The Role of Entrepreneurship in Economic Development of a Country

Introduction

Why is entrepreneurship an important component of economic development? (essay)

Investment the entrepreneurs have to invest in what is required for the economy. Economic progress will much depend on their contributions. Any entrepreneur will invest in products and services which the people need. Their investment will ensure a better life for the people. More goods and services will be at their disposal. According to traditional models, entrepreneurs create new businesses in response to unmet needs and demands in the market. That is, there is an opportunity to provide a product or service that is not currently in existence, or otherwise available. Economists refer to these business-starters as “opportunity” entrepreneurs in order to distinguish these individuals from those who start businesses for lack of better work opportunities. So-called “opportunity” entrepreneurs, who launch new enterprises in response to market needs, are key players when it comes to fostering economic growth in a region.

Providing employment opportunities

An entrepreneurs by setting up various businesses and establishments is generating employment in the economic development of a country. People need jobs. This is a major contribution that an employer can make to provide income to an employee who can meet his or her needs. If there is not enough employment opportunities the Unemployment is the main factor that effects and influences on the economic development of a country where the Unemployment is the phenomenon that occurs when a person who is actively searching for employment is unable to find work the higher the rate of unemployment the slow the economic development of a country and the opposite is true .employment is the major driver is because it have an influence in the spending patterns of the of individuals, industries, and the economy at large. So if the rate of unemployment is high basically what it means is that as individuals we won,t have enough disposable income to spend, industries will also not be able to operate at full capacity as few individuals will consume their products and thereby leading to the reduction in cash inflows, and the economy will then suffer as the rate at which the economy will grow will be generally low.

Commerce and regional economic integration:

Technology has made it possible for small, entrepreneur-led businesses to expand into regional and global markets . When new businesses export goods and services to nearby regions, these enterprises contribute directly to a region’s productivity and earnings. This increase in revenue strengthens an economy and promotes the overall welfare of a population. Economies that trade with one another are almost always better off. Politics aside, engaging in regional and international trade promotes investment in regional transportation and infrastructure, which also strengthens economies

The international trade accounts for a good part of a country's gross domestic product. It is also one of important sources of revenue for a developing the economic development of a county .entrepreneurs promote international trade by selling his or her products abroad. Any entrepreneur would like a wider market. If there are more consumers to purchase his or her products, the higher his profits.

Diversity in products and services

An entrepreneur can provide various types of goods and services to the consumer. The latter has much to choose from. A consumer after all would like to have a good bargain, and if his or her choices are more than he or she can get these products or services at reasonable rates. Also personal desires are met if there are products and services to choose from. A person may like a particular type of tie and he can perhaps locate it in his local market. His desire to purchase a tie of his choice is thus met.

New technologies promote efficiency

The ability to turn ideas into new products and services that people need is the fount of prosperity for any developed country. Economic growth, generally speaking, is driven by new technologies and their creative applications. Periods of rapid innovation historically have been accompanied by periods of strong economic growth. The impetus of innovation is the greatest natural resource of all: the human mind. Creating innovative products and solutions requires an educated population and an environment where collaborative work can take place. In addition to being good for business, education increases workforce creativity and quality of life.

Do the entrepreneurs considered as an agent of change to develop the economic of a country?

Yeas they are because entrepreneurs create the opportunities, good in planning and manage strategically to make a decision and always strive for excellence in a business. Which they must have a good skills and insight to developing its strategic in the business .the rapid growth of the marketing is constantly changing our lives. As a result, entrepreneurs are played the importance role in a market as they are seen as agents of change. Which 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 to order to explore more opportunities. Which the goods and services are fulfills customer's demand and preferences.

Entrepreneurs seen to be the starters and them also assume the role of manager. Which entrepreneurs are observing the fourth factor of production (entrepreneur, land, labor and capital) and improve for the economic development. They were actively form to lead their own business and cultivate and offering new ideas for the economic growth and prosperity in individually. Moreover, entrepreneurs have a good in planning and manage strategically to make a decision and always strive for excellence in a business. Therefore, it can avoid the failure that may threat to an entrepreneur and the lack of continuity of the business and know how to developing the field of social entrepreneurship.

Innovation and its purpose is to replace old products with new, better ones. These innovations are important because they keep the vitality and competitiveness of markets. Most of the changes that one sees in the market are the kind of innovations, but these innovations are inherently substitutional. In selling better products to existing customers, they will not buy the old product anymore. Examples When Samsung company improves model of its leading smartphone, its old-fashioned sales are falling rapidly, and when Toyota persuades its consumers to buy a Toyota Prius, they will not buy a car Camry, so the investment in innovations rarely lead to further net growth within the companies that develop and sell, and rarely lead to the creation of new jobs to support the overall economic growth.

Conclusion

Entrepreneurship has been considered as the engine of economic growth and it has come to be perceived as a catalytic agent for expansion and promotion of productive activities in every sphere of economic life all over the world. Entrepreneurs are nation builders. I therefore urge entrepreneurs to be more creative and move up with trends. Countries must learn to value their entrepreneurs, as real partners of development. We must acknowledge their contributions, and celebrate them. An economy is much dependent upon the performance level of its entrepreneur. He or she plays a vital role in the growth of the national income as well as raising the per capita income of the people.