Entrepreneurs invest their own resources and attract fund frominvestors, lenders and the public. This deploy public wealth and allows peopleto obtain advantage from the successful entrepreneurs and expanding theirbusinesses. This kind of pooled fund that results in wealth creation anddistribution is one of the common imperatives and goals of economic.By nature and definition, they are job creators, as opposedto job seekers. For an example, when one become an entrepreneur, there is oneless job seeker in the economy and then one can provide employment for multipleother job seekers.
This kind of job creation by fresh and existing businessesis again is one of the common goals of economic development. They promote a lotof job opportunities and helps in increasing the standards to an internationallevel.Entrepreneurs aids in increasing the standard of living of publicin a country is yet another key goal of economic development. They don’t only promotejob opportunities, but also by develop and adopt innovations that lead to upgradein the quality of life of their employees, customers, and other stakeholders inthe country. As an example, automation that reduces production costs and helpsfasten the production will make a business unit more productive, while alsoproviding its customers with the same products at lower prices.Community development requires infrastructure for hospital andeducation, training and other public services. For example, you need more educatedand skilled workers in a community to attract new businesses. If there are educationalinstitutions, technical training schools and internship opportunities, thatwill aid to build the pool of educated and skilled workers.
Moreover,setting up new businesses and industrial units help with regional developmentby locating in less developed and backward areas. The growth of industries andbusiness in these areas leads to infrastructure upgrades like better roads andrail track, airports, stable electricity and water supply, schools, healthcare centres,shopping complex and other public and private services that would not otherwisebe accessible.Entrepreneursalso promote social change. Through their uniqueness offerings of new productand services, entrepreneurs break away from tradition and indirectly supportfreedom by reducing dependence on obsolete systems and technologies. Forexample, the water supply in a water-scarce region will, at times force publicto stop working to collect water. This will affect their business, productivityand income.Every freshbusiness that locates in a less developed area will generate both direct andindirect jobs, assisting lift regional economies in many various ways.
Thecombined spending by all the fresh employees of the new businesses and thesupporting jobs in other businesses adds to the both local and regionaleconomic achievement. Any developing businesswill eventually want to get started with exports to expand their business to otherforeign markets. This is an significant ingredient of economic developmentsince it provides access to bigger trading, and leads to currency inflows andaccess to the new cutting-edge technologies and processes being used in moredeveloped foreign markets. Another benefit is that this expansion that leads tomore stable business revenue during economic downturns in the local economy.In addition, entrepreneurs also add to national income.
It can generate freshwealth. New and improved offerings, products or technologies from entrepreneursenable new markets to be developed and new wealth created. For example, morebusiness operates in a country more tax will be received, therefore the incomeof the nation will increase.The ability to turn ideas into fresh products andservices that public need is the fount of prosperity for any developingcountry. Economic growth, generally speaking, is driven by new technologies andtheir creativity applications. Duration of rapid innovation historically havebeen accompanied by duration of strong economic growth. The impetus ofinnovation is the best natural resource of all, such as the human mind.
Creating innovative products and solutions requires an educated population andan environment where collaborative work can take place. In order to being bestfor business, education increases workforce creativity and quality of life.Pathbreaking offerings by entrepreneurs, in the form of new product & services,result in fresh employment, which can produce a cascading effect or virtuouscircle in the economy. For example, a few IT companies founded the Indian ITindustry in the 1990s as a backend programmer’s hub. Soon the industry gatheredpace in its own programmer’s domain.In addition, technology has made it possible for smallbusinesses to expand into local and international markets. When new businesses export product and services tonearby regions, these enterprises contribute directly to a region’sproductivity and earnings.
This increase in revenue stabilise an economy andpromotes the overall welfare of a population. Economies that trade with oneanother are almost often better off. This has never been more true than it istoday, as we live in an increasingly interconnected global economy. Even for alarge and advanced economy like the United States, foreign markets have asignificant role. Foreign trade, according to some estimates, is responsiblefor over 91% of the economic growth.
Entrepreneurs makes much contribution to the nationalexchequer and to the country’s economy as whole. The GNP of the country is computedbased upon the sum of products and services available in a respective country.The more products and services available the higher the GNP. It indicates theeconomic growth of the country.