How Entrepreneurship Plays a Pivotal Role in Economic Development

Lately, there is a lot of debate regarding the future of work. These discussions are stimulated by the rapid rate of technological advancements and their impact on industries. While technological advances will have a greater impact on future jobs, people will increasingly venture into entrepreneurship, and this will prevent projected job losses. This article looks at how entrepreneurship plays a pivotal role in economic development:

a)   Entrepreneurship effectively deals with environmental issues

Modern entrepreneurship models breed efficient ways of producing products without damaging the environment. Climate change, global warming, and emission of greenhouse gases have affected water sources. Water is necessary for the production of electricity, irrigation, and building of infrastructure. Without this resource, there will be no electricity, which means industries won’t run and commerce will grind to a halt. Irrigation will also not happen, and this means an insufficient supply of food to the population. Not to mention infrastructure building will stall. This underscores the impact of environment on economic growth.

b)   Entrepreneurship contributes to the creation of employment opportunities

This is a no-brainer; entrepreneurship creates jobs for the population. The government alone cannot create employment for the entire population. It requires partnership with the private sector and individual entrepreneurs. This is why most governments are spearheading efforts to empower people to start their own businesses.

c)    Entrepreneurship cultivates regional trade and integration

As a result of entrepreneurship, a country can expand its outreach into local and global markets through exportation. Apart from contributing to a region’s productivity and earnings, entrepreneurship fosters regional integration and alleviates future conflicts.

d)   Entrepreneurship creates new products to fill market gaps

Entrepreneurship can help a country to save a lot on importing products it doesn’t produce. Smart entrepreneurs always look out for any disparities in the market and fill them. So if a country doesn’t produce vehicles, entrepreneurs will find ways to build a vehicle manufacturing plant to fill the market gap. Mostly, they will turn ideas into useful products for the population.

e)   Entrepreneurship brings about competition

Competition is good in any field. First, it leads to the production of superior quality products, as every business wants to stay ahead of the pack. This is a great victory for consumers because they’ll be sure of getting only high-quality products. Competition also brings about efficiency since every enterprise will want to use the finest pieces of technology to stay competitive. This elevates a nation’s reputation for producing high-quality products, which promotes its economy in the long run.

Conclusion

It’s important to note that entrepreneurship can only thrive with government support and regulation. The government must enable access to finer pieces of technology and provide a level-playing field for everyone to prevent unfair competition.

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