Entrepreneurs play big role in driving a nation’s economic growth and societal development. They inspire people to dream big and to push the boundary of advancement. They initiate change in the way we work and live for the better. And most importantly, they create jobs and fortune for a nation. They pull the process of economic development through efficient use of resources, manpower, and finance. Their role is significant in all types of economies—undeveloped, developing, and developed.
Let’s take a closer look at how entrepreneurship contributes to a nation’s economic development:
Entrepreneurs are by nature job creators as opposed to job seekers. When a person becomes an entrepreneur, there is one less job seeker in the economy. In addition to that, that person provides employment or multiple other job seekers. The job creation by new and existing businesses is one of the basic goals of economic development.
Encourages Better Standard of Living
Entrepreneurship is a key in raising the standard of living. Entrepreneurs not only provide means for living through employment but they also provide people’s needs and wants. They develop as well as adopt innovations that lead to improvements in the quality of lives. The boom in the high tech electronics, personal shopping experiences, luxury cars and other products which have made our life easier are all a result of this rise in our standard of living, thanks to the innovators and entrepreneurs.
Initiate Chain of Support and Wealth Sharing
While establishing the business entity, entrepreneurs invest their own resources and attract capital from investors, lenders and the public. This mobilizes public wealth and allows people to profit from the success of entrepreneurs and growing businesses. This kind of pooled capital results in wealth creation and distribution.
Enable Balanced Regional Development
Entrepreneur generally looks for places that are cheap to set up business which are usually the least develop region. These new businesses and industrial units help in the development of the regions. This eventually leads to infrastructure improvements including better roads and rail links, airports, stable electricity and water supply, schools, hospitals, shopping malls and other public and private services that would not be available otherwise.
As businesses grow, they eventually want to start exporting to expand their businesses to foreign markets. It is considered an important key factor of economic development since it provides access to bigger markets which ultimately leads to currency inflows and access to cutting-edge technologies and processes being used in more developed foreign markets.
Entrepreneurs not only invest their own capital but it also attracts capital from the market. They make productive use of these savings and mobilize them by turning it into a productive resource. The pooled financial resource or capital is the basis of wealth creation in the economy, thus contributing majorly to the socio-economic development of a country.
Conclusively, entrepreneurs play a very important role in a nation’s development by starting new businesses, creating jobs, and contributing to development in various key areas such as GDP, exports, standard of living, skills development and community development.