Brown and Upton had the opinion that Entrepreneurship can be known as the method of gaining, pulling simultaneously all the resources, and installing them in the quest of apparent chances in the coming future for lengthy gains.
Why entrepreneurship plays a vital role in the economy?
- A very core and fundamental role is played by entrepreneurship in any economy and the reasons why it holds such a dominant role in the economy is discussed minutely in the given article. The constructive impact of entrepreneurs on the society is also quiet evident in the given paragraphs. When a 2 year and 10 nation survey was conducted the impact of entrepreneurship stood up evidently saying that the countries have high levels of entrepreneurial activities when compared to countries having lower levels of the same shoed drastic differences in factual data of growth rate. Now let us go in depth of the reasons why entrepreneurship
holds a dominant position in the society? The following reasons are responsible for the same;-
1) Provides employment to huge mass of people; - people often hold a view that all those who do not get employed anywhere jump into entrepreneurship, a real contrast to this is that 76% of establishments of new business in the year 2003 were due to an aspiration to chase openings. This emphasizes the fact that entrepreneurship is not at all an encumbrance to an economy. What's more is that approximately 34 million of fresh employment opportunities were created by entrepreneurs from the period of 1980. This data makes it clear that entrepreneurship heads nation towards better opportunities, which is a significant input to an economy.2) Contributed towards research and development system; - almost 2/3% of all innovations are due to the entrepreneurs. Without the boom of inventions the world would have been a much dry place to live in. Inventions provide an easier way of getting things done through better and standardized technology.
3) Creates wealth for nation and for individuals as well; - all individuals who search usually, create wealth by entering into entrepreneurship. The wealth created by the same play a considerable role in the development of nation. The business as well as the entrepreneur contributes in some or other way to the economy, may be in the form of products or services or boosting the GDP rates or tax contributions. Their ideas, thoughts, and inventions are also a great help to the nation.
4) Sky-scraping heights of apparent prospects; - the individual gets maximum scope for growth and opportunity if he enters into entrepreneurship. He not only earns, the right term would be he learns while he earns. This is a real motivating factor for any entrepreneur as the knowledge and skills he develops while owning his enterprise are his assets for time which usually, lacks when a person is under employment. The individual goes through a grooming process when he becomes an entrepreneur. In this way it not only benefits him but also the economy as a whole.
5) It is a challenging opportunity for the people: - although entrepreneurship is a challenging task but in most of the cases the rewards it gives are much more than what one anticipates. It does not only reward an entrepreneur at financial levels but also on individual level. It provides self satisfaction to the entrepreneur.
6) Entrepreneurship provides self sufficiency; - the entrepreneur not only become self sufficient but also provide great standards of living to its employees. It provides opportunity to a number of people working in the organization. The basic factors which become a cause of happiness may be liberty, monetary rewards, and the feeling of contentment that one gets after doing the . Therefore the contribution of entrepreneurs makes the economy an improved place to live in.
Now as we are through with the importance of entrepreneurship let us become a bit more specific and enter into individual country details. The importance of entrepreneurship for some countries is given as under; -
a) What role does entrepreneurship play in America: -
American economy is well known for its flexibility, adaptability, and grasping of opportunity and it is all because of prevalence of entrepreneurial culture in the economy. The above statement can be well supported with the help of factual data given; taking into account the period 2003 to 2007 the generation of employment has reached 7.2 millions which is more than the total jobs being generated in Japan and Europe. For this the economy had to upon the same for 41 months without any postponement. For these jobs the American workforces are taking back home hefty amounts. Post tax earnings have gone up by 9.6% that is $2,840 from the time when the president has taken oven the charge. The growth of America is in leaps and bounds and that is all because of the insistence and efficiency of American entrepreneurs.
b) Importance of entrepreneurship in European economy: -
The importance of entrepreneurial activities was realized by the European economy in the year 1980. Recently a number of fresh opportunities for entrepreneurial proposals are being dug up in European economy. The entrepreneurs are today seen as the catalyst which speeds up the process of creating wealth for the economy, providing jobs, and providing an assorted range of goods and services to the consumers. Entrepreneurial undertakings are now being introduced to college going students which could give them an idea of creating and managing firms, relevance of entrepreneurship firms to European financial system, uniqueness of monetary ventures, managing human resources, pecuniary transactions, legality in dealings, and learning entrepreneurial skills.