The importance of entrepreneurship in a country and its economic growth is remarkable. If countries declare it as a national asset, it will not be illegitimate.
Entrepreneurship is the indicator of countries’ economic development and social wellness.
Not only economic development, but it also provides jobs to the unemployed, increase the standard of living, inspires other people to become an entrepreneur and solve other’s problem and many more.
Therefore, one can measure how to prosper a nation is by analyzing how supportive that country is to its entrepreneurs. That much impactful it is in countries’ overall enrichment.
Now you may think why I am giving so much emphasis on the importance of entrepreneurship.
Why is entrepreneurship so important for a country’s overall development?
Now there are several reasons behind it.
These 11 reasons will show you why the importance of entrepreneurship can’t be ignored.
Importance of Entrepreneurship
Enhance Economic Growth
Entrepreneurship plays a very important role in enhancing a country’s economic growth. When entrepreneurs build businesses, it affects every part of the economy.
For example, when someone starts a car company, many companies started to confide on it. Some companies are started to supply raw materials to it, some are providing essential services and machinery to it, and some institutions train their employees to improve efficiency and a lot more building their small enterprise to support the big one and make a profit.
A big number of unemployed find a job through it directly or indirectly. Because of new services and products developed by entrepreneurs, it increases the exchange of money in the country and abroad also which spur economic growth.
Due to having businesses, investors from the different regions show great interest in investing their money which flourishes economic development in any developing or under developing country.
Besides those, enhancement of entrepreneurship environment results in the improvement of infrastructure which faster economic growth and alleviation of poverty in the country.
Inspires others to be Entrepreneur
Entrepreneurship inspires them who aspire to be entrepreneurs.
Entrepreneurs inspire others to become an entrepreneur through their action and innovation.
They are different; they see and do things differently. When people are struggling with their problems, entrepreneurs struggle to solve others’ problems which could be inspiring for a lot of people.
They bring life-changing innovation to society which inspires others to do the same.
Most importantly, entrepreneurs contribute to social welfare and development of the social community through charity or sometimes directly. We often see businessmen donated a big portion of their wealth for the betterment of the country.
This is how an entrepreneur and entrepreneurship inspire others to have the same and contribute to the nation’s upliftment.
Improve Standard of Living
The standard of living refers to a certain level of wealth, various types of goods and services, materials, comforts and all the necessities available to a definite portion of people.
Now for all these, entrepreneurs bring new products and services in the market within the purchasing power through their innovation.
To function their business, they need employees.
Therefore, entrepreneurs hire employees. Now because of having a job or source of income, people can consume the necessary goods and services.
Consequently, entrepreneurs help in increasing the standard of living of a nation.
Bringing innovation to the society and industry for its betterment is one of the most important functions of an entrepreneur.
The importance of innovation can’t be ignored as it paced up the growth of the nation and the note of innovation provides the light they need.
Entrepreneurs build businesses to fill the gap in society and industry through their innovative ideas, useful product, and sincere services.
By making these various lives changing products and providing services also helps in increasing the standard of living of different levels of people.
Ford was not the first car when it launched in 1908. But it was the cheapest and easiest to drive back then. That time, people used to ride horses for traveling, and people who have it known as very rich.
It was Henry Ford’s innovation which changed the way people see a car forever. It was so cheap at $825 in 1908 and it was continuously decreased with the increasing number of sales.
In a very short time, Ford became the most popular and sold car in America.
So, what’s different in Ford?
What makes it special?
Nothing much, Henry Ford just innovates on customer‘s demand. People want to buy a car, but they want it cheap and comfortable to be in.
That’s the power of innovation.
Entrepreneurs’ ability to innovate their ideas shows the importance of entrepreneurship.
Create New Job Opportunities
Business enterprises are one of the biggest sources of jobs in a nation.
When it comes to building or expanding a business, they need people to conduct their operations.
As the business grows, the job opportunities are opened naturally for others.
Consequently, as the business flourishing; suppliers, distributors, couriers, services, agencies, and training center…. all of them are benefited from it.
This helps to create the job in these small enterprises too, and in this way, the cycle continues.
Creation of New Products and Markets
An entrepreneur always plunges into discovering new possible products or services and markets.
Entrepreneurs’ capability to invent allows them to provide new value to the market place.
For example, When Steve Jobs and his team invented the iPod it was new to the market. That creates a new industry in the market.
Today, the MP3 player is a big industry with lots of competitors.
Entrepreneurs have the quality to envision the future which helps them in developing the products or services in advance to fulfill customers’ future demands or needs.
Impact of Small Enterprises on Economy
Research shows, small enterprises have a bigger impact on national economic growth and community development than we might think.
Because most of the small businesses operate locally, their hiring of local people can have an enormous impact on not only the national economy but on the community and its people.
Small enterprises also have a huge impact on GDP and job creation.
The study appeared a 13.9% growth in job creation in the Micro, Small and Medium Enterprises (MSME) sector over the last 4 years, which is a 3.3% increase per annum.
Besides, small enterprises are just as unique and different as their owners.
Though they are small in size, you can’t underestimate them as they also bring innovation in their products and reveal new techniques of conducting business which is well learnable for big enterprise also.
Influence Change in Society
Entrepreneurs bring social change through their innovative problem-solving instinct.
They build big businesses not only to make a profit but to solve a specific problem a group of people struggled with.
Mark Zuckerberg, the founder of Facebook.com, never builds it to make money. He just wants to connect the whole world on a platform.
Enass Abo-Hamed, a renewable energy maker, brings affordable reliable energy to millions across the globe in a green way for large social and environmental impact through her company H2GO Power.
There are many more entrepreneurs like these fetching real changes in society through their work.
Contribute to Community Development
Entrepreneurship impacts the community in many ways.
The job provided by enterprises increases the standard of living of common people. They also bring unique goods and sterling services that improve the quality of life of communities’ people.
Entrepreneurs impact the native community by giving charity, needed water and food, health care services and many more.
An entrepreneur not only earns money, but they also donate it in foundations and organizations.
Bill Gates, one of the richest men in the world spends his money through the Bill & Melinda Gates Foundation to enhance healthcare and reduce extreme poverty.
This example shows us the importance of entrepreneurship for the betterment of human life. They started with nothing and now got everything, but they don’t keep it to themselves, they pay it forward.
Entrepreneurs often got revolutionary ideas that implement bring a drastic change in the world.
For example, the mobile phone may be the biggest revolutionary product of the century. It brings everything we want within our hands.
The globalization of technology brings us all in the same pot.
Because of it, everyone has the same facility no matter in which part of the world you are in.
The massive revolution of technology makes everything gettable and cost-effective. It allows everyone to compete with their counterparts from any given part of the globe.
Overall Development of Nation
The overall development of the nation is proof of how important entrepreneurship is.
The constant rise of the company affects several sectors and gives them the convenience to grow with them. Like progress in, education sector, training schools, infrastructure, different material supplying companies, etc.
Due to the advancement of various industries, it opens the opportunity of jobs to the unemployed.
Because of having a job, they can increase their living standards and quality of life. It also accesses their children to better education.
It’s a long list of how the nation’s overall development depends on entrepreneurship.
Hope this article helped you realize that the importance of entrepreneurship can’t be ignored.
The real growth is when everyone got the same amount of opportunity to grow.
The development of entrepreneurship culture in countries’ environment is essential for further growth.
From economic growth to inspire others, bringing innovation, creating job opportunities, improve the standard of living…. all of these are impacted by entrepreneurship activities.
Did we miss something?
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Tell us how important is entrepreneurship to you and why?