The Hustler's Digest StaffIn the present-day business world, where opportunities abound, it is also brimming with different entrepreneurs. With many businessmen and women embracing entrepreneurship, we’re forced to ponder its true meaning and importance in our society.
Since the rise in entrepreneurship all around the world. It is important for all to understand what it stands for and why it is important for our global economy. Entrepreneurship is the ability, willingness and readiness to develop and create new ideas into reality and generate valuable profits and returns in the process. There is no limit to what an entrepreneur can do because unlike the normal business and entrepreneur risks not only capital but also his or her own intellect and ideas. Being an entrepreneur is much more personal than being a businessman or woman. Creating and developing ideas to make it into reality is what an entrepreneur does.
What is entrepreneurship?
Before stepping into why entrepreneurship is important we must understand what it actually is. Entrepreneurship is when a person invests they’re ideas, intellect and capital into developing and creating something is called being an entrepreneur. Being one is different from being a businessman or woman because of the key difference of what one invests. A business man or woman invests his or her capital or money, whereas an entrepreneur invests his ability to create something from his ideas and then also his money. The concept of entrepreneurship comes from joining vision, innovation, risk taking and organisation.
Vision
This is the main part of any entrepreneurship. Vision of what you want to be or what you want your products to be. How it can change the lives of its users and how your goods or services can bring a change in the world. This vision is the first step of your journey as an entrepreneur.
Innovation
Being innovative and skillful is what will take you a step further in your journey. Having an idea to work on is good but without innovation or a plan on how to skillfully get your product or service to the common man is the real question. An entrepreneur will always have a good plan and will kow how and what to innovate in order to help his idea come to life.
Risk Taking
Risk taking in business is very common and a fact. Also, risk taking in terms of being an entrepreneur is a whole other story. As an entrepreneur you will not only be taking a risk with your money but will also be taking risks in many other factors such as your intellectual property and your ideas to work on.
Organisation
This is also an important concept of entrepreneurship because if you don’t organize your process you will have a very hard time processing the products and even penetrating the target market. There are a lot of strategies to successfully organise your plans and become a successful entrepreneur.
Why is entrepreneurship important?
Entrepreneurship is very important for many reasons. It forces growth and productivity and influences people around it. It also helps shape society with its innovation. With different entrepreneurs coming out with different goods and services it can also change the lifestyle of people and improve their standard of living. Let’s look into the main reasons why entrepreneurship is very important.
It creates new jobs and opportunities
While entrepreneurs take most of the risks and rewards with them they do offer jobs and new sources of income for people in their society. Even a small venture can generate a lot of income and jobs for the local community and increase the overall productivity of the area. It can also create different and efficient opportunities for other businesses and ventures to start operating and generating economic value.
One new entrepreneur can change the whole community from underdeveloped to flourishing just by innovating and risk taking. From buildings to paperclips and logistics these entrepreneurs start turning the wheels of growth in their surrounding communities.
Entrepreneurs add to the national income
Along with creating jobs and opportunities in thorn surrounding they also hugely contribute on a national level in their countries. These ventures generate new wealth whereas existing businesses may be confined to what they already earn and have capped incomes, they would also find it hard to penetrate new markets because of less innovation. Here is where entrepreneurs create new products and technologies to generate new wealth and enable new markets to flourish.
Furthermore the increase in the disposable income and decrease in the unemployment ratio because of these ventures directly contribute to the national income in the form of increase in income taxes. Since there are more people with incomes the government will get more in taxes on incomes.
Entrepreneurs create social change
New entrepreneurs offer new products and technologies which give way into improving the standard of living in most communities. They also drive away the obsolete things and make room for new opportunities. These also pave the way for more advanced society leaving behind traditional practices and taking on new and improved versions of obsolete things.
For example the introduction of smart devices and applications have now made the world a global village and connected people from all around the world. It has also made it possible to work and earn from any corner of the world and has made life easier for so many people. All these technologies have been derived from entrepreneurs who make the effort in making this world a better place.
Community development
Entrepreneurs in the community inspire others who would one day like to be entrepreneurs themselves. People look upto the entrepreneurs who have made their lives easier and more productive, they aspire to be like them. Like minded entrepreneurs develop communities by showing their philanthropic side. By making it easier for people who have ideas like them and giving opportunities to people who might not have them. They also play an important role by teaching young entrepreneurs and by guiding them to make their own advancements.
Some famous entrepreneurs like Bill Gates who finances so many students around the world and entrepreneurs and also spends a lot in the way of philanthropic activities. He spends a fortune on different causes and gives into the betterment and education of society worldwide.
Entrepreneurs improve quality of life worldwide
It is the ripple effect of having entrepreneurs in the society that they will encourage and empower the community to be more like them. In turn the community will itself learn and apply the practices of the entrepreneur and become successful in their endeavours. Entrepreneurs also indulge in their philanthropic activities and give back to society worldwide. They also endorse small entrepreneurs who are only just starting and help them through networks and connections. By doing all this and empowering others like them they improve the whole quality of life worldwide.
Entrepreneurship and society
More than a billion people worldwide live under the poverty line and have just enough to feed themselves for the day. The global epidemic hasn’t helped in the way of economic development. Societies all around the world have been devastated by covid-19 lockdowns and climate changes. In these times the world had to rely on the hope of new innovations and developments to turn the economic wheel.
It is more than just starting a business
Entrepreneurship is more than just starting a business and earning from it. It is much more than that. Anyone can be an entrepreneur and start increasing their standard of living. From an engineer making a new device to a mom working from her kitchen, all of them are entrepreneurs because their endeavours are generating jobs for people who don’t have the means otherwise.
During lockdowns many chefs started home made food delivery service which generated jobs for delivery people who otherwise lost their main income when restaurants closed up. Many other people started their own ventures and helped society grow back up after the devastation covid-19 had on the whole world.
Encourages new level of thinking
It changes the way people think about starting a business. A few decades ago the only people who had money and connections could successfully start a business. Now because of so many entrepreneurship opportunities there are many venture capital companies waiting for people to bring them their ideas to finance. All this has started because of entrepreneurs who are now successful business men and women who want to give back to society.
It encourages young people to think of new things to make life easier or make already available products better in terms of productivity and efficiency. All this has made society a very smart and productive organism.
Supports job creation and creates new sources of income.
As poverty grows it is very hard for entrepreneurship alone to make a difference. Regardless, entrepreneurship provides new jobs as the business grows. Slowly but surely when the business grows it will need more people to enter the workforce and drive it. It also supports vendors, contractors and other businesses who provide logistics, shipping and other services to the entrepreneur.
Entrepreneurship creates new wealth by sharing talents, time and treasures with others in their community. By connecting and making networking possible they achieve collective success and increase their wealth.
Entrepreneurship works best in a community/society
No business venture can work as a stand alone in the world. It needs networking and connections to move forward and be successful. Community and society helps the entrepreneur get these connections and help them with networking. Without the proper support from the society a business cannot take flight. A business needs partnerships, vendor relationships and other business to support them and help them grow in the local market.
It creates more than just income
Entrepreneurship creates more than just income for society. It creates a vision, a vision to be better and bigger. It makes people around the entrepreneur more inspired to do good and empower them to be the best version of themselves they can be. Entrepreneurs give society a sense of hope and encouragement and they show them what they also can achieve with hard work and dignity.
Entrepreneurship and economy
The effect on economic growth of a country because of its entrepreneurship is considerable. Entrepreneurs generate jobs, increase productivity, create new markets, add national income and introduce new technologies.
Generate jobs and employment opportunity
The main reason entrepreneurs become entrepreneurs is because they couldn’t find their place in the existing job market. That is the reason they went out and made themselves a job and became self employed. By doing that they created a number of jobs for people to support them in running their business.
Increase in a country’s employment rate directly impacts the economy because of increased income taxes. The more people have an income the more they will be able to pay in taxes to the government. It will in turn be used for the welfare of the national interests and significantly turn the wheels of the economy.
Increase collective productivity
New methods of leading a company makes present day entrepreneurs different from what older and obsolete leaders were. New and innovative styles of leadership from entrepreneurs bring out the best in people around them. By doing that they also bring out the rate of productivity from the people around them.
In today’s market the businesses have beautiful and scenic offices with food and drinks all over the place to make the employees feel at home while they’re working because it boosts their mental capacity and improves productivity. Many entrepreneurs even have people work from their homes at flexible hours to make employees productivity boost. These are a few of the new age strategies formed by entrepreneurs to boost productivity.
Since more and more businesses will start to opt for these strategies, the collective productivity of the country’s workforce will increase exponentially.
Create new businesses and new markets
Innovating and creating is what entrepreneurs do and by doing just that they make ways into new businesses and markets which were unattainable before. Entrepreneurship is described as “pursuit of opportunity beyond resources controlled” by the Harvard business school graduate Howard Stevenson, in layman’s words it means to think out of the box. When people start to think outside the box is when they start to achieve what was unattainable at first.
This is why entrepreneurs create new businesses and new markets because they think about what is not already there and find a way to get what previously was unavailable. Looking for the gap in the market is what makes entrepreneurs very important for the economy. They may even create new industries and become an even more integral part of the economy.
Add to the national income
The world as we know it is a global village. If an entrepreneur has made a revolutionary product or service, it can penetrate markets even outside the country. An exchange of goods and services beyond the international borders of a country will affect the current account of the economy.
Providing such innovative products and services will directly affect the national income and increase the country’s balance of payments. This in turn will be very good and profitable for the economy in terms of higher government spending and higher tax revenue. That way the government can subsidies struggling businesses for an overall economic growth.
Introduce new technologies
Most entrepreneurs develop new products based on their own difficulties, intellect and knowledge. These innovations can themselves help a lot of people but mostly it is to generate income for its employees and the economy. These driving factors of entrepreneurship is what makes it such a force to be reckoned with. People like Bill Gates, Larry Ellison and Steve Jobs have made the whole world a better place. If not for their entrepreneurship we would have had Microsoft, Oracle or Apple products. Regular innovating and revolutionizing the way people live enables products for new markets and this often leads to economic growth.
Enterpreships is important for students
Like everything taught in schools prepares the students for life after graduating, it is important for students to also be taught about entrepreneurship. Entrepreneurship is more than a subject, it is a mindset. The economic climate of our world is changing drastically and we have to adapt and change our ways to get accustomed to it. Teaching young students about entrepreneurship should be very important and the first thing on any syllabus. Entrepreneurship-focused programs will teach the students to navigate these very uncertain times due to the global epidemic.
How to deal with uncertain future
In the present day economic climate it is very important for us to teach students how to deal with uncertain times. Covid-19 has ravaged our workplaces as we know it and changed the way people work nowadays. We have to teach the students to adapt to changes and make the best out of an unprecedented situation. These skills include problem solving, empathy and learning to accept failure as a process of growth.
How to collaborate and be creative
Standardised testing has become a common practice in all the education systems around the world. These are the qualities which top colleges appreciate and acknowledge. They want students who are creative and work well in teams not only book smart people. In the present day where people come together from all walks of life to work together these are very important skills to have.
Problem identification
Identifying the problem is the first step to creating and innovating a revolutionary product or service. The first step to becoming an entrepreneur is to identify a problem and then work on solving the said problem. Without this skill a student would never be able to look for the gaps in the market and would never be able to seize the opportunity to make this world a better place.
To use curiosity and creativity
We have to teach students how to tap into their own selves and bring out their creativity. To do that we have to let students be curious and make them develop interests and all walks of life. Having curiosity and then implementing their ideas with creativity is what entrepreneurship is all about and it is vital for students to learn about it.
Make the world a better place
Students of today are the leaders of tomorrow. We should make sure they have everything they need in order to make this world a better place by solving problems, meeting need and relieving pain points with the help of their products and services.
With these programs students don’t just learn about how to earn money, they also learn about how to make this world a better place for everyone in it.
