The role of entrepreneurship and entrepreneurs in the economic development of any country is unparalleled. Still, nobody talks about its contribution at large, even when it creates businesses, supports the local economy and country’s GDP, and fuels stock markets. Robert Trosten asks Do you also wonder why it is an integral part of economic development? For this, you will need to delve deeper into diverse areas and understand. Here is a quick journey of the same to help you realize why you can also nurture an entrepreneurial dream.
Robert Trosten: The role of entrepreneurship
Business and job market growth
If you look at the studies, you will find that entrepreneurs help create jobs in the market. Some suggest that it accounts for over 1.5 million jobs in America. So, about 64% of the new jobs come from here. You may ask how adding new jobs helps the economy. Well, job growth is one of the signs of economic development. More jobs mean more people have work, and when the employment rate is higher, it impacts GDP positively. Simply speaking, continuous income helps people to improve their lifestyle. Another way of looking at it is by analyzing the cascading effect. When many people earn and save money, they can use their savings to create more business opportunities and employment.
Local business boost
Small businesses would need local companies to help them in various areas of operations. For example, when you start your company, you may need to use digital marketing services to increase its visibility. Or, you may depend on local vendors for raw materials supply. In a way, it paves the way for a collaborative business eco-system that can flourish easily, says Robert Trosten.
Technological and innovative advancement
Entrepreneurs’ problem-solving nature makes them innovative by enabling them to figure out faster means to accomplish their goals. They tend to be some of the brilliant tech minds. For example, you can consider the existence of Amazon, Facebook, and Google. These companies hardly had any presence two decades ago. Today, they provide tools to other businesses for their growth in terms of customer base and money. To be precise, the world as a whole benefit when an entrepreneur starts a journey.
Old and established businesses grow stagnant after a while due to the layers of bureaucracy. They lose focus from innovation and concentrate on the old system. In a way, they undermine their efficiency or fail to tap into it fully. On the other hand, budding companies led by aspiring entrepreneurs believe in agility and adapting. They chase competition through technologically valuable tools that ensure faster and sustainable results. As a consequence, the economy gets a fresh breath of air.
People choose the path of entrepreneurship to make quick money and become a billionaire. They feel it gives them power. However, there are still some individuals who want to drive the economic engine through their contribution. They devote their energy to creating jobs, innovative technological tools, etc. As a true entrepreneur, you have to think of a larger picture to help the country’s economy grow even when there are hardships.