’s wealth. The government will have enough money to spend on people and developmental projects.
Benefits of Entrepreneurship For the Economy:
Entrepreneurship yields fruitful results in different forms. It helps in providing basic needs to advanced levels of benefits to the economy.
It has changed and improved the living standard of the society by introducing modern sources to live life.
In this section, we are going to analyze the 5 benefits of entrepreneurship to the economy and society. So let’s have a comprehensive look at each of its benefits.
Development of regions:
The advantages of entrepreneurship in the economy and society are very naked and it needs to be appreciated. It always promoted a better and convenient life for all in society.
Entrepreneurship directly benefited and developed weak regions of society by creating new jobs and introducing new services.
As entrepreneurship is primarily concerned with the identification of demands and needs.
- It is having a benefit in terms of business plus supplying to society for demands.
- It focuses on the needs and better use of resources in areas where the need is most.
- Many enterprises are developed in rural areas keeping in mind the employment and development opportunities of those areas.
- Entrepreneurship helps to distribute and balance development thoroughly to all parts of the country and boost economic growth in all regions.
Elimination of poverty:
One of the best benefits of entrepreneurship in the economy of the country is the eradication of poverty from the society.
People are having more income sources and good living. It thoroughly distributes the products and services in all regions.
Entrepreneurship produces businesses and job opportunities directly. It offers services and products in those areas where they are not present before. The following are the benefits of entrepreneurship regarding poverty eradication.
- Different business flourishes with the entrepreneurship which creates and generates employment for poor people.
- It maximizes opportunities for poor people to make their life better by good packages and competitive opportunities in employment and business.
- It provides attractive and multiple earning sources to individuals through their products and services.
Entrepreneurship proved to be a driver of poverty reduction and increased income sources in less developed areas. People from marginal areas can defeat poverty and be more productive to the economy and society.
Investment in Charity projects:
Besides the benefits of job opportunities related to entrepreneurship, some mega-companies are utilizing their entrepreneurship venture in the direction of humanity.
There are a bunch of entrepreneurs who spend a big amount of money on charity works. Many companies have started their foundations that are operating globally to improve life.
A prominent example is The Bill and Melinda Gates Foundation. It is one of the world’s largest private foundations founded by Bill Gates of Microsoft and his wife which have assets worth USD 46 billion.
This foundation is working globally in providing health care and education facilities in those regions where needed.
Entrepreneurs are the people of goodwill ready to help make the world a better place to live. large enterprises that earn a big amount of money are involved in many charity and community projects to promote education, improve health and life e.g
The Mario Batali Foundation educates, protects and feeds children. Mark Zuckerberg, CEO of Facebook donated USD 100 to Newark public schools in 2010.
There are many more examples of benefits of entrepreneurship for the economy, Such projects help governments and the economy a lot in sustaining and improving the standards of living.
Improving the standard and quality of life:
Entrepreneurship has played an important role in improving the standard of life. It always opposes and faced the top global challenges with governments.
Like global warming, pure water availability, sustainability in agriculture, healthy food, and climate change, etc.
Entrepreneurship is playing a significant role in maintaining health qualities in food commodities. Which is not possible for poor economies to maintain.
It created fascinating ways through technology to provide quality and healthy food in all regions of the world.
The government can not provide it because of large expanses that can drain out the economy.
There are mega-companies that supply quality milk, dairy products, processed and raw food products in those regions of the world where is a scarcity of essential foods or people can not have access to quality food or water.
Such a marvelous approach to nutrition has a dynamic impact on nurturing a healthy and productive society.
Promotion of new technology:
Entrepreneurship improved efficiency of life by providing access to the latest technology and services.
The people are now able to equip and use the latest technology to increase efficiency and productivity that strengthen economies.
For instance, agriculture technology that can support the economy by an increase in productivity. Similarly, industries use the latest technology to increase productivity, import, and exports.
Entrepreneurship provided opportunities and enabled people to compete with the world in the economic race.
It is the beauty of entrepreneurship that provides services and quality products keeping in view the needs as well as the economic conditions of the people.
Companies involved in entrepreneurship have developed variants in products at different levels to provide people technology under the budget.
Entrepreneurship is a powerful tool that boosts economic growth instantly. The Importance and Benefits of Entrepreneurship in Economic Development are numerous.
It brings new ideas and concepts of business that not only eliminate poverty but enable people to change their lives.
It aids the government in developing an economy by availing taxes and foreign exchange. Understanding the relationship between entrepreneurship and economic growth can greatly help to make policies and their promotion globally.
If there will be no entrepreneurship it will be hard for countries to support their people and provide the products and services on such large scales.
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