6 Reasons Why Entrepreneurs are Important to the Economy

6 Reasons Why Entrepreneurs are Important to the Economy

Entrepreneurship can be considered a national asset, and entrepreneurs are the drivers of that asset for any country. It is a dynamic process that not only increases wealth and but can also create value that results in improved well-being.

Entrepreneurs are risk takers in the business world. They start up or invest in small companies and generally take all the risk inherent in them. Great entrepreneurs have the ability to change the way we live and work, on local and national bases. Their innovations may improve standards of living, and in addition to creating wealth with entrepreneurial ventures, they also create jobs and contribute to a growing economy and also can generate great wealth if the venture is successful because they take much of the profits.

The relationship between entrepreneurship and economic development is important to understand for business owners. Understanding the benefits and drawbacks of entrepreneurship allows a balanced approach to nurturing entrepreneurship to be taken, which can result in a positive economic and societal impact.

Here are 6 reasons on why entrepreneurs are important to the economy:

1. Entrepreneurs provide useful goods and services (or supply what is demanded in goods and services)

Individuals often resort to entrepreneurship to provide niche solutions or to use their creativity, technological knowledge, or finances to generate their own income. Innovative ideas and inventiveness are foundational driving factors for entrepreneurs which result in great contribution to the economy.

2. Entrepreneurs create employment (or give workers purchasing or buying power)

The most important way in which an entrepreneur helps improve an economy is through the creation of jobs. Their actions, vision, ideas and risk taking – if successful – can result in employment opportunities for thousands of people for generations to come

3. Entrepreneurs earn profit (or money) which makes the economy grow

The new products or services created by entrepreneurs result in new wealth from the new markets. Additionally, higher earnings due to entrepreneurship can help boost national income. This is in the form of higher government spending and tax revenue, resulting in investment in struggling sectors and human capital.

4. Entrepreneurs help other entrepreneurs (suppliers, sub-contractors) grow

We often think of entrepreneurs as inventing totally new products and ideas, but they also impact existing business. Since entrepreneurs think differently, they can come up with innovative ways to expand and develop the existing enterprises. For example, modernizing production processes, implementing new technology in the overall distribution and marketing processes, and helping the existing enterprises to utilize existing resources in more efficient ways.

5. Entrepreneurs help in the development of rural areas (or small towns and cities)

thus stopping migration of rural people into Metro Manila or other big cities A large number of new jobs and opportunities are created by entrepreneurship. Entrepreneurship creates a huge number of entry-level jobs that can help people from rural areas.

6. Entrepreneurs help the country save capital by providing the goods we used to import from other countries.

Entrepreneurs are innovators who find new ways produce goods and services or who develop new goods and services to bring to market. These goods and services can later create a big impact internationally when done successfully.

Entrepreneurship is considered crucial to a dynamic economy. Entrepreneurs create employment opportunities not only for themselves but for others as well. Entrepreneurial activities may influence a country’s economic performance by bringing new products, methods, and production processes to the market and by boosting productivity and competition more broadly.

Supporting and promoting entrepreneurship can have a positive impact on the country’s economy that is why JLSMEBC’s advocacy to support aspiring entrepreneurs and small business owners is our key goal. We know that in helping and guiding these start-up businesses or those who already have their business running, can be great a contribution to our society.

Come talk to us and let us know on how we can guide you through your business journey.

Reference:

https://bizfluent.com/info-12014695-5-reasons-entrepreneurs-improve-economy.html

https://www.gbslepgrowthhub.co.uk/news/5-benefits-of-entrepreneurship-in-the-economy

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