Understanding the relationship
between entrepreneurship and economic growth can greatly help to make policies
and their promotion globally.
Let us look at how entrepreneurship
drives economic development.
CREATION OF JOBS
One of the foremost importance of
entrepreneurship is that it creates jobs and provides employment opportunities
to the people. It significantly reduces the load of unemployed people and helps
the economy of the country to flourish smoothly.
Entrepreneurship deals with the
new startups of small businesses and enterprises that not only provide new jobs
but also strengthen the economic growth of a country.
Statistics all over the world show
that entrepreneurship is the primary provider or creator of jobs for idle
people.
If there is no entrepreneurship
venture in an economy, these unemployed people would surely be a burden on the
economy because they would have no productivity to support or add their
increment in the development of the economy.
POSITIVE IMPACT ON GDP
Entrepreneurship plays a crucial
role in making the economy of a country solid and self-sufficient. It focuses
on fulfilling the demands and needs of the people living in a country.
When there is no sufficient
availability of products to fill the demands, the country depends on imports.
This not only increases the cost of products but also the money transfers from
that country to another which has a significant negative impact on the economy.
Entrepreneurs are the people who
keep an eye on the gaps and unavailability of stuff in their region. So that
they can bridge the gap and have a startup to fill those gaps and
unavailability of the products and services that are needed. Doing so increases
the GDP value of the economy which makes a country prosperous and stable.
The entrepreneurs are innovative
players that make use of almost every entity and extract most of the benefits
out of it. They usually convert useless things into useful products.
EARNING FROM THE FOREIGN EXCHANGE
Entrepreneurship is a very
fascinating exercise and an admirable fashion of earning for the economic
growth of a country. Entrepreneurship encourages innovation and thinking out of
the box.
It leads to the inventions of new
and sustainable products, industries, and new fields. The people involved in
the entrepreneurship venture have very broader limits and a high vision for
working and offering services internationally.
The fascinating products and
services resulting from entrepreneurship fulfill domestic needs and also result
in high demands in the international markets. By conducting international
business it boosts the economy of a country by availing foreign exchange.
So because of this reason,
entrepreneurship is encouraged in countries all over the world. Policies are
being made by governments to enhance and expand it keeping in view the
importance of entrepreneurship for economic growth.
EXPANSION OF TAX NETWORK
When the tax return is high the
economy of the country is said to be stable and strong. Entrepreneurship offers
job opportunities, creates enterprises, and increases per capita income, as a
result, more people come under the tax network.
An increase in tax revenue is one
of the focused importance of entrepreneurship in the national economy.
SALES TAX REVENUE FROM PEOPLE
As an entrepreneurship, ventures
offer jobs and new opportunities to the people of the country. It has a
considerable positive impact on the livelihood of people. It means people will
have more buying power and will spend money to enjoy life and luxuries.
They will spend money on tourism,
clothing, and food commodities more. This results in the circulation of wealth
and the collection of more sales tax which helps the economy to flourish.
COMMERCIAL TAX REVENUE FROM
ENTERPRISES
Entrepreneurship is playing a
role significantly in the development of a country’s economy. In a larger
frame, the importance of entrepreneurship in developing the economy is the
commercial tax revenue. As entrepreneurship gives rise to businesses and
enterprises and they earn a handsome amount of money.
The governments impose large
amounts of taxes on these firms that raise a country’s wealth. The government
will have enough money to spend on people and developmental projects.
DEVELOPMENT OF REGIONS
Entrepreneurship always promoted
a better and convenient life for all in society. It directly benefited and
developed weak regions of society by creating new jobs and introducing new
services.
It is having a benefit in terms
of business plus supplying to society for demands. It focuses on the needs and
better use of resources in areas where the need is most. Many enterprises are
developed in rural areas keeping in mind the employment and development
opportunities of those areas.
Entrepreneurship helps to
distribute and balance development thoroughly to all parts of the country and
boost economic growth in all regions.
ELIMINATION OF POVERTY
One of the best benefits of
entrepreneurship in the economy of the country is the eradication of poverty
from society. People are having more income sources and good living. It
thoroughly distributes the products and services in all regions.
Entrepreneurship produces
businesses and job opportunities directly. It offers services and products in
those areas where they are not present before. The following are the benefits
of entrepreneurship regarding poverty eradication.
Different business flourishes
with the entrepreneurship which creates and generates employment for poor people.
It maximizes opportunities for poor people to make their life better by good
packages and competitive opportunities in employment and business. It provides
attractive and multiple earning sources to individuals through its products and
services.
Entrepreneurship proved to be a
driver of poverty reduction and increased income sources in less developed
areas. People from marginal areas can defeat poverty and be more productive to
the economy and society.
INVESTMENT IN CHARITY PROJECTS
Besides the benefits of job
opportunities related to entrepreneurship, some mega-companies are utilizing
their entrepreneurship venture in the direction of humanity.
There are a bunch of
entrepreneurs who spend a big amount of money on charity works. Many companies
have started their foundations that are operating globally to improve life.
A prominent example is The Bill
and Melinda Gates Foundation. It is one of the world’s largest private
foundations founded by Bill Gates of Microsoft and his wife which have assets
worth USD 46 billion.
This foundation is working
globally in providing health care and education facilities in those regions
where needed.
Entrepreneurs are the people of
goodwill ready to help make the world a better place to live. large enterprises
that earn a big amount of money are involved in many charity and community
projects to promote education, improve health and life.
The Mario Batali Foundation
educates, protects, and feeds children. Mark Zuckerberg, CEO of Facebook
donated USD 100 to Newark public schools in 2010.
There are many more examples of
benefits of entrepreneurship for the economy, Such projects help governments
and the economy a lot in sustaining and improving the standards of living.
IMPROVING THE STANDARD AND
QUALITY OF LIFE
Entrepreneurship has played an
important role in improving the standard of life. It always opposes and faced
the top global challenges with governments.
Entrepreneurship is playing a
significant role in maintaining health qualities in food commodities which is
not possible for poor economies to maintain.
It created fascinating ways
through technology to provide quality and healthy food in all regions of the
world. The government cannot provide it because of large expanses that can
drain out the economy.
There are mega-companies that
supply quality milk, dairy products, processed and raw food products in those
regions of the world where is a scarcity of essential foods or people cannot
have access to quality food or water.
Such a marvelous approach to
nutrition has a dynamic impact on nurturing a healthy and productive society.
PROMOTION OF NEW TECHNOLOGY
Entrepreneurship improved
efficiency of life by providing access to the latest technology and services. The
people are now able to equip and use the latest technology to increase
efficiency and productivity that strengthen economies.
For instance, agriculture
technology can support the economy by an increase in productivity. Similarly,
industries use the latest technology to increase productivity, import, and
exports.
Entrepreneurship provided
opportunities and enabled people to compete with the world in the economic
race. It is the beauty of entrepreneurship that provides services and quality
products keeping in view the needs as well as the economic conditions of the
people.
Companies involved in entrepreneurship have developed variants in products at different levels to provide people technology under the budget.
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