Entrepreneursare individuals that founds and run a small business considering all the risksand rewards of the venture rather than working as an employee. They arecommonly seen as an innovator, a source of new ideas, goods services andbusiness or procedures. Entrepreneurs play a important responsibility in anyeconomy.
These are the individuals who possess the skills and initiativenecessary to foresee current and future needs and bring good new ideas tomarket.So how do entrepreneurs contribute to the economicdevelopment of a country? First off, entrepreneurs have to invest in productsand services people need. To keep up with the world’s economy they have toinvest.
They generate new businesses in response to unmet needs and demands inthe market. This creates a chance to provide a product or service that is not currentlyin existence or otherwise available. What an entrepreneur contributes willaffect the economic progress. Any entrepreneur will invest in products andservices which the people need. Upon his or her investment will in turn ensurea better life for the people. More goods and services will be at theirdisposal. Every decision a company makes is an investment and leaders canfurther distinguish these investments into two categories which are asset andbusiness.
For example, entrepreneurs can invest in capital which has theability to increase labor productivity. This in turn provides job opportunityfor the people. Superior capital equipment directly makes individuals,businesses and countries more productively efficient. Increased productiveefficiency leads to increased standards of living hence serve the purpose ofeconomic growth.Another way that an entrepreneur could contribute tothe economy is by employment. An entrepreneur by setting up various businessesand establishment is generating employment in the economy. To keep surviving,people need to be employed.
This is a major contribution that an employer canmake to supply income to an employee who can meet his or her needs. Forexample, new businesses need to hire employees. Entrepreneurs create jobs andthese economic opportunities uplift and support communities through increasingthe quality of life and overall standard of living.Besides that, the 21st century provides newtechnologies which promote efficiency. The ability to turn ideas into newproducts and services that people need is the core of prosperity for anydeveloped country. Generally, economic growth is driven by the creation of newtechnologies and their creative applications. Periods of rapid innovationhistorically have been accompanied by periods of strong economic growth. Thestimulus of innovation is the greatest is the greatest natural resource of allwhich is the human mind.
Creating innovative products and solutions requires aneducated population and an environment where collaborative work can take place.In addition to being good for business, education increases workforce creativityand quality of life.Usually, when an entrepreneur starts to innovate,there is also a competition.
In essence, there is a positive feedback loopamong innovation, entrepreneurship and economic development. New and growingbusinesses represent the principal sources of job creation and innovative activityin an economy, two factors that generally result in the rising standards ofliving for all. However, it is important to understand that entrepreneurshipand innovation are dependent on access and participation. For entrepreneurs tobring new ideas to life, they need access to education and a level-playingfield on which to compete.
Therefore, the role of government leaders and publicpolicy is to create conditions that allow more entrepreneurs to startbusinesses by implementing policies which nurture that environment so thosebusinesses can grow. Economic growth suffers when entrepreneurial activity is unevenlyspread socio-economically, demographically and geographically. Under the rightconditions, entrepreneurs have an incredible by helping regional areas toprosper economically and they also serve society as they help engineerinnovative solutions to problems and challenges. Innovation is and willcontinue to be crucial when it comes to addressing the enormous environmentalchallenges we face today such as combating climate change, lowering globalgreenhouse gas emissions and preserving biodiversity in the environment.
Without power for extended periods of time, commerce comes to a halt. Withoutwater, we cannot live. Reliable access to these innovations such as irrigationtechnology, electricity and urban infrastructure increases productivity andenhances economic development. Therefore, the diverse contribution by entrepreneursin the development of the economy can encourage the rapid growth of themarketing world that is constantly changing our lives. As a result,entrepreneurs have to play an important role in a market as they are seen asagents of change. While the change is economically based, the implications arefar reaching, affecting other aspects of society such as social, cultural andpolitical.
That is why the entrepreneur is willing to take the responsibilityand taking business risk to create and expand their business in order toexplore more opportunities. Entrepreneurs are seen as beginners and they alsoassume the role of a manager. Entrepreneurs have to observe the four factors ofproduction which are entrepreneur, land, labor and capital to enhance thedevelopment of the economy. They are formed to lead their own business and tocultivate and offer new ideas for economic growth and individually prosper.Moreover, entrepreneurs have to be good in planning and strategically manage tomake a decision and always strive to excel in their businesses. Therefore,failure can be avoided which could pose a threat to an entrepreneur.
In a scenario, a social entrepreneur is motivated toimprove and transform social, educational, environmental and economicconditions. Social entrepreneurs are for social improvement and not for thesake of money. They present their ideas that are user friendly and ethicalwhich applies innovative solutions to support them in order to expand the largenumber of people to tackle their ideas. The challenges and success of effectivesocial entrepreneurs include the failure and lack of status acceptance. It isimportant to drive an emotional desire to the social and economic conditionsand not only by the desire for profit. They seek for the best solutions toresolve the problems that they face.