Entrepreneurship as the Core Economic Driver

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Entrepreneurship is unquestionably regarded as a tool that propels the economy forward all over the planet. Entrepreneurs with fertile minds discover, analyze, and leverage available resources with the aim of bringing new goods to the public (Lián and Fernandez-Serrano, 2014, p.687). More profoundly, entrepreneurship and creativity are intertwined and affect other movements that promote economic development. The idea that entrepreneurs are post-graduate students is a delusion that has persisted and consumed the minds of many people who are unaware that true entrepreneurs are our immediate neighbors, mothers, with a deep spirit and a clear drive for achievement. In most cases, the motivation behind entrepreneur innovations is the urge to change the way people live and work, raising the standard of living as well as create wealth. The paper set identifies and elucidates why the notion that entrepreneurs steer the growth of the economy has been profound in the world today.

Entrepreneurs Creativity and Innovation Nature

Entrepreneurs are the most creative and innovative people around. The creative business-starters also called the opportunity entrepreneurs identify a gap in the economy and then take a risk by developing strategies to balance the idea development process, speed up the exploitation and the knowledge generation (Audretsch and Link, 2012). Due to the entrepreneurial spirit in the current world, there is ever-growing innovation incubation platform where private and public organization comes together to develop ideas and help young people in creating new businesses.

The new businesses set up to provide and respond to the unmet people demands and needs of the community. Also, entrepreneurs can entail developing new ideas from the existing companies and produce a new output and better solutions. The advancement of the current approaches typically involves integrating the concept with the latest technology which contributes to the economic growth by guaranteeing higher production. Innovation also enhances the level of competition among business/companies which intern ascertain to the increase in the quality of good and services offered.

In the industrial sector, entrepreneur’s innovation helps in the introduction of new machinery and systems that facilitate the production process and thus quantity and quality output. The rise in the production implies that there will be enough products to meet the demand in the market and hence more income to the company and the government. The innovation such the introduction of television and more powerful mobile devices have incredibly turned the world economies around. People have moved sending from Post Office Mail to Electronic mails facilitating the way of doing business as well as a transfer of information across the world (Boons, Montalvo, Quistand Wagner, 2013). Television, for example, promotes the broadcasting of products ads to millions of people at a glance, creating awareness, more prospective customer and hence more sales.

Job Creation

Governments across the globe are always under pressure to reduce the fiscal expenditure and lessen the rate of unemployment. Countries are beginning to explore on entrepreneurial ingenuities as a means to spur economic growth as well as assist in job creation.

Research has affirmed that entrepreneurship is a vital generator of jobs. While entrepreneurs strive to create new ventures invariably, short terms or long term more exciting job with fewer requirements becomes available (Haltiwanger, 2012, p.21). Evidence from America and Europe indicates that new business start-ups lead to the collapse of inefficient companies. The loss of job from falling companies is offset by the provision of more job opportunity in the new company which has better terms of employment. The rise in the level of income consequently escalates the purchasing power of individuals based on the Keynesian theory which states that expenditure escalates with the increase in the level of individual’s income (Ackermann, 2012).

Most nations consider small and medium businesses as the backbone of the national economy. As a result of advance entrepreneurial spirit, industries have set up and now producing better and reliable products. The rise in the number of businesses has to lead to improved industrialization in the countries which points to the increase in the job opportunities and also parallel economic growth. Moreover, the newly established businesses and industry also support and contributes indirectly to the rise in the rate of employment. That is, as the production of goods increases, the logistics company requires adding more transit vehicles and hire more employees.

Entrepreneurs Contribute to the National Income

Entrepreneurial innovations are core in the generation of new wealth. As stated earlier, the main reason people venture into business is to generate wealth. Whenever a sale of the creative and unique product in the market is made, the investor creates revenue which is later used to improve the business performance and pay for the operating expenses. Some innovation such as finance and credit ventures ensures enhances the circulation of cash in the economy while still affirming continued growth of small and medium businesses which are the primary drivers of the growth of the economy.

The most economy relies on entrepreneurship which is a determinant of the per capita income (Wiseman and Young, 2013). Entrepreneurs pay a large sum of cash to the employees who pay taxes to the government while still engaging in other activities such as clothing, restaurants, and stores that bring in income. Additionally, lots of entrepreneurs who venture into international business fetch in a lot of export revenues which is used in the development of infrastructure and the social amenities. Introduction of a new product by the entrepreneurs contributes to the country’s global recognition which intern attracts more investment and fetching in more revenue for the government.

Regional Economic Integration and Productivity

The entrepreneur's aptitude to transform ideas into new or improved products that are relevant to the market is the fountain of prosperity to any country. The use of the advanced technology in doing business has contributed and made it conceivable for entrepreneur-led invention speed into other regions and access the global market (Kelley, Singer and Herrington 2012). As the new ventures export products across continents, increased productivity and income becomes optimal. The upsurge in revenue promotes and strengthens the local’s welfare such as improved infrastructure as well as aiding in the provision of finances used in the importation of goods that are not produced locally.

The competitive entrepreneurship aspect is a contributing factor to the rise in the productivity and improved quality of goods. As the new business strive to gain clients, the current company/business attempt to retain the customers. The fear of losing business from the upcoming startups even in the United States is rampant as the foreign market plays a significant role to the local as elucidates earlier hence every company works toward attaining the competitive advantage against the business competitor, therefore, leading to the improved productivity (Caliendo and Rossi-Hansberg, 2012).

Most countries rely on the worth of its goods and services in the regional/ international market. If the values go down, the economic position declines. Countries such as Saudi Arabia economy is growing courtesy of the competitiveness of their exported products. In the states where entrepreneurial activities are ever increasing, the new and improved product rise each dawn making the nation gains a global position which intern guarantees a constant flow of income which helps in the economic growth.

Address to Health and Environmental Challenges

It's as a result of entrepreneurship that people who are disabled can move to and from their works place. Innovative businesses, especially in the medical fields, entail the identification of the best preventive and treatment approaches based on symptoms. The initiative by the pharmaceutical entrepreneur has made a tremendous improvement over the last couple of years. New products that facilitate the healing process such as the alginates (Would healing) help the patient recover faster and move back to their dairy economic activity.

Entrepreneurs in health care are now taking a new dimension, new and improved scanning, dialysis and testing equipment are currently available and changing the lives of the people (Wilson, Whitaker and Whitford, 2012). Diseases can be detected earlier enough, and the progress prevented, therefore, saving lives. Economically, the government expenditure on comprehensive health care has reduced as the society comprises of healthy and economically active citizens. Similarly, use of electronic infrastructure in the healthcare facilities has cut the cost of treatment and the time taken to deliver care and hence improved efficiency.

New investors have also addressed the environmental challenges to try and combat the climate changes, lower the global emission of greenhouse gas and preserve the biodiversity (Writer, 2016). Today, agricultural technologies are available and already in use. Entrepreneurs have come up with various way to convert a less productive land to an empire. New irrigation methods, use of greenhouses are now being practiced across the globe solving the problem of food sustainability. Similarly, fruits and vegetable are grown under artificial agricultural innovation are exported fetching in foreign exchange which is used to increase the economic position of a country.

Giving Back to the Community

Giving back to the community entails backing financial, social or emotional support to the wellbeing of the society. Whenever entrepreneurs thrive, most of them engage in the charitable contribution that plans to provide improved healthcare, improve the livelihood of the poor by building home and taking the kids to school. A good example is the Facebook founder and CEO Mark Zuckerberg who gave 99% of his Facebook share worth million dollars in 2015 as an initiative to he help the poor, treat diseases and provided education to the poor (Carson, 2015). The action by the entrepreneurs helps drive the country forward and spur economic growth as the basic needs of the society is available.

Conclusion

Entrepreneurship is an essential component in any given economy as the progress sorely depends on its contribution. It is as a result of entrepreneurs that people earn from employment; access improved medical services and adequate food supply throughout the year. The government is also a beneficially as more income is generated from the sale of good and services Better and enhanced international relation which steers integrated development and business partnership is established as the entrepreneurs sell products across borders. Consequently, every member of the community ought to take the initiative and come up with an innovative idea that will bring in a new or improved product and drive the economy forward.

Bibliography

Ackermann, S.J. ed., 2012. Are small firms important? Their role and impact. Springer Science & Business Media.

Audretsch, D.B. and Link, A.N., 2012. Entrepreneurship and innovation: public policy frameworks. The Journal of Technology Transfer, 37(1), pp.1-17.

Boons, F., Montalvo, C., Quist, J. and Wagner, M., 2013. Sustainable innovation, business models, and economic performance: an overview. Journal of Cleaner Production, 45, pp.1-8.

Caliendo, L. and Rossi-Hansberg, E., 2012. The impact of trade on organization and productivity. The quarterly journal of economics, 127(3), pp.1393-1467.

Carson, B. (2015). Mark Zuckerberg says he's giving away 99% of his Facebook shares — worth $45 billion today. [online] Business Insider. Available at: http://www.businessinsider.com/mark-zuckerberg-giving-away-99-of-his-facebook-shares-2015-12?IR=T [Accessed 20 Dec. 2017].

Haltiwanger, J., 2012. Job creation and firm dynamics in the United States. Innovation policy and the economy, 12(1), pp.17-38.

Kelley, D.J., Singer, S., and Herrington, M., 2012. The global entrepreneurship monitor. 2011 Global Report, GEM 2011.

Liñán, F. and Fernandez-Serrano, J., 2014. National culture, entrepreneurship and economic development: different patterns across the European Union. Small Business Economics, 42(4), pp.685-701.

Walther, O., 2012. Traders, agricultural entrepreneurs and the development of cross-border regions in West Africa. Entrepreneurship & Regional Development, 24(3-4), pp.123-141.

Wilson, A., Whitaker, N., and Whitford, D., 2012. Rising to the challenge of health care reform with entrepreneurial and intrapreneurial nursing initiatives. Online Journal of Issues in Nursing, 17(2).

Wiseman, T. and Young, A.T., 2013. Economic freedom, entrepreneurship, & income levels: some US state-level empirics. American Journal of Entrepreneurship, 6(1).

Writer, E. (2016). 7 Ways Entrepreneurs Drive Economic Development. [online] Entrepreneur. Available at: https://www.entrepreneur.com/article/283616 [Accessed 20 Dec. 2017].

November 23, 2022
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