The importance of entrepreneurship for a country’s economic growth.
Entrepreneurship can impact the economy of a country in diverse ways. It is through entrepreneurship that important innovations enter the market leading to new products or production process which eventually increases efficiency through bringing competition in the market.
Various factors have deterred emerging entrepreneurs from successfully starting their own business. Among the numerous factors cited by some failed startups include, high and multiple taxes, lack of funding, electricity and security.
How does entrepreneurship stimulate the economy?
Investment — Then entrepreneur has to invest in what is required for the economy. Economic progress will much depend upon his or her contributions. Any entrepreneur will invest in products and services which the people need. His or investment will ensure a better life for the people. More goods and services will be at their disposal.
Employment — An entrepreneur by setting up various businesses and establishments is generating employment in the economy. People need jobs. This is a major contribution that an employer can make to provide income to an employee who can meet his or her needs.
Diversity in products and services — An entrepreneur can provide various types of goods and services to the consumer. The latter has much to choose from. A consumer after all would like to have a good bargain, and if his or her choices are more than he or she can get these products or services at reasonable rates. Also personal desires are met if there are products and services to choose from. A person may like a particular type of tie and he can perhaps locate it in his local market. His desire to purchase a tie of his choice is thus met.
International trade — An entrepreneur promotes international trade by selling his or her products abroad. Any entrepreneur would like a wider market. If there are more consumers to purchase his or her products, the higher his profits.
Contributes to gross national product — An entrepreneur makes much contribution to the national exchequer and to the national economy as whole. The GNP of the country is calculated based upon the total number of products and services available in a respective country. The more products and services available the higher the GNP. It indicates the economic prosperity of the country.
Click here to read more books: https://www.amazon.com/-/e/B07QZLVCZJ