Importance of Entrepreneurship.
Entrepreneurs change the way we live and work. If successful, their ideas may change and improve our standard of living. In short, in addition to creating wealth from their entrepreneurial ventures, they also create jobs and the conditions for a developing society.
Entrepreneurs take the economy and society to the state of progress and profitability. Taking this into account we can describe the significance or importance of entrepreneurship in today’s world.
Entrepreneurs Create New Businesses.
Pioneering offerings by entrepreneurs, in the form of new goods and services, resulting in the generation of employment. The stimulation of related businesses or sectors that support the new venture adds to further economic development. Entrepreneurship firms contribute a large share of new jobs. Also, entrepreneurial ventures prepare and supply experienced labor to the large industries.
Entrepreneurship leads to Social Change.
Entrepreneurs break away from tradition and indirectly support freedom by reducing dependence on outdated systems and technologies. Overall, this results in an improved quality of life and economic freedom. They also invest in community projects and provide financial support to local charities. This enables further development beyond their own ventures.
Strengthens the Standard of Living.
Standard of living is a concept built on an increasing amount of consumption of a variety of goods and services over a particular period by a household. So it depends on the availability of diversified products in the market. Entrepreneurship grants a huge variety of products by their innovation. Besides, it increases the income of the people who are employed in entrepreneurial enterprises. In effect, entrepreneurship enhances the standard of living of the people of a country.
Without the creative ideas of entrepreneurs, our world would not be as advanced as it is today in the fields of culture, science, and technology.
M. Kirzner (1973) observes entrepreneurs as; “one who perceives what others have not seen and acts upon that perception”.