Entrepreneurship plays a vital role in the economic growth and standard of living in the country. As a start-up founder or small business owner, you may think that you are working hard to build your own business and provide for yourself and your family. But you’re doing an entire heap a lot of for your local people, state, region, and also the country as an entire.
Bringing new competitive dynamics within the national system – Start-Up companies are the foremost dynamic economic organizations on the market since they provide additional dynamics and competitiveness to any national economy. This means that the economy stays healthy, vital and diligent, while individual companies find it harder to fall asleep on their laurels. Start-up entrepreneurship is crucial as a result of it brings innovations, new jobs, and competitive dynamics into the business setting.
Wealth Creation and Sharing: By establishing the business entity, entrepreneurs invest their own resources and attract capital (in the shape of debt, equity, etc.) from investors, lenders and also the public. This mobilizes public wealth and allows people to benefit from the success of entrepreneurs and growing businesses. This kind of pooled capital that leads to wealth creation and distribution is one amongst the fundamental imperatives and goals of economic development.
Create Jobs: Entrepreneurs are by nature and definition job creators, as opposed to job seekers. The simple translation is that once you become an entrepreneur, there’s one less job seeker within the economy, and then you provide employment for multiple other job seekers. This kind of job creation by new and existing businesses is once more is one in all the essential goals of economic development. This is why the Govt. of India has launched initiatives such as StartupIndia to promote and support new start-ups, and also others like the Make in India initiative to attract foreign companies and their FDI into the Indian economy. All this successively creates plenty of job opportunities and helps in augmenting our standards to a worldwide level.
Balanced Regional Development: Entrepreneurs setting up new businesses and industrial units facilitate regional development by locating in less developed and backward areas. The growth of industries and business in these areas ends up in infrastructure enhancement prefer better roads and rail links, airports, stable electricity and installation, schools, hospitals, malls, and different public and private services that will not somewhat be out there. Every new business that locates in an exceedingly less developed space can produce each direct and indirect job, serving to elevate regional economies in many alternative ways. The combined disbursement by all the new workers of the new businesses and therefore the supporting jobs in different businesses adds to the native and regional economic output. Both central and state governments promote this type of regional development by providing registered MSME businesses varied edges and concessions.
GDP and Per Capita Income: India’s MSME sector, comprised of thirty-six million units that give employment for more than eighty million folks, currently accounts for over thirty-seventh of the country’s GDP. Each new addition to those thirty-six million units makes use of even additional resources like land, labour, and capital to develop product and services that augment the national income, national product and per capita financial gain of the country. This growth in GDP and per capita financial gain is once more one among the essential goals of economic development.
The standard of Living: Increase within the standard of living of individuals in a very community is yet one more key goal of economic development. Entrepreneurs play a key role in increasing the quality of living in a society. They do this not simply by providing jobs, however additionally by developing and adopting innovations that result in enhancement within the quality of life of their employees, customers, and other stakeholders in the community. For example, automation that reduces production prices and permits quicker production can build a business unit more productive, whereas additionally providing its customers with a similar good at lower costs.
Exports: Any growing business will eventually want to get started with exports to expand their business to foreign markets. This is a crucial ingredient of economic development since it provides access to larger markets, and leads to currency inflows and access to the latest cutting-edge technologies and processes being used in more developed foreign markets. Another key profit is that this enlargement that ends up in a lot of stable business revenue throughout economic downturns within the native economy.
Community Development: Economic development doesn’t always translate into community development. Community development needs infrastructure for education and coaching, healthcare, and alternative public services. For example, you wish highly educated and skilled workers in a community to draw in new businesses. If there are academic institutions, technical training schools, and internship opportunities, that will facilitate build the pool of educated and skilled employees.
So, there’s a very important role for entrepreneurs to spark economic development by starting new businesses, making jobs, and conducive to improvement in numerous key goals like gross domestic product, exports, the standard of living, skills development and community development.
Disclaimer: The views expressed in the article above are those of the authors’ and do not necessarily represent or reflect the views of this publishing house