Economic development has been influenced by many factors as the process by which the nation works to improve the economic, political and social well-being of its people. One of the factors that affect economic development is Entrepreneurship. We will discuss here the Entrepreneurship role in economic development.
Role of Entrepreneurship
The recent role of entrepreneurship in economic development has become a key factor in employment, and innovations have led to enhanced competition in the market which is a major factor in the growth of economies. Entrepreneurship affects the improvement of the economic health of individuals in the world.
Wealth Creation and Sharing
By establishing a business entity, entrepreneurs invest their own resources and attract capital from investors, lenders and the public. This kind of complex capital, which results in the creation and distribution of wealth, is one of the basic economic necessities and objectives.
As an entrepreneur, there is a job seeker and thus provides job opportunities for several other job seekers. This kind of job creation by new and existing companies is once again one of the basic objectives of economic development.
Balanced Regional Development
Entrepreneurs who create new companies and industrial units help regional development by locating them in less developed and underdeveloped areas. The growth of industries and businesses in these areas leads to improvements in infrastructure such as improvement of roads, railways, airports, electricity and water supplies, schools, hospitals, shopping centres and other public and private services that will otherwise be unavailable.
GDP and Per Capita Income
Each new addition to these 36 million units makes use of even more resources like land, labour and capital to develop products and services that add to the national income, national product and per capita income of the country. This growth in GDP and per capita income is again one of the essential goals of economic development.
Standard of Living
Increase in the standard of living of people in a community is yet another key goal of economic development. Entrepreneurs again play a key role in increasing the standard of living in a community. They do this not just by creating jobs, but also by developing and adopting innovations that lead to improvements in the quality of life of their employees, customers, and other stakeholders in the community.
Any growing business will eventually want to get started with exports to expand their business to foreign markets. This is an important ingredient of economic development since it provides access to bigger markets, and leads to currency inflows and access to the latest cutting-edge technologies and processes being used in more developed foreign markets.
Economic development doesn’t always translate into community development. Community development requires infrastructure for education and training, healthcare, and other public services.