It can be said that entrepreneurship is all about wealth creation and innovation, which involves a certain degree of risks, which are often high, and so are the returns associated with it. Entrepreneurship brings about a large number of goods and services for the society, which also aids in the growth of social welfare. The chief importance of entrepreneurship is the generation of various job opportunities through innovation which in turn contributes to the growth of the economy. An entrepreneur can be described as a highly motivated individual who is ready to risk and achieve goals. Israel M. Kirzner, a British born economist and theorist, an important academic representative and an author, observes entrepreneurs as “One who perceives what others have not seen and acts upon that perception”.
Thus, entrepreneurs lead the economy and society on the path of progress and prosperity. Here is why we need great entrepreneurs to progress and prosper the economy and society.
To Promote Innovation:
As it is said, Entrepreneurship is the incubator of innovation. Entrepreneurship opens up ways for the implementation and commercialization of innovation. Thus Entrepreneurship plays a major role in the promotion of innovation, which not only provides new ventures, products, technology, market, quality of goods, etc. But also renders funds for research and development to many universities and research institutions. This at large, also promotes general development, research, and development in the economy.
Creation of Job Opportunities:
Entrepreneurship firms generate an enormous amount of new jobs. It opens up job opportunities for not only the skills but for unskilled workers too. This also allows them to further acquire skill and education and club further on the ladder of growth. The creation of job opportunities is very important as it impacts the growth of the economy and the nation alike.
Enhances Living Standards:
Entrepreneurship creates various job opportunities that increase the purchasing power of the people. It also allows them to invest in the human capital which in the long run effectively enhances the standard of living. The Standard of living is directly related to the consumption of products and services over a period of time. Due to the growth of the various businesses, the diversity of products and services increases and so does the cash flow which inevitably enhances the standard of living. Apart from enhancing the quality of life it also profusely contributes to national income or GDP as a whole.
A Positive Impact on Community Development:
It works to the advantage of any community whose employment base is distributed over many small entrepreneurial firms. It promotes retail facilities and a higher level of home ownership which means fewer slums and better sanitation and health care. With the following higher expenditure on education. Thus, entrepreneurship brings about development and stability in the overall community lifestyle. Apart from the above it also promotes various charitable activities and initiatives. An example of great entrepreneurship is Reza Satchu Alignvest’s Co-founder. During the mid-1970s, East-Africa was not a good place to be for Reza Satchu’s Family. All the experiences in life led him to see success as having a positive impact on the community.
Political and Economic Integration:
Entrepreneurship is centered on inclusive growth as it has backward and forward linkages that can effectively bring about the integration of various minorities, migrants, and women safely into political as well economic sphere of society. Entrepreneurship often has an indirect impact on economic and political integration, and with great entrepreneurship, the development and progress in unimaginable.
