Entrepreneurship: The way to accelerate an economy
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Entrepreneurship and economy are complementary to each other. Entrepreneurship works as the base of an economy. On the other hand, a well established economy brings positive energies toward entrepreneurship.
Here, I have discussed about the following things;
What is entrepreneurship?
Entrepreneurship means the business initiative taken by an entrepreneur. Entrepreneurship is not a profession. It is an art with a dream of foresight. It requires a person or a group of people with proper vision and dedication. Entrepreneurship always creates value toward an economy.
Read: Entrepreneur and entrepreneurship: 9 Things to ensure before start
What is economy?
Economy represents the overall scenario of a country’s or area’s production capability and consumption affordability of goods and services, state of money supply, and living standard of the people.
Economy has always been an important part of human civilization. From the beginning of human civilization, every nation has been trying to make and keep their economy strong and stable.
Strong economy always acts as a power element for a nation. Historically, a nation with a strong economy always tried to dominate other nations.
So, what makes an economy strong and stable for a nation? The answer could consist of many things. But probably the key factor is entrepreneurship.
How can entrepreneurship accelerate an economy?
In an economy, there is no other alternative of entrepreneurship. Entrepreneurship can accelerate an economy in many different ways. Within all of those, 8 are most impactful and valuable. Those are:
- Self-employment
- Social employment
- Per capita income
- Infrastructural development
- Foreign currency earnings
- Foreign investment
- Growth in GDP
- Government’s revenue
These have been discussed below.
1. Self-employment
Entrepreneurship makes people self-employed. Self-employment is very important for an economy. Self-employed people directly help an economy to accelerate. The more self-employed people are in an economy, the faster it will grow.
Entrepreneurship not only makes an entrepreneur self-employed, it also helps an entrepreneur’s entire family and future generations to become self-employed.
2. Social employment
Every entrepreneurship creates opportunities for its surroundings. It creates employment opportunities for surrounding people. Entrepreneurship helps surrounding people to improve quality of life by getting jobs and other facilities.
A successful entrepreneurship project ensures employment and financial security for a large number of people. It makes many impacts on an economy to accelerate.
3. Per capita income
Income per capita is a key indicator for an economy. It represents the overall living standard of the population. Per capita income depends a lot on entrepreneurship.
If a country has a large number of unemployed people, then it is hard to increase the per capita income for them. But as entrepreneurship creates many employment and income opportunities for people, it helps directly to increase per capita income. Increase of per capita income is a sign of a strong economy.
4. Infrastructural development
Entrepreneurship has a big role in the development of infrastructure. To get the maximum opportunities and benefits from an entrepreneurship project, many other people try to build many things around it. These things help to grow the economy of that area. It forces the government to make infrastructural development of that area.
As a result, many other businesses, projects, and opportunities arise in that area. It accelerates the overall economy of a country.
5. Foreign currency earnings
Foreign currency earnings is a major element of a country’s economy. It is not possible for an economy to develop without earnings of foreign currencies. Entrepreneurship can play a big role in foreign currency earnings.
A successful entrepreneurship project can make their operation global. As a benefit of the global platform, it can earn foreign currencies by exporting goods and services to other countries.
Besides that, successful entrepreneurs can invest in entrepreneurship projects in foreign countries. It can increase the level of foreign currency earnings by a big margin.
6. Foreign investment
Foreign investment is a major element for an economy. The more foreign investment a country gets, the faster its economy will grow. On one hand, foreign investment creates many opportunities for a country and its people, on the other hand, it plays a big role in foreign currency earnings.
Entrepreneurship projects can play a vital role to attract foreign investors to invest in. By showing the potentiality of projects, entrepreneurs can approach, attract, and convince foreign investors to invest in their projects.
7. Growth in GDP
GDP (Gross domestic product) is an indicator of an economy’s overall position. A positive growth rate of GDP represents the development of an economy.
Entrepreneurship has a big impact on the growth of a country’s GDP. Successful entrepreneurship projects increase the volume of finished goods and services in an economy. It also increases the income of people by creating employment and many other opportunities. For this reason, the purchasing power of people increases. As a result of increased purchasing power, the amount of expenses also increases.
Besides these, an entrepreneurship project has many types of investment, expenses, earnings, etc. All of these things make positive impacts for the growth in GDP.
8. Government’s revenue
Government revenue holds a big role in a country’s overall economy. It is important for a government to increase the amount of revenue to run and develop a country properly.
Major portion of the government’s revenue comes from the business sector. So, it is essential for an economy to increase business entities. It is only possible through entrepreneurship.
Besides the business sector, tax on an individual’s income is another main way of earning revenue for a government. Different entrepreneurs come with different types of business projects which creates different types of earning opportunities for people.
As a result, it helps to increase government’s revenue from both business and individual levels which is much needed to accelerate an economy.
Economy is the backbone for a nation or country, and entrepreneurship is the backbone of an economy. In today’s global economy, if a country wants to accelerate their economy, then entrepreneurship is the way to go.
In the above discussed ways, entrepreneurship can develop an economy. A country cannot make their economy strong and stable without business entities and all the business entities come from entrepreneurship.
