The importance of entrepreneurship in the economy, society and education cannot be overemphasized. Entrepreneurs are the main engines of growth in any economy. Without entrepreneurs, the government will be poor and infrastructure will be in bad shape. So, you may be wondering if they are so important to the wellbeing of a nation then, you would like to be one. Hence, you may want to find out more about entrepreneurship. Who entrepreneurs are? What role they play in any economy and how they impact society and the educational sector? If that is your aim, this article is for you.
So, do not worry as this post will give you answers to these questions and more. Let us explore this topic by starting with the definition of entrepreneurship.
According to Wikipedia “Entrepreneurship is the process of designing, launching and running a new business, which is often initially a small business. The people who create these businesses are called entrepreneurs’. From this definition, you can see that entrepreneurs are very important in the economy of any nation.
We shall give you explore this article by giving you the importance of entrepreneurship to society, economy, and education. To begin the process, first, let us start by looking at how entrepreneurship affects the Society.
- 1 Importance of Entrepreneurship In Society
- 2 Importance of Entrepreneurship In Economy,
- 2.1 5. The engine of growth in an economy
- 2.2 6. Generation of revenue for the government
- 2.3 7. Creation of Employment
- 2.4 8. Bring fresh ideas into the creation of new enterprises
- 2.5 9. Make members of society self-reliant
- 2.6 10. Giving back to the Society
- 2.7 11. Creates competition in enterprises
- 2.8 12. Giving citizens a higher standard of living and building capacity
- 3 13. Entrepreneurs earn foreign exchange for their nation
- 4 Importance of Entrepreneurship In Education,
- 5 Conclusion
Importance of Entrepreneurship In Society
The importance of entrepreneurship in society are numerous. They include:
1. Innovation in creating products and services
Entrepreneur’s importance in society shows in the area of contributing to innovative solutions in practical ways that affect the people positively. They are innovative and able to create with imagination products and services that are valuable to society. However, these products or services these entrepreneurs make must be cost-effective else no one would buy them.
2. Build local businesses
Another importance of entrepreneurship in society is that they build businesses in their area. They create businesses to serve their locality which makes jobs available for local people. Also, as these employees receive their pay, they make cash to flow within their environment. They also increase the buying of the services or products of other small businesses that were set up to serve in that locality.
In addition, these local Entrepreneurs are also helpful to others who want to set up their own ventures. They guide, mentor and give funds to start-up ventures.
3. Thinking outside the box and showing concern for employees
The importance of entrepreneurship in society is shown by the creativity of entrepreneurs who are able to think outside the box and challenge the status quo. For instance, they are able to do new things that old corporate businesses dare not do. Furthermore, they are small and hope to grow big so, they try to solve problems, in unique cost-effective ways.
Entrepreneurs are more sympathetic to the plight of their workers. They know that these employees are the “goose that lay the golden eggs” in their business. Hence, they pay fair wages and motivate their staff to perform at peak capacity.
4. Equitable Development in the Regions
When you think of equitable development the importance of entrepreneurship in society becomes so clear. Entrepreneurs set up businesses in local areas where there are no developments. This helps to jump-start development in those areas as other business spring up to take advantage of the growth being created.
Also, new roads, electricity, schools, and shops that sell raw materials all spring up. This stimulates growth in that place and builds wealth due to different businesses that are set up there.
Importance of Entrepreneurship In Economy,
In the economy, the importance of entrepreneurship in development is linked to its importance in society. See the reasons below.
5. The engine of growth in an economy
One of the importance of entrepreneurship in society and economy is that entrepreneurs are the engine of growth in an economy. This means that if there are few entrepreneurs, the country will suffer from lack of jobs and there will be poverty in that land.
Without their input, there will be no output in the economy. The areas you feel their presence most is in the generation of revenue and taxes, creation of employment, bringing fresh ideas into the creation of new enterprises and making members of a specific society self-reliant.
Others are, generating competition in enterprises, giving the people higher standards of living, and capacity development of citizens. From this list of factors, you can see the impact of entrepreneurship on the economy.
Let us expand on this thought further.
6. Generation of revenue for the government
Governments in all parts of the world create enabling environment for enterprises to thrive. The Government makes sure there is infrastructure – constant electricity, good roads, security, water and rules that guide the building of enterprises and then tax the citizens to run the government.
So, if there are few profitable enterprises operating in the country, the government will be poor since it can only tax a few companies.
This is a vital importance of entrepreneurship in an economy. Entrepreneurs build or create profitable ventures which pay taxes that generate the bulk of the revenue government uses for maintenance of infrastructure. Another good area to note the importance of entrepreneurship in an economy is in the creation of employment.
7. Creation of Employment
As we explained earlier entrepreneurs build enterprises and run it to serve a purpose in an economy. One of the inputs they need to be able to do this task is human resources. Without the human resources, the production from these entrepreneurs will be nonexistent.
So, to produce or sell their products or services they hire labour to work in these new startup companies. This generation of employment helps to create wealth for the Nation as these employees also pay tax to the government.
8. Bring fresh ideas into the creation of new enterprises
Another good area you would feel the importance of entrepreneurship to individuals, is in the area of generation of ideas for new startup companies. Without these entrepreneurs, you will lack people that serve as role models for young prospective startup companies to copy. The fact is, their existence encourages others to start their own businesses.
9. Make members of society self-reliant
Entrepreneurs create self-reliant members of the society who are able to build their own companies and continue to grow their business. Entrepreneurs help to duplicate themselves as they instil in other citizens the zeal to start a profitable business than get a job from the government.
10. Giving back to the Society
When you think about the importance of entrepreneurship in the economy, what readily comes to mind is that entrepreneurs create fresh businesses by helping aspiring and talented young adults with good business ideas to start their businesses.
They also give technical and financial support to start up new businesses. A clear example in Nigeria is the Tony Elumelu Foundation which supports entrepreneurs with $5,000 startup grant and mentoring to enable them to grow.
11. Creates competition in enterprises
There is competition among these enterprises for customers in the society. So, the consumers or buyers benefit from this. As you know, competition usually drives the price of goods down in any economy. Furthermore, due to many entrepreneurs in a society, the buyer not only has may close substitutes to compare price but is also able to get goods or services at competitive prices.
12. Giving citizens a higher standard of living and building capacity
You cannot overlook the importance of entrepreneurs in an economy. They not only give members of the society jobs which put food on the table, but pay them living wages which gives citizens purchasing power to buy goods and services other companies make in the economy.
In addition, purchasing power raises the standard of living of citizens who are then empowered to go for training in different areas of life to develop themselves and function better at their jobs or vocations.
13. Entrepreneurs earn foreign exchange for their nation
Earning foreign exchange is a clear example of the importance of entrepreneurship in Economy. How is this possible? Entrepreneurs start businesses and as they grow and serve the purposes for which they started the business, they earn income.
For example, if you set up a local Shea butter processing plant and manage your business well, you will soon start exporting your quality product Internationally and start earning foreign currency for your country.
When the entrepreneur earns foreign exchange, it stimulates the economy. How does that happen? Simple! If a country earns more foreign exchange than it uses and has more exporters of finished products, than it imports, this will increase the value of the local currency.
14. Entrepreneurship attracts expert knowledge and causes the transfer of technology
Transfer of Technology and expert knowledge shows the importance of entrepreneurship to an economy. You can start a small business today and it will grow big if you manage it well. As your business grows and reaches its peak, you may need foreign expert knowledge to continue growing.
In this case, you either hire a foreign expert or send some of your staff to undergo special training abroad. Either way, the knowledge this individual (s) bring into the business will improve it.
Also, before the foreign expert leaves your company, he or she will train or transfer knowledge to local staff of your company. For example, let us assume you open a plastic manufacturing company, you would need equipment to start the business.
Assuming you buy equipment from China, you would also need Chinese experts to install the machines and teach your local staff how to use it. In addition, some of your staff will be trained to service and repair these machines.
Furthermore, when these foreigners leave, the local staff will continue to do the repairs and maintenance of the equipment. In this case, technology has been transferred due to local mastery of how to keep it working. Without entrepreneurs, this kind of transfer would be rare.
Importance of Entrepreneurship In Education,
Let us look at the importance of entrepreneurship in education.
As a successful entrepreneur, you can help to spread the importance of entrepreneurship in your locality. You can do this by visiting secondary schools and universities to organize essay competitions on topics such as” the importance of entrepreneurship in the education sector”
You could also give cash prizes for the best essays or give winners scholarship. In addition, the importance of entrepreneurship education is key to the continuous growth of fresh entrepreneurs in any nation. It is from these young students that the crop of fresh entrepreneurs will come from.
However, an effort to train new people starts from the educational institutions which must make sure their curriculum in secondary to tertiary levels of education have entrepreneurial courses.
Finally, to make sure students take this subject seriously, in schools, the Government should introduce essays. There should be essay competitions with reward systems that would make it attractive for all students to compete. Similarly, Students could write essays on the topic “The importance of entrepreneurship”.
16. Availability of study materials
As an experienced entrepreneur, you can make pdf documents to teach young adults the importance of entrepreneurship to economy, society, and education. This will guide young startup companies so that they don’t join the businesses that failed to make it after startup. Go on and write that guide today.
Also, training students in entrepreneurship is a simple way of increasing student’s attendants to school. Why is this possible? It is because every individual no matter how old or small aspire to own their own companies.
Students are no exception to the rule. The school authority should make books that teach entrepreneurship available to students among other resources. For example, you can compile a PDF eBook that shows the importance of entrepreneurship to these students, and ask them to download it for free.
17. Learning about real businesses
Students could interview real-life entrepreneurs so that they know the way businesses operate. Also, the school could compile this information in a database for future references, and to guide discussion sessions in the school.
In addition, you can encourage students to carry out research to identify different businesses that exist in the different economic sectors; identify what these businesses produce or sell, geographic locations and their functions.
18. Brain Storming Ideas
The teacher could challenge students to come up with business ideas and products they think other students could buy. The teacher could organize a debate on a specific product and how to modify it to gain wide acceptance, identify the target market and competition.
The importance of entrepreneurship education becomes apparent when brainstorming ideas, gives these students a real sense of what it means to own a business.
19. Improve the speed of thought
You can make students generate business ideas, create prototype products, find out weaknesses, and strengths of their ideas for making a new product. When they do this, they will learn how to use the ideas that they learn about in entrepreneurship education, and also have an entrepreneurship mindset.
20. Improve imagination skills
You can make students imagine products and how to develop new ones that can solve real problems using their natural-born ability. This will give them the capacity to see possibilities in new businesses in the future, as they put themselves in the driver’s seat of their phantom businesses.
Finally, improving young students imagination will make them aware of the importance of entrepreneurship education in the country and enable them to take it seriously.
In this article, you learned the importance of entrepreneurship in the economy, society, and education. From all we have discussed so far, you can see that entrepreneurship is the hub of development in any economy. To join the productive sector of the economy take action now and create your own business venture. This is a wake call to you to start that business you are dreaming about now.
Please send updates on your new business or share what is stopping you from launching a business on this website.
- SEO Strategies can help the Small Businesses to get Noticed Faster(Opens in a new browser tab)
- Importance of Globalization in Business(Opens in a new browser tab)