7 Roles Of Entrepreneurship In Economic Development

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7 Roles of entrepreneurship in economic development

Hey guess what? There’s more to entrepreneurship than just running your own business, doing your own thing and making a profit. Entrepreneurship also plays a major role within the development of the economic system and here are 7 ways how.

1. Entrepreneurship provides the generation of employment opportunities

Entrepreneurial development gives rise to economic independence through self-employment, thereby solving the problem of unemployment in the economy. Through the creation of micro, small and medium enterprises by the entrepreneurs this can lead to the creation of both self-employment and wage-employment opportunities.

2. Then there’s also Capital formation

In the economy it may be brought about by the formation and up-gradation of skills of human capital. This is in terms of knowledge and skills which can be utilised to raise the level of productivity whereby economic growth can be accelerated.

3. Social stability

By providing equal opportunities for those who are marginalised or even the vulnerable in society like women. By empowerment through enterprise involves access to resources and markets, actual ownership and active control. These things lead to equity and equality among men and women and act as a lever for social stability to contribute equally to a growing economy.

4. Conservation agent

Entrepreneurship allows for maximum utilisation of natural resources. Entrepreneurship promotes environmental friendly technologies like solar-powered LED lights and energy saving stoves which use less firewood and also save time and money for the user.

5. Increase in per capita income

Economic growth is measured in terms of a sustained increase in real income. It’s the entrepreneurial communities who complement and supplement the economic growth increase per capita income by identifying and establishing profitable business ventures.

6. Growth of infrastructural facilities

Entrepreneurs help in the growth of infrastructural facilities such as roads, bridges, buildings, factories, etc. which are the cornerstones of economic growth. Establishment of factories and industries in a particular locality presupposes the growth of infrastructural facilities.

7. Promotion of technology

Since we are living in the digital era technology and economic development go hand in hand. Thanks to technology trends such as high-speed internet access, collaboration tools and video conferencing. Employees no longer need to be in the same physical location bringing about a productivity level to the economy.

 

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