The word “Entrepreneurs” originally comes from French. An entrepreneur means a person who undertakes or manages an organization. Entrepreneurship means the process of starting and running a new business. It is defined as the “capacity and willingness to develop, organize and manage a business venture along with Risk and Profit”.
Do entrepreneurs only generate profit and jobs? Or do they serve any other function as well? Yes, they help to contribute to the country’s economy in many ways. Now India experiencing its startup boom, the economy has also been on a sharp rise.
Contribution of Entrepreneurs to Developing and Growing the Economy.
1. Investing in Products and Services People need.
Entrepreneurs create new businesses in response to meet the needs and demands in the market. They have an opportunity to provide a product or service that does not exist or is otherwise available. So that’s why “The Opportunity Entrepreneurs”, who launch new enterprises in response to market needs, are the “Key Players” when it comes to raising economic growth in a region.
They provide access to goods and services that populations require in order to be productive. Therefore they contribute to the development of new jobs in the market as well as the growth of the economy of that region.
2. National Income Increases.
Entrepreneurs directly add their profits to the GDP of the country. They create local jobs and increase the influx of wealth that flows into the system. We all know that a startup plan needs investment that puts people’s idle savings into use. Then the capital is then put that into use in a creative way which means productive utilization of national resources.
If GDP is growing on the rise due to Entrepreneurs then we can say that it is adding value to National Income.
3. Commerce and Regional Economic Integration
Today technology has made it possible for small, entrepreneur-led businesses to expand into regional as well as global markets. When new businesses export goods and services to nearby regions, then they directly contribute to a region’s productivity and earnings.
Economics that trade with one another is almost always better off for each other in the market. Engaging in regional and international trade promotes investment in regional transportation and infrastructure, while also strengthening economics.
4. Reduces Unemployment
In India, unemployment is a serious issue. And it is going on rais due to population of India. Now there is only one way to tackle that: create jobs. Entrepreneurs do exactly that with market needs. They create jobs almost in every domain and help in an overall uptrend in the economic growth of the country.
Many start-ups also employ fresh talent reducing job hassles for graduates. The internship programs nurture skills and make better professional over time. If productivity increases, so do the GDP.
5. Social Change
A lot of startups in India work on social grounds along with think tanks and governmental agencies. This includes issues from education to safety. Entrepreneurs ensure that they not only work for this generation but for future generations. This leads to the strengthening of the economy and a lot of social changes that need immediate attention. Few of them aim at primary education in villages while others aim at the distribution of free menstrual pads.
6. Innovation happens if there is competition.
For the current situation in India, there is a positive feedback loop between innovation, entrepreneurship, and economic development. However, it’s important to understand that entrepreneurship and innovation are dependent on access and participation.
New startups and growing businesses represent the principal source of job creation and innovation activity in an economy, which are the factors that generally result in the rising standards of living for all.
Entrepreneurs have incredible power, that helps regional areas prosper economically. Entrepreneurs also serve society as they help engineer innovative solutions to problems and challenges.