Importanceof Entrepreneurship in the Economy
Theentrepreneurs in any given country are usually regarded as thenational assets that should be motivated, cultivated, as well asremunerated to the highest possible level. They often change themanner in which individuals work and live (Alvarez,Agarwal & Sorenson, 2005).If they succeed, their innovations and creativity can enhance theliving standards of people. It thus means that apart from creatingwealth from the ventures of entrepreneurship, they create employmentand the conditions for a society that is prosperous.
Significanceof Entrepreneurship in the society
Entrepreneurshipusually creates the opportunities for employment. On starting thebusiness using his monetary assets, the entrepreneur should requiresome time to share the available workload. As such, he will employthe persons to work with him. With time, he will get satisfied withhis monetary investment and as such, he will commence a big business(Carsrud& Brännback, 2007).The huge business will offer more employment opportunities forindividuals.
Entrepreneurshipboosts the development of the economy. Through the creation ofemployment, people usually generate wealth (Drucker,2009).More so, the entrepreneurial innovation and ventures tend to offerthe products of the highest quality at the lowest prices. The peoplecan thus get the best products, and at the same time save theirmoney. As such, this strengthens and boosts the country’s economy.
Additionally,entrepreneurship strengthens small businesses. Mostly, theentrepreneurs find it necessary to invest in small businesses.According to Drucker (2009), such activities usually offer strengthto these small businesses. As a result, the niche markets flourishgiving strength to the national economy (Keister,2005).Therefore, entrepreneurship is an investment, and it is paramount forthe economy.
Lastly,entrepreneurship is essential for the enhancement of the managerialcapabilities. Keister (2005) says that the hugest importance ofentrepreneurship is the fact that it assists in the identificationand development of the entrepreneurs’ managerial capabilities. Theystudy the problem, determine the alternatives, compare the benefitsand the costs, and eventually pick the best alternative. The processaids in sharpening the skills of making decisions (Praag& Versloot, 2008).Moreover, Weber (2012) asserts that entrepreneurs use these skills tocreate new products and technologies, which replace the older onesleading to higher performance.
Thebenefits of entrepreneurship cannot be underestimated. People shouldthus, switch from the mentality of categorizing the sector of smallbusiness as a small separate entity. Entrepreneurship is the corefoundation for the great businesses, and for the economy as a whole.It is from the above explanations that the governments such as thatof Denmark support entrepreneurship.
Alvarez,S., Agarwal, R., & Sorenson, O. (2005). Handbookof entrepreneurship research.New York: Springer.
Carsrud,A., & BraÌˆnnback, M. (2007). Entrepreneurship.Westport, Conn.: Greenwood Press.
Drucker,P. (2009). Innovationand entrepreneurship(3rd ed.). New York: Harper & Row.
Keister,L. (2005). Entrepreneurship.Amsterdam: Elsevier JAI.
Praag,C., & Versloot, P. (2008). Theeconomic benefits and costs of entrepreneurship.Boston: Now.
Weber,R. (2012). Evaluatingentrepreneurship education.Wiesbaden: Springer Gabler.