Why are entrepreneurs important?
For many reasons, we break them down for you.
Do entrepreneurs benefit the world at all?
That’s a harsh way to ask that question, but it’s also straightforward and to the point.
There have been countless heated debates about this topic online, and it’s incredibly divisive.
One side thinks that entrepreneurs are saviors of the world who can do absolutely no wrong, while the other side thinks that entrepreneurs are the scum of the earth who prey on everything and everyone.
While hero-worshipping entrepreneurs is a dumb thing to do, calling them outright villains is also downright stupid.
This article will show you why entrepreneurs are important and how they benefit the world.
Entrepreneurs improve the world by bringing new and improved products into the market.
Entrepreneurship drives economic growth and productivity by bringing new and improved products and services to the market. This is significant as it increases efficiency and competitiveness, resulting in greater economic output and job creation.
Small businesses, often established by entrepreneurs, are a key driver of productivity growth in the economy. They create employment opportunities and provide a growth hub for the economy. Governments can spur economic growth and development by encouraging entrepreneurship and supporting small businesses.
Moreover, entrepreneurs play a significant role in the global economy by developing innovative solutions to societal problems. Identifying and addressing unmet needs can create new markets and industries, driving economic growth and prosperity.
This also leads to social and environmental benefits, as entrepreneurs develop products and services that contribute to sustainable development.
Entrepreneurship also provides job opportunities, which are essential for economic development. By creating new businesses and expanding existing ones, entrepreneurs create employment opportunities that can increase economic growth and development.
In addition, entrepreneurs can contribute to skill development and training programs, providing opportunities for employees to upskill and progress in their careers.
Entrepreneurship improves productivity
Entrepreneurs make people’s lives better because they make Shamwow!
Speaking of Shamwow, entrepreneurs don’t necessarily need to sell completely new inventions or products.
They can take products already on the market and improve them further. Shamwow is a new product, but it’s just a new and improved towel.
Thinking about it, cars also fall under this category since they’re just horse carriages that replace the horse with an engine.
The business world is notoriously competitive, and businesses are constantly at each other’s throats for more market share. Competition between entrepreneurs and companies drives them to improve to gain more customers continuously.
This competition benefits customers since customers have a constant stream of new products to try, and those products only improve as time passes.
A good example of two competitors constantly innovating and making new things to draw in customers is Cola and Pepsi. For an extended period, Cola and Pepsi were releasing new products to outdo each other at every turn. If there were Diet Pepsi, a Diet Coke would eventually come around.
If there were a Coca-Cola Zero, Pepsi Black would eventually come around to try and beat it.
Because of this competition and constant need to one-up each other, consumers now have an almost endless choice of sodas.
If you’re considering choosing a zero-calorie soda, Pepsi Black tastes better than Coca-Cola Zero, but that’s a matter of taste!
Entrepreneurs Help With Economic Growth
Entrepreneurs play a crucial role in economic growth by driving innovation and creating new businesses, products, and services. This leads to an increase in competition, productivity, and job creation which, in turn, reduces unemployment.
The creation of new businesses is essential as it provides an avenue for entrepreneurs to develop innovative ideas, create new products and services, and enter new markets.
This leads to increased competition, which stimulates economic growth and development. Furthermore, establishing new businesses can ripple effect on the economy by creating demand for goods and services and spurring investment.
Entrepreneurs also drive innovation by developing new products and services that meet the changing needs of consumers. These innovations can lead to the creation of new markets and industries and the improvement of existing products and services. This, in turn, leads to increased productivity and competitiveness, which are essential for economic growth.
Job creation is another meaningful way in which entrepreneurs help with economic growth. By starting new businesses, entrepreneurs create employment opportunities for the local population, which reduces unemployment rates and contributes to overall economic development.
In addition, entrepreneurs can help reduce income inequality by creating jobs in underserved communities and providing training and skills development opportunities for their employees.
Entrepreneurship also attracts investment and foreign capital to the economy. Investors and foreign companies are attracted to regions with a robust entrepreneurial culture and a supportive business environment. As a result, entrepreneurs can help to spur economic growth by attracting investment and foreign capital to their businesses and the wider economy.
Entrepreneurs play a critical role in driving economic growth by creating new businesses, driving innovation, creating jobs, increasing competition and productivity, and attracting investment and foreign capital. It is essential to support and encourage entrepreneurship to foster economic growth and development.
Entrepreneurship Helps the Economy by Improving Productivity
Entrepreneurship improves productivity by driving innovation and introducing new processes and technologies. Entrepreneurs identify opportunities for improvement and are willing to take risks to implement changes that can increase efficiency and competitiveness.
By promoting competition and pushing boundaries, entrepreneurship encourages firms to improve and adapt, resulting in higher productivity levels constantly.
Competition helps to boost productivity by encouraging firms to become more efficient and innovative. In a competitive market, firms must constantly improve their products and services to remain relevant and attract customers.
This drives firms to adopt new technologies, develop new processes, and find ways to produce goods and services at lower costs. The result is increased productivity as firms become more efficient and output per worker increases.
Competition also leads to a wider range of choices for consumers, incentivizing firms to provide better-quality products and services.
This leads to greater economic output, job creation, and overall economic growth.
Entrepreneurs bring innovation and can even bring about entirely new industries.
Offering a readily available product is good because it ensures there’s never going to be a shortage.
Offering a new and improved version of that product is better because now there’s a better choice available to consumers while ensuring more choices are available.
While improving already available products is better, entrepreneurs can bring about incredible innovation and even completely new industries in their quest for endless wealth.
Let’s look at a few examples of entrepreneurs that brought about innovation and paved the way for brand-new industries.
Henry Ford did not invent the automobile; he did not invent the car. Don’t give him credit for that.
What Henry Ford did was make and sell cars that were affordable for regular people in America.
While Henry Ford was regarded as a decent car maker at best, he became legendary for putting a car in almost every American home’s driveway.
Ford made cars that weren’t just luxury products only available for the incredibly rich and can be credited with jump-starting the consumer automobile industry as we know it today.
Ford harnessed the power of mass production and put almost every American in a car. Cars are made affordably and efficiently because of the innovations of Henry Ford. Mass-producing cars in factories ensured plenty of them available for consumers, and there were plenty of sales for Ford.
At one point in time, almost every car driven in America was a Ford product. While that’s not the case anymore, you can thank Henry Ford for making affordable cars for regular people.
If you’re reading this article on a laptop or a desktop, you can thank Bill Gates for that.
Bill Gates is the reason that almost the entire world knows how to use a computer.
Gates and Windows dominated and won the operating system wars back in the day, which is why Windows is currently the most used OS in the world.
It’s not just computers and operating systems either. Windows also make a lot of software that the world depends on.
The world pretty much runs on Excel, Word, and Powerpoint. There are other options out there, but almost every established government or business uses Windows offerings by default. You might have forgotten, but Windows also makes internet browsers.
While Internet Explorer and Microsoft Edge probably aren’t your choice of internet browser, they’re both widely used worldwide, so they should also be considered successes.
Also, for anyone in that particular generation, Bill Gates is why the Xbox, Xbox 360, and Xbox Live were part of your lives. Those last ones might be good or bad, depending on who you are.
Now you’re probably thinking why we didn’t put Elon Musk first… it’s because you more than likely were already thinking of him even before you read this part of the article.
Elon Musk is probably the great entrepreneur of this generation, even if he’s a bit of a divisive figure.
He’s the entrepreneur behind Tesla and SpaceX, who make electric cars and rockets. Whether it’s electric cars or colonies on Mars, Elon Musk is paving the way for the future.
While he’s most famous for being the face of Tesla and SpaceX, Musk has had a hand in quite a few innovative companies.
For example, Musk was instrumental in the making of PayPal, a payment processor used by countless people around the world. Also, he very recently bought Twitter.
Twitter. He bought a whole social media company because he wanted to.
Those three entrepreneurs above are just a starting point. Many more entrepreneurs helped start new industries for you to read about. Reading up on these entrepreneurs is both interesting and inspiring.
Where would you start, though? Here’s a hint; The video game industry wasn’t started with the Xbox 360 or Xbox. To find out how the video game industry began!
Entrepreneurs build companies and create jobs.
Jobs keep people housed and fed. Job creation is important to keep people employed. Entrepreneurs and business owners are a key part of a healthy economy since they need workers to make a profit and create jobs.
There are tons of entrepreneurs who start their entrepreneurial journey alone and end it alone.
However, many grow and expand their business to the point where they need hundreds to thousands of employees to function. These jobs aren’t just important for keeping people employed and fed through.
Entrepreneurs tend to create more entry-level jobs compared to already established companies.
This is important for building up unskilled jobholders and turning them into skilled workers in demand everywhere. This does two things:
- Ensures that fresh graduates have a job that allows them to improve themselves.
- Ensures that eventually, positions that require more highly-skilled workers are filled and aren’t kept vacant.
As entrepreneurs grow their companies, they hire more workers, creating more jobs. The workers in these jobs also grow with the company.
They also might eventually start their own companies, which could continue endlessly. The cycle continuing is a good thing for the most part.
If an entrepreneur grows their business into massive company, it’s no exaggeration to say that they’ve become important by providing jobs for hundreds or even thousands of workers.
There are definitely entrepreneurs and businesses out there who are absolutely terrible and deserve all the hate they get.
However, lumping every single entrepreneur together with them and calling them all evil is dumb. Entrepreneurs benefit society and the world in many different ways.
Entrepreneurship, especially responsible entrepreneurship, should be applauded and actively encouraged.
Do you know a fledgling entrepreneur? Give them a pat on the back, and tell them to keep going! Are you a fledgling entrepreneur? Keep it going, you’re doing great!