Tuesday 12th October
It almost Global Entrepreneurship Week (8-14 November 2021), so we are celebrating entrepreneurship and how it is important to recognise its contribution to economic development. Entrepreneurs are not only provided with opportunities that benefit themselves, but their work also develops the economy.
1. Entrepreneurs provide job opportunities
One of the main reasons why individuals tend to become entrepreneurs is because they are unable to find suitable jobs. Entrepreneurs create new businesses and in turn create opportunities of employment for people. Many people have been made redundant due to COVID-19, thus starting a business is an opportunity to either work for themselves or they can help support and develop an entrepreneur’s business. Not only are entrepreneurs able to generate an income for themselves but they also employ other individuals in their business operations. Therefore, people who did not have a job before will have a chance to have a career.
2. Entrepreneurs increase competition & boost productivity
Entrepreneurs challenge existing firms to become more competitive as they often enter the market with lower prices and greater product variety. This can cause existing players in the market to re-assess their operations, increase their value, lower costs, and become more efficient.
Increased competition in an economy is advantageous because firms and individuals will source methods to better improve their operations. The new business formation of entrepreneurs with high-growth ambitions and innovation will push established firms to increase their productivity and enhance their performance.
3. Entrepreneurs create new business & new markets
As the trends in the world continue to change, people’s demands will change, giving entrepreneurs an opportunity to start new businesses.
If a marketplace is saturated, this can result in entrepreneurs seeking new markets for their services and products, which can be considered as a positive impact on the economy. Entrepreneurs may even create entirely new industries that become the engines of future growth.
4. Entrepreneurs add national income
The new products or services created by entrepreneurs result in new wealth from the new markets. Additionally, higher earnings due to entrepreneurship can help boost national income. This is in the form of higher government spending and tax revenue, resulting in investment in struggling sectors and human capital.
5. Entrepreneurs introduce innovative technologies
Individuals often resort to entrepreneurship to provide niche solutions or to use their creativity, technological knowledge, or finances to generate their own income. Innovative ideas and inventiveness are foundational driving factors for entrepreneurs which result in great contribution to the economy.
Like some of the legendary names in business, Bill Gates (Microsoft), Larry Ellison (Oracle), Steve Jobs (Apple) and many more, entrepreneurs create innovations. New and improved products enable new markets which often lead to economic growth.
We can help established new businesses across Greater Birmingham to grow. Please contact the GBSLEP Growth Hub and see how we can help you achieve your business ambitions:
Helpline: 0800 032 3488