The Role of Social Entrepreneurs in The Economic Development of a Country

Entrepreneurs are someone that founds and venture a small business while acknowledging the risks and rewards of it rather than working as an employee. They are commonly seen as an innovator, a source of fresh ideas, goods and services. Entrepreneurs play an important role in an economy. They are gifted with the skills and drives necessary to foresee current and future needs and bring fresh new ideas to market.

So how do entrepreneurs contribute to the economic development of a country? First off, entrepreneurs have to invest in products and services people need. To keep up with the world’s economy they have to invest. They generate new businesses in response to unmet needs and demands in the market. This creates a chance to provide a product or service that is not currently in existence or otherwise available. What an entrepreneur contributes will affect the economic progress. Any entrepreneur will invest in products and services which the people need. Upon his or her investment will in turn ensure a better life for the people. More goods and services will be at their disposal. Every decision a company makes is an investment and leaders can further distinguish these investments into two categories which are asset and business. For example, entrepreneurs can invest in capital which has the ability to increase labor productivity. This in turn provides job opportunity for the people. Superior capital equipment directly makes individuals, businesses and countries more productively efficient. Increased productive efficiency leads to increased standards of living hence serve the purpose of economic growth.

Another way that an entrepreneur could contribute to the economy is by employment. An entrepreneur by setting up various businesses and establishment is generating employment in the economy. To keep surviving, people need to be employed. This is a major contribution that an employer can make to supply income to an employee who can meet his or her needs. For example, new businesses need to hire employees. Entrepreneurs create jobs and these economic opportunities uplift and support communities through increasing the quality of life and overall standard of living.

Besides that, the 21st century provides new technologies which promote efficiency. What people need is the capability to realize ideas into new products and services which is the core of prosperity for any developed country. The creation of new technologies and their creative applications is driven by the determination of economic growth. Periods of rapid innovation historically have been accompanied by periods of strong economic growth. The greatest natural resource of all which is the human mind stimulates innovation. An educated population and an environment where collaborative work can take place are required to create innovative products. In addition to being good for business, education increases workforce creativity and quality of life.

Usually, when an entrepreneur starts to innovate, there is also a competition. In essence, there is a positive feedback loop among innovation, entrepreneurship and economic development. New and growing businesses represent the principal sources of job creation and innovative activity in an economy, two factors that generally result in the rising standards of living for all. However, it is important to understand that entrepreneurship and innovation are dependent on access and participation. For entrepreneurs to bring new ideas to life, they need access to education and a level-playing field on which to compete. Therefore, the role of government leaders and public policy is to create conditions that allow more entrepreneurs to start businesses by implementing policies which nurture that environment so those businesses can grow. Economic growth suffers when entrepreneurial activity is unevenly spread socio-economically, demographically and geographically. Under the right conditions, entrepreneurs have an incredible by helping regional areas to prosper economically and they also serve society as they help engineer innovative solutions to problems and challenges. Innovation is and will continue to be crucial when it comes to addressing the enormous environmental challenges we face today such as combating climate change, lowering global greenhouse gas emissions and preserving biodiversity in the environment.

Without power for extended periods of time, commerce comes to a halt. Without water, we cannot live. Reliable access to these innovations such as irrigation technology, electricity and urban infrastructure increases productivity and enhances economic development.

Therefore, the diverse contribution by entrepreneurs in the development of the economy can encourage the rapid growth of the marketing world that is constantly changing our lives. As a result, entrepreneurs have to play an important role in a market as they are seen as agents of change. While the change is economically based, the implications are far reaching, affecting other aspects of society such as social, cultural and political. That is why the entrepreneur is willing to take the responsibility and taking business risk to create and expand their business in order to explore more opportunities.

Entrepreneurs are seen as beginners and they also assume the role of a manager. Entrepreneurs have to observe the four factors of production which are entrepreneur, land, labor and capital to enhance the development of the economy. They are formed to lead their own business and to cultivate and offer new ideas for economic growth and individually prosper. Moreover, entrepreneurs have to be good in planning and strategically manage to make a decision and always strive to excel in their businesses. Therefore, failure can be avoided which could pose a threat to an entrepreneur.

In a scenario, a social entrepreneur is motivated to improve and transform social, educational, environmental and economic conditions. Social entrepreneurs are for social improvement and not for the sake of money. They present their ideas that are user friendly besides being also ethical which applies innovative solutions to support them in order to expand the large number of people to tackle their ideas. The challenges and success of effective social entrepreneurs include the failure and lack of status acceptance. It is important to drive an emotional desire to the social and economic conditions and not only by the desire for profit. They seek for the best solutions to resolve the problems that they face.