Role Of An Entrepreneur In Economic Development – Home — Essay Sample — Economics — Economic Development — The Role of Entrepreneurs in the Economic Development of a Country
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Role Of An Entrepreneur In Economic Development
When discussing the role of business in economic development, this essay recognizes that businessmen play an important role in the development of a country. Their skills, talents and hard work are essential to deliver the essential goods and services that citizens need. By creating new businesses, entrepreneurs not only provide jobs, but also strengthen competition and can increase productivity through technological change. The result is that a lot of standardized entrepreneurial activity results in a lot of economic development in the country. The contribution of entrepreneurs to the business world is very valuable as their products are important for the development of the whole society and people cannot live without them. Entrepreneurs are therefore important for economic growth in the country.
Economic And Social Benefits Of Entrepreneurship
Investment entrepreneurs must invest in things that are needed in the business world. Economic progress will depend greatly on their contribution. All entrepreneurs will invest in products and services that people want. Their investment will ensure a better life for people. Many products and services will be available to them. According to traditional models, entrepreneurs create new businesses in response to unmet needs and demands in the market. That is, there is an opportunity to provide a product or service that does not currently exist, or else. Economists refer to these entrepreneurs as “opportunity” entrepreneurs to distinguish these people from those who start businesses for lack of better job opportunities. Entrepreneurs called “opportunists”, who start new businesses in response to market needs, are key players in boosting economic growth in the region.
An entrepreneur with the establishment of various companies and institutions creates jobs for the economic development of the country. People need jobs. This is a great contribution an employer can make to an employee that can meet their needs. If there are not enough job opportunities Unemployment is the main factor that affects and affects the economic development of a country as unemployment is something that happens when a person who is actively looking for work does not find a job the higher the rate. unemployment slows down the development of the economy in the country and vice versa, employment is the driving force because it affects the spending patterns of people, companies and the economy in general. So if the unemployment rate is basically high, it means that as successful individuals we do not have enough income to spend, the industries will also not be able to work at their full capacity as fewer people will use their products, thus leading to a decrease in cash flow, and the economy will will suffer as economic growth will generally be low. Trade and regional economic integration:
Technology has enabled small businesses led by entrepreneurs to expand into local and international markets. When new businesses move goods and services to surrounding areas, these businesses directly contribute to the area’s productivity and income. This increase in income strengthens the economy and contributes to general well-being. Economies that trade with each other are almost always better. Beyond politics, participation in regional and international trade encourages investment in regional transportation and infrastructure, which also strengthens the economy.
International trade accounts for a good part of a country’s gross domestic product. It is also one of the important sources of income to develop the country’s economic development. Entrepreneurs promote international trade by selling their products to foreign countries. All entrepreneurs want a wider market. The more customers who buy his products, the more profit. Diversity in products and services
Benefits Of Entrepreneurship: Economic Development & Questions
A retailer can offer customers a variety of products and services. The latter is more optional. After all, the customer wants to make a good purchase and if his choice is more than he can get these products or services at a reasonable price. Personal preferences are also catered for when choosing products and services. A person may like a certain type of tie and may find it in their area. His wish to buy a tie of his choice is granted. New technology promotes efficiency
The ability to transform ideas into new products and services that people want is the source of success in any developed country. Economic growth, broadly speaking, is driven by new technologies and their creative uses. Times of rapid change have historically been followed by periods of high economic growth. The impetus for innovation is nature’s greatest resource: the human mind. Creating new products and solutions requires educated people and an environment where collaboration is possible. In addition to business readiness, education increases work skills and quality of life. Are entrepreneurs considered agents of change to develop the country’s economy?
Yes, it is because entrepreneurs create opportunities, they are good at planning and management skills to make decisions, and they strive for excellence in business. That they must have good skills and understanding in developing their business plan. The rapid growth of the market is always changing our life. As a result, entrepreneurs play an important role in the market as they are seen as agents of change. What is a change based on the economy, the effect is far reaching, affecting other aspects of society such as social, cultural and political. Therefore, an entrepreneur is willing to take responsibility and take risks in business to create and expand his business to explore more opportunities. Which products and services meet the customer’s needs and wants.
Entrepreneurs are seen as entrepreneurs and they also take on the role of managers. Which entrepreneurs consider the fourth factor of production (entrepreneur, land, labor and capital) and improve economic development. They were actively leading their company and cultivating and introducing new ideas for economic growth and personal advancement. Moreover, entrepreneurs are good at planning and managing effectively to make decisions and always strive for excellence in business. Therefore, it can prevent failure that can threaten the entrepreneur and the lack of business continuity and know how to develop the economic life of the community.
What Is Entrepreneurship? Detailed Definition And Meaning (2022)
Innovation and its purpose is to replace old products with new and better ones. This change is important because it maintains the strength and competitiveness of the market. Most of the changes people see in the market are in the form of innovations, but these changes replace nature. By selling better products to existing customers, they will no longer buy the old product. Example When the company Samsung reformulates its flagship smartphone, its sales decline rapidly, and when Toyota gets its customers to buy a Toyota Prius, they won’t buy a Camry, so investment in new products rarely results in net sales. growth in development and sales businesses, which rarely lead to new jobs to support overall economic growth. To conclude
Trade is seen as an engine of economic growth and has been recognized as an agent for increasing and enhancing productive activities at all levels of the economy worldwide. Entrepreneurs are nation builders. So I encourage entrepreneurs to be creative and keep up with the trends. Countries must learn to value their entrepreneurs, as real developers. We need to recognize their contributions and celebrate them. An economy is highly dependent on the performance of its entrepreneurs. It plays an important role in the growth of national income and increase in per capita income.
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What Is Social Entrepreneurship? A Guide
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