Entrepreneurs are individuals who have identified an opportunity on the market that others haven’t yet seized. They are bold, aspiring, innovative and willing to take risks. They are hard workers and are able to sacrifice their immediate comfort in order to create the world they envision. Entrepreneurs are often visionaries and they often blaze the trail for others to walk on.
In today’s society, they’ve finally started getting the appreciation and gratification they deserve for their tremendous contribution to the world. Let’s take a closer look at how entrepreneurs impact both the global economy and the world we live in:
1. Entrepreneurship Spurs Economic Growth
It’s been shown that in closed economies such as China and India, entrepreneurship is one key element that helps these economies fully develop and flourish. Entrepreneurs ultimately create wealth through their businesses – for themselves, for the people they hire and on a national scale, for their government, by means of taxation. Entrepreneurs usually bring forward products or services that their current society desires or needs.
This need or desire will be so acutely identified by the entrepreneur, that people will actually want to pay in order to satisfy it. This will help drive the economy forward and maybe even contribute to the export rate increase for that country. This is why it’s essential that funds also flow the other way around, in supporting systems, such as the Vocational Education and Training (VET) system, that stimulate the development of entrepreneurial skills.
2. Entrepreneurship Creates Jobs
Many of the entrepreneurs out there have started out their business after not having found a suitable job for them on the already existing job market. So they had to use their creativity and intellectual resources to create something completely new that would satisfy this need, both for them and other people in their situation.
Through the jobs they create, entrepreneurs typically contribute to forming solid communities in their society and support them in pulling out from poverty. The benefits of small-scale entrepreneurship have already been noticed in poverty-stricken areas of India and Africa, where a little support in this direction made an enormous difference for the local communities.
3. Entrepreneurship Brings Social Change
When starting out, many entrepreneurs will often have a vision on how they can improve the world they live in. Deep inside their souls, there is hope and possibility for a different kind of environment, of society and ultimately a better life for people around them. This is often the fuel that drives entrepreneurs through thick and thin and this commitment to their more noble mission will often reverberate around them, through their business.
They will often look at their surroundings and quickly see what the people in that specific community are missing. It may be a community burdened by the hardship of life, so they create a service or product that promotes creativity and positivity. Or it may be a community that doesn’t have access to a certain technological feature that would increase productivity and efficiency in their day-to-day lives. Whatever it is, entrepreneurs typically juggle with several motivations behind their arduous involvement in their business and social change is definitely one of them.
4. Entrepreneurship Fuels Competition
Another positive impact that entrepreneurship has on the existing economy is that it fuels competition among businesses. Entrepreneurs typically employ new technologies, new systems, processes and even new business models to propel their business forward. This only creates a ripple effect around them, giving a jolt to their market competitors that need to step up their game in order to remain a relevant player on the market. This ultimately spurs economic growth in that country, since it prevents harmful monopolies and oligopolies from forming on the market. Having said this, entrepreneurship also accelerates structural change within a society, since it helps remove sclerotic businesses much faster.
All in all, entrepreneurship is a path of innovation, social change and economic growth that’s gaining more territory in today’s economic environment. The best part about it is that entrepreneurship regulates itself naturally within a society. This is because the harsh, yet fair selection system will immediately remove the entrepreneurs that do not keep up with their mission and do not constantly implement the necessary steps in order to fulfill it.
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