For economies to develop successfully, entrepreneurship must be at the forefront of plans. The fact that it contributes towards mobilising public wealth as well as creating more avenues for job creation should be a driving force in decision-making processes.
What are some of the roles of entrepreneurship in economic development?
It creates jobs. By facilitating job creation, this results in one less job seeker and eventually reduces the burden on the economy.
It also improves the living standards. It doesn’t only have positive effects on the standard of living through job creation, but also by developing new innovations, making it easier to run the business. If a business can find ways to improve production processes without negatively impacting the physical health of employees, this has positive effects on how people live. If improved production processes also mean that employees can get to spend quality time with their families, then this improves standards of living.
A key factor is the number of exports a country has. This type of stimulation can contribute towards increasing the exports, which leads to further currency inflows. Expansion to foreign markets is imperative for any entrepreneur. Increased exports are vital because they may lead to stability.
It reduces the concentration of economic power by levelling the playing field considerably for citizens. This is one of the most important roles of entrepreneurship in economic development.
It also stimulates distribution of wealth bringing advantages to more people. The establishment and growth of new markets can help grow an economy.
By stimulating innovation, this leads to more opportunities being created.
These types of business owners are future-oriented and optimistic, which means that they may find solutions, which benefits any economic development plan.