What Is The Role Of Entrepreneurship In Economic Development – Entrepreneurship can be considered a national asset, and entrepreneurs are the drivers of this advantage for any country. It is a dynamic process that not only increases wealth but can also create value that results in better well-being.
Entrepreneurship plays an important role in changing society, so it makes sense to nurture, motivate and mine this greatest asset as much as possible.
What Is The Role Of Entrepreneurship In Economic Development
In entrepreneurship, unused resources, labor, and capital are used more efficiently. Entrepreneurs take risks with the hope of making a profit, or in the case of social entrepreneurship, to solve problems facing their communities. So the meaning of entrepreneurs and the role of entrepreneurship goes beyond the business world. The importance of entrepreneurship is so broad that it is difficult to describe all aspects in a short blog post. However, I would like to shed some light on the importance and role of entrepreneurship in economic and community development.
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Entrepreneurs are important in a market economy because they can act as the wheels of national economic growth.
By creating new products and services, they stimulate new jobs, which ultimately results in accelerated economic development. Therefore, public policies that encourage and support entrepreneurship should be considered essential for economic growth.
Entrepreneurship creates a large number of new jobs and opportunities. Entrepreneurship creates a large number of entry-level jobs that are essential for turning unskilled people into skilled jobs. It also prepares and provides workers with experience in key industries. The amount of employment growth of a country depends a lot on the growth of entrepreneurship. So the role of entrepreneurship in creating new job opportunities is great.
By bringing innovation to every aspect of business, entrepreneurial ventures increase production using existing resources in a more efficient manner. Entrepreneurs develop new markets by introducing new products, services and improved technologies. Thus, they help generate new wealth and increase the national income. So the government can offer the people more national benefits.
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Through good research and development practices, entrepreneurs bring new innovations that open doors to new businesses, markets, products and technologies. Entrepreneurs play a role in solving problems that have not yet been solved by existing products and technologies. So by producing new products and services or bringing innovation to existing products and services, Entrepreneurship has the potential to improve people’s lives.
Entrepreneurs change or break the traditions or culture of society and reduce dependence on outdated methods, systems and technology. Basically, entrepreneurs are pioneers in bringing new technologies and systems that ultimately bring change in society. These changes are associated with better lifestyles, generous thinking, better morals, and better economic choices. In this way, social change gradually influences national and global change. So the importance of social entrepreneurship should be appreciated.
At Duke, the Innovation and Entrepreneurship Initiative has a special program dedicated specifically to Social Innovation. The program will “build and extend the university’s strengths to create a transformative learning environment to inspire, prepare, and support entrepreneurial leaders and scholars to turn knowledge into action by pursuing innovative solutions to the world’s most pressing problems.”
For example, one of the initiative’s newest projects is the Duke-UNICEF Innovation Accelerator, which focuses on entrepreneurship for menstrual health and hygiene for women and girls in vulnerable communities in three African countries.
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Along with generating new business ideas and thinking outside the box, entrepreneurs also encourage research and development. They nurture their ideas, shape them into new forms, and turn them into successful business ventures.
Entrepreneurs are a special kind of people, they are always trying to discover new ideas and improve existing ones. But the impact goes beyond their own companies and ventures: when entrepreneurs develop new products, services or ideas, others often follow (and sometimes refine their ideas).
Innovation and industry are accelerated through the collective action of entrepreneurs. They can motivate each other, share ideas and inspiration, and share plans to establish new industries. Changes in the existing industrial climate opened doors for others at the same time. Therefore, we see that the importance of entrepreneurship in the economy is multi-functional.
We often think of entrepreneurs as creating entirely new products and ideas, but they also impact existing businesses. As entrepreneurs think differently, they can come up with innovative ways to expand and develop their existing businesses. For example, modernizing production processes, implementing new technologies in the entire distribution and marketing process, and helping existing enterprises use existing resources in a more efficient way.
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In short, supporting and encouraging entrepreneurship can have a positive impact on national economies as well as existing businesses, and social entrepreneurship increases the possibility of finding innovative solutions to social challenges faced by societies around the world. An entrepreneur is someone who creates a new business, bears most of the risk and enjoys most of the reward. The process of establishing a business is known as entrepreneurship. Entrepreneurs are often seen as innovators, sources of new ideas, goods, services and business/or procedures.
Entrepreneurs play an important role in any economy, using the skills and initiative needed to anticipate needs and bring good new ideas to market. Entrepreneurs who prove successful in taking the risk to create a startup are rewarded with profits, fame and continued growth opportunities. Failed entrepreneurship results in losses and lack of prevalence in the market for those involved.
Entrepreneurship is one of the resources that economists classify as integral to production, the other three being land/natural resources, labor, and capital. An entrepreneur combines these first three to produce goods or provide services. They usually create business plans, hire employees, find resources and financing, and provide leadership and management for the business.
Entrepreneurs often face many obstacles when building their companies. The three most cited as the most difficult are as follows:
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Economists have never had a consistent definition of “entrepreneur” or “entrepreneurship” (the word “entrepreneur” comes from the French verb
, which means “to do”). Although the concept of the entrepreneur existed and was known for centuries, classical and neoclassical economists left the entrepreneur out of their formal models: They assumed that perfect information should be known by fully rational actors, leaving no room for risk-taking or discovery. Only in the middle of the 20th century did economists seriously try to incorporate entrepreneurship into their models.
Three thinkers are central to the entry of entrepreneurs: Joseph Schumpeter, Frank Knight, and Israel Kirzner. Schumpeter suggested that entrepreneurs—not just corporations—are responsible for the creation of new things in search of profit. Knight focuses on entrepreneurs as bearers of uncertainty and believes they are responsible for the risk premium in financial markets. Kirzner considers entrepreneurship as a process that leads to the discovery of opportunities.
Not all entrepreneurs are the same and not all have the same goals. Here are some types of entrepreneurs:
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Builders strive to create scalable businesses in a short period of time. Builders typically spend $5 million in revenue in the first two to four years and continue to build up to $100 million or more. They are looking to build a strong infrastructure by hiring the best talent and finding the best investors. They have a temperamental personality that suits the rapid growth they desire but can make personal and business relationships difficult.
Opportunistic entrepreneurs are optimists who have the ability to take financial opportunities, get in at the right time, stay on board during times of growth, and get out when the business reaches its peak.
This type of entrepreneur cares about the profits and wealth they will build, so they are attracted to ideas where they can create residual income or innovation. Because they are looking for the right opportunity, opportunistic entrepreneurs can be impulsive.
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An innovator is someone who rarely comes up with a great idea or product that no one has thought of before. Think Thomas Edison, Steve Jobs, and Mark Zuckerberg. These people work on what they love and find business opportunities through it.
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Instead of focusing on money, innovators care more about the impact of their products and services on society. These people are not the best at running a business because they are smart people, so they often leave the day-to-day operations to those who are better at it.
These people are analytical and risk averse. They have strong skills in a particular field acquired through education or apprenticeship. An expert entrepreneur will build their business through networking and referrals, resulting in slower growth than a builder entrepreneur.
As there are different types of entrepreneurs, there are also different types of businesses to create. Below are the main different types of entrepreneurship.
Small business entrepreneurship is the idea of opening a business without becoming a large conglomerate or opening many chains. A one-stop restaurant, a one-stop shop, or a grocery store that sells handmade goods would all be examples of small business entrepreneurship.
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These people usually invest
