The word “entrepreneur” comes from French. It means to undertake, and in this case, it means to undertake or to manage organisations. Entrepreneurship (the process of starting and running a new business) is defined as the “capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit”. Now, the question is, do entrepreneurs and their ventures indeed only generate profits and jobs? Or do they serve some other function?
The answer is, my compadre, entrepreneurs contribute on a much larger scale. And they help contribute to the country’s economy in multiple ways. Since India experienced its startup boom, the economy has also been on a sharp rise. And what about the effects? Read on…
Here’s how entrepreneurship helps contribute to the economy
1. Regional Growth Increases
Think how much growth cities like Bangalore and Hyderabad made. Coincidentally, they have also grown leaps and bounds in the last two decades. As startups increase, so does the region. Think about it, when multiple entrepreneurs start their businesses, they not only create jobs inside but also around the proximity, which leads to overall wealth creation and sharing. All the major cities have entrepreneurship development happening around them.
2. National Income Increases
Multiple states, multiple regional growth equals? That’s correct! National growth and income. Entrepreneurs add their profits directly to the GDP of the country. Not surprising considering that they create local jobs and increase the influx of wealth that flows into the system. Here’s how it happens. A startup plan needs investment that puts people’s idle savings into use. The capital is then put to use in a creative way which directly means productive utilization of national resources, thus mobilizing money.
3. Reduces Unemployment
Unemployment is a serious issue in this country. And there is only one way to tackle that: create jobs. Entrepreneurs do exactly that. They create jobs and help in an overall uptrend in the economic growth of the country. Many start-ups also employ fresh talent reducing job hassles for immediate graduates. The internship programs nurture skills and make better professionals overtime. While the productivity increases, so does the GDP. And believe it or not, unemployment is correlated to criminal activities. That is, the lesser the crime, the lesser the unemployment.
Startups look for talent and skill-set, which is sometimes absent in larger companies, who tend to focus more on the years of experience. Not to forget, they provide a lot of career opportunities and you can easily work across departments and verticals. Startups help you understand the work across different teams and help you move to different teams, in case you feel. More career opportunities, more regional growth and employment!
5. Social Change
A lot of startups work on social grounds along with think tanks and governmental agencies. These issues can range from education to safety. This ensures that they not only work for this generation but for future generations. This leads to the strengthening of the economy and leads to a lot of social changes that need immediate attention. Some of them aim at primary education in rural areas while some aim at distributing free menstrual pads.
These are some of the many ways entrepreneurs and their organizations help contribute to the country’s economy. A state with blooming entrepreneurs is definitely a step ahead of the rest. More entrepreneurial minds mean more innovation. A developing nation needs more entrepreneurs and innovative ideas to ensure stable growth. Entrepreneurs add value to the economy in an overall way, not just by injecting cash into the economy and creating products for end-consumers.
How you find opportunities and how you cease them are the 2 significant qualities of an entrepreneur. Entrepreneurship is an art. A skill. It is the way you look at things that makes you an entrepreneur. So, go ahead and dream big, create your own value and contribute to the country’s economy!