Ten Importance of Entrepreneurship
Entrepreneurship is an essential part of economic development. Economic development is a reflection of the economy. Entrepreneurship is the behavior of creating new, innovative to make people’s lives easier. It helps to set up a profitable business and also for the public.
Importance of entrepreneurship:
- Job opportunities
By creating new products and services, there is a high possibility to give employment to the unemployed. It ultimately results in the acceleration of economic development. so, the public that encourages and supports entrepreneurship should be considered important for economic growth.
- Free market evolution
The importance of entrepreneurship is very essential in a free market nowadays because it helps the market to change their prices, ideas, and goods according to consumer preference. For example, the entrepreneur gets a chance in many ways like starting a platform to study live, starting home delivery, online marketing, online booking, etc….
Without entrepreneurs and their innovative skills, the market would be slow and static, and still, people would have followed the old trends.
- Promote research and development
Entrepreneurship is itself a root of innovation. In entrepreneurship often the ideas of goods and services are tested by experimentation. entrepreneurship will provide funds for research and development to universities and institutions to do experiments. They promote research and development in the economy.
By doing experiments on goods and services through universities, will get to know, which idea is better and which idea will attract people. And this way becomes very easy for entrepreneurs to know how many goods they have to produce and easy for the public to know more about new products.
- Entrepreneurship can promote social change
Entrepreneurs act as the foundation for all businesses and enterprises. These entrepreneurs can change or break the tradition or culture of society and reduce the dependency on absolute methods, systems, and technologies. These will ultimately bring changes to society.
The changes such as improved lifestyles, generous thinking, better morale, adopting new technologies, production of new commodities, establishing new industrial ventures, generating new employment opportunities, and building new and progressive environments, etc…
Social changes gradually impact national and global changes. So, the importance of social entrepreneurship must be appreciated.
- The consequence of business failure
Normally, if a large industry collapses, the industry has almost irresistible damage to the development of the state and state of the economy and the financial condition of relevant persons. And there will be an increase in unemployment also.
The incumbents lost their jobs. Suppliers and financial institutions face a crisis of recovery. Customers will face losses of goods, lack of services, and government losses, and taxes. If entrepreneurship fails, the above things should not happen.
There shall be no measurable effect on the economy and no political repercussions too.
- Enhance the standard of living
The standard of living is a concept built on an increase in the amount of conception of a variety of goods and services over a particular period by a household. So, it depends on the availability of different products in the market.
Entrepreneurship provides enormous kinds of products of various natures through their innovations. Besides, it increases the income of the people who are employees in entrepreneurial enterprises. By enhancing the standard of living, entrepreneurs help to lead society toward progress.
- Establishment of new industrial enterprises
The business and industrial entrepreneurs do not feel contended only establishing enterprises, but they establish new enterprises to make the country self-reliant, by establishing new enterprises, people will get jobs as no one will be unemployed, the economy of the country will increase, can explore new ideas and innovations as trial and error method.
For example: In India, Tata Birla, Dalmia, Singhania, Bajaj, and Ambani are among several entrepreneurs who have established various enterprises one after another to develop the national economy.
- Contribution to the development and expansion of existing enterprises
Entrepreneurship plays an important role in innovations, development, and expansion of the business.
Entrepreneurs make regular efforts to increase the number of products in their existing enterprises, modernize the existing production process, produce new commodities, develop their markets, and increase the clientele, by keeping the products and business an attractive way to customers, by training employees in taking with customers convincingly or attractively, keeping needy products in that amount of season as,
example: If the rainy season is there, then attractive and new umbrellas have to keep to more income and to increase clients
- Impact on community development
A community is better off if its employment base is divinified among many small entrepreneurial firms. It promotes abundant retail facilities, A higher level of homeownership, fewer slums, better sanitation standards, and higher expenditure on education, recreation, and religious activities.
Thus, entrepreneurship leads to more stability and a higher quality of community life. Some famous entrepreneur like Mark Zuckerberg, Bill Gates, and Ellon Musk have used their money to improve people’s living standards, proper health care, and education system.
These qualities of an entrepreneur inspire or influence other entrepreneurs to take it forward.
- Digitalizing business operations
Because technology evolves so quickly, a business product or service can be rendered obsolete due to new technology’s entry. An entrepreneur is responsible for continuously updating the technology which they use in their business process or activities.
Entrepreneur roles regarding technology include:
- Disposing of equipment that is not improving profitability.
- Organizing training for staff to help them familiarize themselves with the latest technological programmers in the market to improve efficiency.
- Using the most popular and recent marketing method and idea will help you to reach your target.
- To sum up, supporting and promoting entrepreneurship can have a positive impact on the country’s economy and even existing businesses, and social entrepreneurship increases the likelihood of finding innovative solutions to social challenges faced by communities around the world. The role and importance of entrepreneurship in economic development change from time to time based on the availability of resources, the climate of industries, and how responsive the political system is. More contribution has done by the entrepreneur in favorable conditions as compared to the nations with unfavorable opportunity conditions. It is crystal clear that entrepreneurship acts as a catalyst in the development of the nation’s economy.
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