An entrepreneur is an individual who undertakes the risk of starting a new business venture. The process of setting up a business is called entrepreneurship. Entrepreneurs play a key role in any economy, bringing new ideas to the market. An entrepreneur is often seen as a source of new ideas, goods, services, business, and procedures.
Entrepreneurship is often considered a national asset, and entrepreneurs are the drivers of that asset for any country. It is a dynamic process that increases wealth and creates value that results in improved well-being. Therefore, the role of entrepreneurship in the economic development of the country is very important and it is the indicator of the countries’ social wellness. Not only economic development, it also provides job to the unemployed, increases the standard of living, inspires other people to become an entrepreneur and many more.
Importance of entrepreneurship
In entrepreneurship, resources, labor, and capital are utilized efficiently. Entrepreneurs take on risks in the hope of making a profit. The importance of entrepreneurship is so broad and here are some points that shed some light on the role and importance of entrepreneurship.
Entrepreneurship enhances economic growth
Entrepreneurship plays an important role in enhancing a country’s economic growth. Many unemployed people find a job through it directly or indirectly. By creating new products and services, it increases the exchange of money in the country. A large number of new jobs and opportunities are created by entrepreneurship. Entrepreneurship creates a huge amount of entry-level jobs which are important to turn unskilled workers into skilled ones. It provides the workers the experience needed to work in large industries. The increase in employment of a country largely depends on the rise in entrepreneurship. Enhancement of entrepreneurship results in faster economic growth and alleviation of poverty in the country.
Entrepreneurship promotes innovation
Bringing innovation to society and industry for its betterment is one of the most important functions of an entrepreneur. With the right kind of research and development, entrepreneurs bring innovation that opens the door for new ventures, markets, products, and technology. So, by producing new products and services or bringing innovation to existing products and services, entrepreneurship has the potential to improve people’s lives. By providing these services, it also helps in increasing the standard of living of people. So, the role of innovation in entrepreneurship is huge.
Entrepreneurship promotes social change
Through their unique offerings of goods and services, entrepreneurs break the tradition and reduce the dependency on obsolete methods and technologies. Entrepreneurs are the pioneer of bringing new technologies and systems that bring change to society. This results in improved lifestyle and economic development. In this way, social changes gradually impact global changes.
Entrepreneurship promotes research and development
Apart from producing new business ideas and thinking out of the box, entrepreneurs also promote research and development. They develop new ideas and turn them into a successful business endeavor. Entrepreneurs are people who always work to discover new ideas and improve existing ones. Their impact extends beyond their companies and ventures. When an entrepreneur develops new products or ideas, others follow them and sometimes further develop the ideas. They motivate each other, share ideas and inspiration, and planning to establish new industries. So, the importance of entrepreneurship to the economy is multi-functional.
Entrepreneurship impact community development
Entrepreneurs nurture entrepreneurial ventures by other like-minded people. They provide financial support to local charities which helps in further development beyond their ventures. Thus, the role of entrepreneurship leads to a more stable and higher quality of community life.
Entrepreneurship improves the overall development of a nation
The overall development of a nation is proof of how important entrepreneurship is. Due to the advancement of various industries, it opens job opportunities to the unemployed. It also increases their standard of living and quality of life.
Entrepreneurship is important and can improve the standards of living of people. In addition, promoting entrepreneurship can have a positive impact on the country’s economy and existing businesses.