by Najm Mohamed, Digital Marketing Intern
Entrepreneurship can be considered a national asset, and entrepreneurs are the drivers of that asset for any country. It is a dynamic process that not only increases wealth and but can also create value that results in improved well-being.
Entrepreneurship plays an important role in changing society, so it makes sense to cultivate, motivate, and remunerate this greatest asset to the greatest extent possible.
Importance of Entrepreneurship
In entrepreneurship, unutilized resources, labor, and capital are utilized most efficiently. Entrepreneurs take on risks in the hopes of making profit, or in the case of social entrepreneurship, of solving a problem facing communities. So the significance of entrepreneurs and the role of entrepreneurship go beyond the business world. The importance of entrepreneurship is so broad that it’s quite tough to explain all the aspects of it in a short blog post. However, I would like to shed some light on the importance and role of entrepreneurship in economic development and society.
1. Entrepreneurship Accelerates Economic Growth
Entrepreneurs are important to market economies because they can act as the wheels of the economic growth of the country.
By creating new products and services, they stimulate new employment, which ultimately results in the acceleration of economic development. So public policy that encourages and supports entrepreneurship should be considered important for economic growth.
A large number of new jobs and opportunities are created by entrepreneurship. Entrepreneurship creates a huge amount of entry-level jobs that are very much important to turn unskilled jobholders into skilled ones. It also prepares and provides experienced workers to large industries. The increase in the total employment of a country largely depends on the rise of entrepreneurship. So the role of entrepreneurship in creating new job opportunities is huge.
By bringing innovation to every aspect of businesses, entrepreneurial ventures enhance production utilizing the existing resources in the most effective ways. Entrepreneurs develop new markets by introducing new and improved products, services, and technology. Thus, they help generate new wealth and add more to the national income. So the government can offer the citizens more national benefits.
2. Entrepreneurship Promotes Innovation
Through the right practices of research and development, entrepreneurs bring new innovation that opens the door of new ventures, markets, products, and technology. Entrepreneurs have a role to play in solving problems that existing products and technology have not yet solved. So by producing new products and services or bringing innovation to existing products and services, entrepreneurship has the potential to improve peoples’ lives.
3. Entrepreneurship Can Promote Social Changes
Entrepreneurs change or break the tradition or cultures of society and reduce the dependency on obsolete methods, systems, and technologies. Basically, entrepreneurs are the pioneer of bringing new technologies and systems that ultimately bring changes to society. These changes are associated with improved lifestyle, generous thinking, better morale, and higher economic choice. In this way, social changes gradually impact national and global changes. So the importance of social entrepreneurship must be appreciated.
At Duke, the Innovation and Entrepreneurship Initiative has a special program aimed specifically at Social Innovation. The program is “building upon and extending the strengths of the university to create a transformational learning environment to inspire, prepare, and support entrepreneurial leaders and scholars to turn knowledge into action in pursuing innovative solutions to the world’s most pressing problems.”
For example, one of the most recent projects of the initiative is the Duke-UNICEF Innovation Accelerator, which is focused on entrepreneurship for menstrual health and hygiene for women and girls in vulnerable communities in three African countries.
4. Entrepreneurship Promotes Research and Industrial Development
Along with producing new business ideas and thinking out of the box, entrepreneurs also promote research and development. They cultivate their ideas, shape them into a new form, and turn them into a successful business endeavor.
Entrepreneurs are a special kind of people, they are always working to discover new ideas and improve existing ones. But their impact extends beyond their own companies and ventures: when an entrepreneur develops a new product, service, or idea, others often follow (and sometimes even further refine the ideas).
Innovation and industry is accelerated through the combined action of entrepreneurs. They can motivate each other, share ideas and inspiration, and share planning to establish new industries. The change of the existing industrial climate opens the doors for others at the same time. Therefore, we see that the importance of entrepreneurship to the economy is multi-functional.
5. Entrepreneurship Develops and Improves Existing Enterprises
We often think of entrepreneurs as inventing totally new products and ideas, but they also impact existing business. Since entrepreneurs think differently, they can come up with innovative ways to expand and develop the existing enterprises. For example, modernizing production processes, implementing new technology in the overall distribution and marketing processes, and helping the existing enterprises to utilize existing resources in more efficient ways.
To sum up, supporting and promoting entrepreneurship can have a positive impact on the country’s economy and even existing businesses, and social entrepreneurship increases the likelihood of finding innovation solutions to social challenges faced by communities around the world.