economic-development

How entrepreneurship enhances economic development

Entrepreneurship is the process with which people utilize their creativity and constructive opportunities to come up with new ideas for establishing businesses. Entrepreneurs are the professionals who are instrumental in creating employment opportunities in an economy. There are a number of economies around the world where the gulf between population and employment is getting wider and wider. So these entrepreneurs can provide an effective solution to bridge this ever-widening gap. Entrepreneurship also allows an opportunity to deal with the uncertainties and risks coming into an economy. The management of the workforce and the tapping of human potential are integral components of entrepreneurship. In an economy there is an inherent distinction between self-employment and wage-employment and entrepreneurship represents this occupational choice.

entrepreneurship and economy

Urge to entrepreneurship

The basic drive for a person to become an entrepreneur is the prior calculation of profits and other non-financial gains that are not seen in the case of wage-employment. So if taking a comparative look, there are additional benefits and compensation as well as risks associated with entrepreneurship. The assignment writing help experts in the UK have time again illustrated this topic elaborately.

The employment opportunities created in the market by the entrepreneurship also escalate a good competition in the market. The different players in the market start using advanced technologies to remain efficient and productive because of the competition. Eventually, all of these business activities take an economy on the path of growth and development. It all starts with an idea and all the responsible persons use their innovative approach around this idea. Gradually, the idea and innovation start making profits for the company and hence are beneficial for the economy as well. Entrepreneurship also gives rise to research and development that is one of the main pillars widely used in strengthening an economy.

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How entrepreneurs can promote economic development

economic-development

Investing in goods and services needed by people

Have you ever thought about what motivates a person to enter into a new venture? As per the traditional models, people having an idea of entrepreneurship tend to create new businesses with respect to the unfulfilled demands or needs of people. There is always an opportunity to offer a good or service which is not available in abundance or which does not exist in the market. 

Economists say that these business starters should be considered as “opportunity” entrepreneurs. This is because they are different from the ones who initial business when they have no other work opportunities. These “opportunity” entrepreneurs often launch new companies to target the untouched market needs. They are the key players with respect to nourishing the economic growth of a certain area. In order to be productive, they provide easy access to products and services that a part of the population’s needs. However, the entrepreneurs who come on the ground because they lack other better options can and do contribute to the economic growth of a region equally.

Start-ups provide employment opportunities

Whenever a new business comes into existence it will require manpower. In order to its own requirements, it will generate multiple employment opportunities. Thus, budding businesses create jobs. This, in turn, results in uplifting and aiding the surrounding communities on economic aspects. With more and sometimes better-paying jobs the quality of life and overall lifestyle of related people enhances. Often left untouched this quality of new business ventures is worthy of discussions and appreciation. They help communities on the ground level. 

They integrate regional economics and commerce

Our world is growing rapidly in terms of technology. The technological advancements have made it easy for small entrepreneurship to grow and expand into the regional as well as global markets. When a new venture exports products and services to connected regions, they directly contribute to the earnings and productivity of those regions. They increase revenue and strengthen the economy. Ultimately it gives a boost to the overall welfare of the population. As per business economics experts, economies who trade within their subdivisions have greater chances of growth.

When a business engages in international and regional trade it promotes investment in transportation and infrastructure. This further strengthens the economies. We cannot stress enough on the fact that we are living in an interconnected global economy. And, for every economy be it a trivial one or an advanced one like the US, foreign trade is important. As per some surveys and estimates, foreign trade is responsible for around ninety percent of our economic development.

Innovative technology accelerates efficiency

The ability to transform ideas into actual products and services which people need is a fount of prosperity. A country that aspires to develop on the economic front should focus on this aspect. Economic growth is attracted by new technologies and their effective implementation. It is time-tested that the periods of fast innovation comes along with the periods of high economic development. The impetus of innovation is nothing but the human mind. Creative and innovative products of the biggest natural resources human mind requires education and platform. The blend of education and creativity enhances workforce performance and aids growth.

By highlighting environmental challenges

Innovation is important when it comes to highlighting the huge environmental challenges we are facing today. Be it combating climate change or lowering down the greenhouse gas emission, preserving biodiversity or environment, technological innovation (if used in a sustainable way) can help in bringing positive changes. 

When commerce does not have power for an extended period of time, it comes to a halt. We cannot imagine human life without water. By saying this, we are trying to emphasize the fact that we cannot even survive without nourishing the environment, economic development would be too much to expect in a ruined environment. Thus, when entrepreneurs invest in giving access to innovative technology to the common mass, they add to the welfare which indirectly makes room for economic development too. Reliable access to innovations like electricity, urban infrastructure, irrigation technology, etc. increases productivity. This ultimately boosts growth in economic aspects.

How to grow the idea of entrepreneurship in young minds?

It is imperative that the mainstream career chosen by a big mass of students is leaned towards “jobs”, entrepreneurship may come second to the list of their priority. The reason being the risk involved in doing business, people hesitate to begin their career with it. However, with the right guidance, planning, approach, and confidence, it is not impossible to mark success in the business world. 

To grow the spirit of entrepreneurship in students, schools, colleges, and universities should build confidence in them. Again confidence is something that will develop with the right knowledge. Students who fear notebooks, exams, or assessments would surely demand extra attention to think about being an entrepreneur. Apart from counseling, workshops, and exposure to business activities, they should be made to love their studies too. Now, the question arises on how to help students to study better? Awareness about easy-online study methods, instant assignment help options can be used to make study easier for them.