The contributions of entrepreneurs in economy
The financial situations created by debt and economic downfalls have created several doubts and confusion sin American’s minds regarding the future of American economy and its security. Apart from the debt settlement companies and their debt relief programs which always are ready to help the debtors, we need a system and a strong financial foundation which will not only initiate a financial process but will look into its final implications in the society; and entrepreneurship is the best device for the same. Apart from introducing breakthrough technologies in the market, entrepreneurs create business that require manpower and give birth to employment opportunities in society. The businesses created by entrepreneurs provide tax revenue to local, state, and/or the federal government, which are then used to provide a wide range of important services like transportation, healthcare, education, construction etc. According to most Americans entrepreneurship is the key to solving the current U.S. economic crisis, but despite that belief, the vast majority of those people are reluctant to start businesses themselves in today’s uncertain economy. A survey done by a research firm found out that about 70% of respondents think the health of the U.S. economy depends on the success of entrepreneurs, while 80% want to see government actively use its resources to promote entrepreneurship. It also said that about 56% of respondents said they would trust small-business owners to guide the economy, while only 14% said they would trust members of Congress. The executive director of a reputed corporate, Carl Schramm said in news release that “History has repeatedly demonstrated that new companies and entrepreneurship are the way to bolster a flagging economy.”
As economies continue to integrate due to globalization, entrepreneurship is on the increase. A close analysis of developed and industrialized economies indicates a common denominator that stands out amongst all of them, and that is the important role played by entrepreneurship and entrepreneurs in such economies. Irrespective of any reasons which drive an individual to be an entrepreneur, it is clear that innovation and creativity is the driving factor and therefore it can be stated that the biggest impact of entrepreneurs to an economy is the innovative contribution that they make. As a result, by being enterprising, creative and finding a market niche, not only are they able to generate an income for themselves but also to employ other individuals in their business operations. Therefore one of the most positive impacts that entrepreneurs make on an economy is job creation and the reduction of unemployment levels within that economy. Another positive impact of entrepreneurship on an economy is the increasing level of competition in that economy as new entrepreneurs joins the fray in existing domestic markets. Thus it can be stated that competition reduces likelihood of monopolies and oligopolies in the marketplace and is beneficial to the customer and the economy as a whole. All this often results in an increase in productivity in an economy and an increase in the gross domestic product (GDP), which is indeed a benefit for the economy; thus re-inventing the wheel and driving the economy forward. Entrepreneurship also encourages new markets to flourish in the economy which makes the economy varied and versatile with more growth and employment prospects. It is significant to note thus that entrepreneurs can actually play the role of building blocks of our future economy.
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