Promotes Capital Formation
Entrepreneurs promote capital formation by mobilising the idle savings of public. They employ their own as well as borrowed resources for setting up their enterprises. Such types of entrepreneurial activities lead to value addition and creation of wealth, which is very essential for the industrial and economic development of the country.
Creates Employment Opportunities
It’s tough to land a job, but entrepreneurs make it easier. Entrepreneurs create jobs for themselves, but often they need more than just their skill set and personal initiative to transform their idea to a consumer product or service. Take Microsoft. In 1975, Bill Gates and Paul Allen started their small software company with dreams of changing the way we use computers. They succeeded but not without a great deal of help. Today, Microsoft employs over 100,000 people worldwide.
Together entrepreneurial companies add even more jobs to the economy. A 2013 report by the Ewing Marion Kauffman Foundation found that companies less than a year old with under 5 employees have created about 1 million jobs every year for the last three decades. Those with five to nine employees add about half a million every year. The Kauffman Foundation is an organization dedicated to advancing education and entrepreneurship through its research and initiatives. The National Employment Report found in June that businesses with fewer than 50 employees created 45 percent of all jobs.
Wealth Creation and Distribution
Entrepreneurship stimulates equitable redistribution of wealth and income in the interest of the country to more people and geographic areas, thus giving benefit to larger sections of the society. Entrepreneurial activities also generate more activities and give a multiplier effect in the economy.
Entrepreneurship has created millions of good jobs. In a startup workplace, jobs often call for creativity and collaboration, leading to personal development. Those exposed to entrepreneurship have higher confidence and greater independence. Not bound by the hierarchy and restrictions of large corporations, young entrepreneurs can take on greater responsibility, work flexible schedules and use creative solutions to problem solve.
Promote Social Good
Within the last decade more and more entrepreneurs are focusing their work on resolving social problems. Whether it’s poverty or climate change, these important issues deserve the efforts of these eager entrepreneurs, and their work will benefit society not just through the jobs they create or the sleek product they deliver, but by the people they help.
Entrepreneurs act as catalytic agent for change which results in chain reaction. Once an enterprise is established, the process of industrialisation is set in motion. This unit will generate demand for various types of units required by it and there will be so many other units which require the output of this unit. This leads to overall development of an area due to increase in demand and setting up of more and more units. In this way, the entrepreneurs multiply their entrepreneurial activities, thus creating an environment of enthusiasm and conveying an impetus for overall development of the area.