Entrepreneur and society are elemental for each other. They cannot work, grow, progress and even survive without each other. Entrepreneurs function as the backbone for society same as society plays a fundamental role in the journey of an entrepreneur. Before we discuss the importance of entrepreneurship in society, let’s have a brief explanation of both.
Importance of Entrepreneurship
In our daily life, we consume hundreds of commodities to fulfill different requirements. Starting from the bread for breakfast to the glass for milk at bedtime, a large number of products are used by us. Without even knowing that someone is working quite hard to provide us with all these basics and essentials.
Who is he? He is the entrepreneur.
Who is an Entrepreneur?
“An entrepreneur is someone who conceives an idea,
creates a path to success
and tries to dominate the market” Blad Feld—–Founder of Tech Stars
By SOCIETY we mean a huge number of individuals living together in the same geographical or social territory. In general meaning, society is we all, interacting with each other.
What is Entrepreneurship?
According to Adam Smith a classical economist
“Entrepreneurship can be defined as the study of human actions that lead to changes in the division of labor”
For the fast growth and development of the society, its economic activities are needed to be monitored vigilantly. The economic growth depends upon the four factors of production i.e.
These all are necessary for the function of production. However, Entrepreneur is the most important factor, because he is the brain. All the actions and activities of an entrepreneur result in the development of society. That’s why the importance of entrepreneurship in society is inevitable.
This is a never-ending debate. Studying society is a wide subject. The importance of entrepreneur and The importance of entrepreneurship for individual are the main heads in this study. Society is formed by individuals and entrepreneurs are also a part of that society. There are four major types of Entrepreneurship.
Need of Entrepreneurship
Entrepreneurship affects the society in various ways which are not easy to be summarized. This article is to serve the purpose of making it easy for everyone to understand how these two are interrelated.
Entrepreneurship and society has a direct relation as they directly benefit one another. Entrepreneurship is of social as well as of economic importance at the same time. Though we cannot separate the social impact of entrepreneurship from economic importance, we have still tried to give a clear version of these two aspects through different windows.
Creation of Wealth
The core of entrepreneurship is wealth creation. An entrepreneur manages and utilizes all the factors of production in such a way that the maximum output can be generated. Increased production leads to rise in income both for the entrepreneur and the individuals.
Entrepreneurs create work opportunities not only for others but also for their own self. The importance of entrepreneurship to individual cannot be neglected for the provision of employment. All the major activities of entrepreneur revolve around the people of the society. After the creation of wealth, the best way in which entrepreneurship serves the society is the availability of vacancies in new business under different categories.
Beginning of every new business opens the doors of employment for every class of the society irrespective of the sect, gender, and color discrimination.
Helps to Increase GDP
GDP refers to the Gross Domestic Product.
“Gross domestic product is the sum of the final value of all the finished products, produced by a country”
The importance of entrepreneurship in society is more towards economic growth and development. It increases production activities as every new unit of production means more goods to be produced. The overall result of the increased production through every new entrepreneur boost the GDP.
Read this article also 7 Ways to Stay Productive as an Entrepreneur
Gives boost to Per Capita Income
An increase in Gross Domestic Product in return gives rise to the per capita income. Per Capita Income (PCI) is the average income earned per person of the society, city, country or region. PCI is calculated by dividing the country’s GDP by its total population .thus entrepreneurship helps every single person of the society directly or indirectly.
Healthy competition is necessary for the growth of the industry as well as of the economy. Every entrepreneur enters the market with its innovative products. Entrepreneurship brings about new ideas and innovation to the products and services for the desire to attract the masses, to survive in the market and to gain maximum profits.
By producing more it balances the DEMAND and SUPPLY graphs hence act as a controlling measure for INFLATION. It brings more options to the buyer to choose among on competitive prices. An environment of competition prevails in the market that is good for a healthy economy. This competition goes in favor of individuals who form the society, as they can purchase desired good at an affordable price and in good supply.
The importance of entrepreneurship in the society is quite visible as it deals with the production of goods and services to meet the demands of the society. As the predominant function of all the actions taken by an entrepreneur is to produce, the needs and requirements of society are satisfied.
Finances and Society
The entrepreneur takes initiatives to start a business single-handedly. He fulfills the basic requirements to set up the system. Entrepreneurship is responsible for arranging the finances for business to take off and takes all the risks. It, therefore, finances the society indirectly by investing capital in new projects.
Also, read the 13 Habits of Successful Entrepreneurs
An entrepreneur ought to be innovative to survive in the existing market. If he desires to give tough competition, He must have to come with new ideas. Innovation is the main trait of entrepreneurship.
“Entrepreneurship works for making any new inventions
and implementing it,
improving the method of production or
bringing revolution in that”
How can one deny the importance of entrepreneurship in society in the form of social activities? Entrepreneurs are the ones who take initiative for building society up. First, by providing income hoisting prospect. Further, by contributing to the welfare of the people in the form of charity and donations.
Entrepreneurship helps the Government in both ways i.e. directly and indirectly. Directly by paying taxes that add up in the revenues of the government to be utilized for the development of society.
Indirectly, strong entrepreneurship helps the government to implement development plans related to health and education of the general public and constructing megaprojects. Entrepreneurship and government go side by in the growth of the economy, towards a prosperous society thus country.
The importance of entrepreneurship to individual is inescapable. The opportunities created for increasing the income and reducing expenses of the inhabitants is remarkable.
Entrepreneurship affects the life of every individual of the society in a positive manner. The societal prosperity changes the lives of individuals.
Conclusively, the presence of entrepreneurship is indispensable for the individual as well as for the society to survive.