Relationship Between Entrepreneurship And Economic Development
Last time we looked at the “8 UN Millennium Development Goals (MDG’s) For Entrepreneurs” so today’s we’ll pick it up from there and look at the relationship between entrepreneurship and economic development so as to better understand the role that entrepreneurs play in furthering the economic agendas of their respective nations.
Relationship Between Entrepreneurship And Economic Development #1: Creation Of Job Opportunities
As we saw earlier on in our post on the Importance Of Entrepreneurship To The Economy, it’s an entrepreneur’s job to create jobs and the governments jobs to ensure there’s a hospitable environment under which entrepreneurs can conduct their businesses. Creating jobs is one of the most important roles of entrepreneurship and it in the end leads to further development of the economy and this is due to the fact that the creation of jobs means there are companies/industries that are being set up which means governments have access to more money (taxes) to inject into their economies.
Relationship Between Entrepreneurship And Economic Development #2: Promotion Of Creativity And Innovation
Entrepreneurship by nature requires entrepreneurs to be creative i.e. think out of the box, if they are to set up profitable businesses and this in a way promotes the spirit of ingenuity and creativity. You can’t go around copy pasting business concepts and models and
expect customers to be amazed; you have to make a lasting impression in your customer’s mind and this is only by being unique.
Relationship Between Entrepreneurship And Economic Development #3: Creation Of A Ready Market
The by-products of entrepreneurship are products and/or services and people are always willing to spend top dollar on them so long as they offer quality services. This therefore means that so long as a product or service is meeting a particular want in the market, then it’ll always have a demand for it.
Relationship Between Entrepreneurship And Economic Development #4: Utilization Of Local Resources
In order to come up with the by-products of entrepreneurship i.e. a product and/or services, entrepreneurs need to use the available local resources. This means that resources get to be properly utilized instead of lying around idle e.g. using water to produce electricity i.e. hydroelectricity.
Relationship Between Entrepreneurship And Economic Development #5: Enhancement Of Capital Creation
In order to set up businesses, entrepreneurs need to raise capital and as such, the approach financial institutions or investors who are ready to finance their ideas and this process in the end leads to the creation of capital. As far as I know, no one (not even a bank) would pass up on the opportunity to have a piece of cake of a viable idea that promises to produce much fruit.
Relationship Between Entrepreneurship And Economic Development #6: Improvement Of Individual Welfare
The Business Dictionary defines welfare as;
Availability of resources and presence of conditions required for reasonably comfortable, healthy, and secure living
Entrepreneurship by nature helps people to improve on the quality of their lives so as to live a life of financial independence if not financial freedom. The fact that entrepreneurship makes people meet all their basic, secondary and tertiary needs means that it contributes in a big big way to the improvement of people’s welfare.
Relationship Between Entrepreneurship And Economic Development #7: Utilization Of The Populous Skills And Talents
The fact that human labour is used when coming up with the by-products of entrepreneurship i.e. products and/or services, means that a population’s skill and talent is put to good use rather than left to wither away. This means that there is proper utilization of skills and talents and whose compensation is a salary or wage.
Last Word On The Relationship Between Entrepreneurship And Economic Development
Entrepreneurs as I’m sure we’re now all aware of are the driving force behind the various global economies and as we’ve seen in the above relationship between entrepreneurship and economic development, entrepreneurs play a very important role in not only economic development but in the general development of their respective countries.
(Relationship Between Entrepreneurship And Economic Development: Image Above Courtesy of Freedigitalphotos.net)
Feel free to share your thoughts on the relationship between entrepreneurship and economic development; I’d certainly love to hear from you!