Dorian Koci, Negosentro | Before hopping into the topic, let us first decipher the proper meaning of “entrepreneur”. An entrepreneur is a person who readily takes the risk of venturing a small business all by himself. Being an entrepreneur is not an easy task. It means a lot of hard work and dedication. A successful entrepreneur is also a constant learner. To understand more entrepreneurship and business you can start by reading business essay examples. They will help you understand the basic and you will have an overview of business plans, risks and benefits and everything else you need to know about it. Entrepreneurs have an impact on the social and fiscal growth of a nation. Now let us dive into seeing what is his role in the economic development of the country.
- Employment opportunities in the region
Entrepreneurs employ people since they do not work for anyone. They are job creators and not job claimants. When entrepreneurs set up more units, they provide large scale opportunities to labourers and unemployed people thus comforting many homes.
- Balanced Regional Development
Entrepreneurs usually set up their firms in economically backward areas which help them in extracting added incentives from the Government. They help in removing economic disparities and bring in more construction of roads and public transport systems thus promoting an all-around regional development.
- Wealth genesis and distribution
Entrepreneurs invest their own wealth in generating income and thereby attract capital from investors and money lenders. If their business turns out to be a hit, they cultivate lots of wealth and their success leads to an overall amass of public wealth. This, in turn, leads to the development of traders, who are actually behind the scenes providing cash credit, secured and unsecured loans, overdrafts etc.
- Increases the Gross National Product and Per Capita Income
An entrepreneur knows how to make money out of trash, he utilizes each and every resource to its maximum to exploit its content. He makes utmost use of land and labour to develop efficient products to meet the client requirements which in turn boosts the national income and per capita income of the country. Since they help in patronizing weaker sections of the society, they facilitate the development of backward areas and thus add to the per capita income.
- Enhance the standard of living of people
The economic and financial status quo of a nation can be manifested by the way their population thrives. If the people are not well enough, the country gets the tag of a backward nation, if people are well off, they get the tag of a developed one. Entrepreneurs not only dispense jobs, they also adopt certain developments and innovations to add quality to the lives of their employees and customers. This is how the standard of living goes high.
- Export of goods to foreign markets
If a business is well versed and attains structural growth in the home country, it is not way behind to lag in exporting its services to foreign nations. This, in turn, helps in cash inflows, bigger markets, large exposure, name and fame and more clients. They gradually try to give their best shot by adopting certain foreign automated technologies to give their products a decent touch in the long run. This, in turn, leads to the growth of infrastructure and skilled trainers to educate the youth which in turn boosts overall economy of the country by creating more employment opportunities.
- Meeting the consumer demands
Now with the rapidly budding population in all countries, there has been a huge demand for many products. Sometimes, the existing markets are not able to meet the demands when supply is less than the consumption rate. In such a case, the sprouting up of new business firms has helped in securing the markets by providing ample supplies thus meeting the consumer requirements without creating a shortage of goods. Also, the consumers are granted to feed on a variety of goods before buying, so that they exactly buy the things that meet their requirements.
- Reduces the concentration of economic power
Due to the advancements in big industries, industrial development has led to the concentration of economic power and wealth in the hands of monopolies which leads to an imbalance in the economic growth. Thus entrepreneurs should be groomed so as to stop this concentration of economy.