Entrepreneurs invest their own resources and attract fund (in
the form of debt, equity and more) from investors, lenders and the public. This
deploy public wealth and allows public to gain advantage from the success of
entrepreneurs and developing businesses. This kind of pooled capital that
results in wealth creation and distribution is one of the basic imperatives and
goals of economic.
By nature and definition, the entrepreneurs are job creators,
as opposed to job seekers. For an example, when one become an entrepreneur,
there is one less job seeker in the economy and then one can provide employment
for multiple other job seekers. This kind of job creation by new and existing
businesses is again is one of the basic goals of economic development. They generate
a lot of job opportunities and helps in expanding or increase the standards to
an international level.
Entrepreneurs helps in increasing the standard of living of public
in a country is yet another key goal of economic development. They don’t only promote
job opportunities, but also by develop and adopt innovations that lead to
improvements in the quality of life of their employees, customers, and other
stakeholders in the country. As an example, automation that reduces production
costs and enables faster production will make a business unit more productive,
while also providing its customers with the same products at lower prices.
Community development requires infrastructure for healthcare
and education, training and other public services. For example, you need
educated and skilled workers in a community to attract new businesses. If there
are educational institutions, technical training schools and internship
opportunities, that will help build the pool of educated and skilled workers.
setting up new businesses and industrial units help with regional development
by locating in less developed and backward areas. The growth of industries and
business in these areas leads to infrastructure improvements like better roads
and rail track, airports, stable electricity and water supply, schools, healthcare
centres, shopping complex and other public and private services that would not
otherwise be accessible.
also promote social change. Through their uniqueness offerings of new product
and services, entrepreneurs break away from tradition and indirectly support
freedom by reducing dependence on obsolete systems and technologies. For
example, the water supply in a water-scarce region will, at times force public
to stop working to collect water. This will affect their business, productivity
business that locates in a less developed area will generate both direct and
indirect jobs, helping lift regional economies in many various ways. The
combined spending by all the fresh employees of the new businesses and the
supporting jobs in other businesses adds to the both local and regional
economic achievement. Any developing business
will eventually want to get started with exports to expand their business to other
foreign markets. This is an significant ingredient of economic development
since it provides access to bigger trading, and leads to currency inflows and
access to the new cutting-edge technologies and processes being used in more
developed foreign markets.
Another benefit is that this expansion that leads to
more stable business revenue during economic downturns in the local economy.
In addition, entrepreneurs also add to national income. It can generate fresh
wealth. New and improved offerings, products or technologies from entrepreneurs
enable new markets to be developed and new wealth created. For example, more
business operates in a country more tax will be received, therefore the income
of the nation will increase.
The ability to turn ideas into fresh products and
services that public need is the fount of prosperity for any developing
country. Economic growth, generally speaking, is driven by new technologies and
their creativity applications. Duration of rapid innovation historically have
been accompanied by duration of strong economic growth. The impetus of
innovation is the best natural resource of all, such as the human mind.
Creating innovative products and solutions requires an educated population and
an environment where collaborative work can take place. In order to being best
for business, education increases workforce creativity and quality of life.
breaking offerings by entrepreneurs, in the form of new product & services,
result in fresh employment, which can produce a cascading effect or virtuous
circle in the economy. For example, a few IT companies founded the Indian IT
industry in the 1990s as a backend programmer’s hub. Soon the industry gathered
pace in its own programmer’s domain.
In addition, technology has made it possible for small
businesses to expand into local and international markets. When new businesses export product and services to
nearby regions, these enterprises contribute directly to a region’s
productivity and earnings. This increase in revenue stabilise an economy and
promotes the overall welfare of a population. Economies that trade with one
another are almost often better off. This has never been more true than it is
today, as we live in an increasingly interconnected global economy. Even for a
large and advanced economy like the United States, foreign markets have a
significant role. Foreign trade, according to some estimates, is responsible
for over 91% of the economic growth.
Entrepreneurs makes much contribution to the national
exchequer and to the country’s economy as whole. The GNP of the country is computed
based upon the sum of products and services available in a respective country.
The more products and services available the higher the GNP. It indicates the
economic growth of the country.