Lesson 3: Roles of Entrepreneurship and Entrepreneurs in Economic Development and Society.
Generates New Sources of Materials
Entrepreneurs are always in constant search for better and cheaper sources of materials they need. Finding new material providers help in the economic growth of the place. These could be sourced from because of the value creation.
Develops New Markets
Entrepreneurs are opportunity-seekers, creative, and resourceful. They seek for new buyers or customers of their product or services. They go beyond the existing places where their products are sold and look for other people who will be interested.
Serves as Role Models
Entrepreneurs are people to be emulated by younger generations in the community and society at large. The attitude, behavior, and personality traits, like proactiveness, opportunity recognition, risk-taking, alertness, and creativity, are some of the characteristics that will also make them successful. entrepreneurs in the future.
Introduces Innovation
Entrepreneurs innovate. Innovations can be something ordinary or technological or breakthrough. This innovation is done for the product, service or technology towards commercialization and generates economic wealth. Due to innovation, other businesses fold, while others will open or flourish. Some even restructure like merging or buying-out firms, to respond to the changes that are required in order to become sustainable in the business.
Brings Social Benefits to The People
Entrepreneurs pay taxes for every product or service sold in the market. They also pay for the permits and licenses to operate their businesses. The income derived from all these taxes by the government are then used for the people, especially the poor to have more access to social services such as education and health, as well as improvement in infrastructure facilities, such as roads and bridges for faster and safer transportation of people from various destination.
Utilizes and Mobilizes Indigenous Resources
Small and medium enterprises will always look for cheaper and local materials to supply their needs. They also make use of idle or unused resources to meet their needs. This saves much in terms of foreign currency as local enterprises patronize their own resources and they do not become dependent on imported materials.
Improves the Quality of Life
The new products and services developed by the entrepreneur contribute to the increase in the personal benefit and convenience of people in society. The use of automatic gadgets in cooking or washing clothes, mobile phones, internet services, agricultural machines, and many other innovations leads to a better quality of life.
Provides More Alternatives for Consumers
The stiff competition in the market for quality and cheaper products and services requires the entrepreneurs to come up with more products and services consumers can choose from. Entrepreneurs also become more concerned about the welfare of their consumers, and ethical in producing and selling their products or services, in order that consumers will prefer them over the other enterprises selling the same.
Stimulates Investment Interest in The New Business Ventures Being Created
When entrepreneurs engage in a new business, it stirs curiosity for other people to invest in the business because of the benefits it offers. This new investment contributes to economic growth.
Creates Employment
When entrepreneurs put up their businesses, they employ people who possess different competencies and personal values to help them operate the enterprise.
