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Importance Of Entrepreneurship In Economic Development



Importance Of Entrepreneurship In Economic Development


What do we first of all mean when we talk about entrepreneurship? In quite a straightforward term, this phrase can be defined as the unique process of creating and organising a business adventure, growing it and generating lots of good profits from it.

It is not always just about making profits, it’s also about the ability of someone who has the vision, capability and idea to act quickly at opportunities and find a way to convert it into goods and services and make profits out of it.

Some might get to say, which is also correct, that Entrepreneurship means the ability of someone to start a new business and has the capacity, will, and consistency to handle it quite expertly and guide it to blossom into a large company, yielding lots of profits for the person.

This is actually in other words what people tend to do in other to take up their dreams and into their own hands, making and enacting their own choices on the business without accepting orders from another person on how to handle your business.

Being a good entrepreneur is not a walk in the park, everyone does not do it, and not all have the capacity to stand with the business through the good and the rough journey of its growth.

An entrepreneur is someone that can be able to recognise excellent huge potential when they see it, works on it and makes it a reality.

Entrepreneurs are someone that takes action in other to help to bring about a tremendous positive change in the whole world, and they are the ones that solve a problem for the society and helps create jobs, and revolutionary inventions.

It all lies about taking actions, being able to achieve great things either individually or assembling a great team of the same potential to make it.

Jordan Belfort, the infamous Wolf of Wall Street, said “To get the best results in a business and to make much money through it you need to assemble the best minds, people that have the same hunger and taste for success like you”.

An Overview Of Economics Development

Economics development is the process by which a country’s economic positive growth and well being are being intensively improved according to their laid down objectives, goals and ambitions discourse.

It is largely aimed to achieve an increase in the GDP of a Country, their Citizen’s literacy and education level, a reduction in their mortality rate, and also find a way to reduce their citizens’ poverty rate drastically.

For this to be a possibility for most countries, they must, first of all, make sure that everything put in place to make life easier for people is put in place.

Schools built, hospitals fully equipped and running smooth and various other basic amenities that helps to make life much more comfortable.

Some countries with very high visible economy enjoy this kind of things due to the fact that they have the facilities, the technologies and various other capabilities to make that a possibility, meanwhile there are some countries that can’t boast of these things, because they lack the skills to do so.

Most of these countries do not have enough security and protection which will allow for the freedom and also of the flow of trade and business.

Some countries that do not have enough amenities like electricity, good roads and the rest of them thereby stopping them from achieving this growth.

Economic development deals on the process by which low-income businesses will be transformed into a significant modern industrial economics.

It further deals on a change in a nation’s economy, and transactions involving a qualitative and also quantitative improvement in its sector.

How local business can scale to more prosperous ones.

The issue of Economic development first became a thing of concern to the world after the second world war precisely, many countries which were ravaged by destruction and carnage with little or zero standard of living were described as underdeveloped countries Counties like Japan, South Africa, USSR (Soviet Union) New Zealand was in this situation but as the years went by due to their good policies, they were able to develop itself.

A nation’s economic development is calculated by checking the per capita income of its citizens, as the per capita income increases it shows that the country is having a good economic growth but when the per capita income reduces it shows that their economic development is low.

A Nation’s per capita income is best gauged by the value of goods and services which is made available for one person and then to the society per year.

Keeping a country stable and achieve economic development is more like an uphill take for the Government, most times they find it hard to make price stable, provide employment for the total populace and create substantial growth, this affects their fiscal policies and also leads to an increase in tax on trades and other areas in other to help fund the Government.

These funds generated by the Government is being used to create infrastructure with other basic social services which might include, railways, highways, reduction of crime through adequate equipping of the security apparatus, making houses affordable to the masses and also subsiding the cost of various things being acquired by the Citizens.

Most cases, the Government creates organizations and companies in other, which leads to massive job creation for the masses in areas such as finance, production, and other various aspects of the economy.

For a Country to have a good economic development, everything should be checked and properly analyzed, International trade and a country’s exchange rate is a significant fact in economic development.

To discuss the importance of Entrepreneurship, to the economic development of a country, we need to first of all study how it wraps its head around Entrepreneurship.

Over the years the world has begun to see the importance of Entrepreneurship in the world they have always found a way to provide an excellent adequate environment to make it thrive since there is no way everything and the development of a Nation should be left only to the Government to deliver.

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In some countries, some panels are set up to boost their country’s economic development through some strategic ways.

This panel created to provide the required leadership required to run a smooth economy by making adequate policy after studying the market and seeing the best approach to work with and they also make sure that this laid out policies are being correctly carried out by the necessary bodies.

These panels work in public offices on the state and are also funded by them through the taxpayer’s money.

Their primary role in the country is to seek out new business opportunities that can create maximum wealth for the Government and the masses in general.

They also seek for loans on behalf of the masses or aspiring Entrepreneurs that will help them in boosting their business.

The World International Economic Development Council, which have its headquarters in Washington DC, USA.

The goal of this non-profit oriented organization is to help these economic developers to perform their Job adequately by providing a good working environment which makes doing of business more efficient and little or no issue, and they also help to compile the World Banks’s “World Development Indicators” to know how different countries which are registered with them are working towards their own development and give their assistance and help to countries that needs it.

On numerous occasions they have stated that a nation’s economic development hugely depends on the existence of a faster modern day means of transportation, they have argued that the more faster a means of transportation is thecountry is the faster the country will develop economically.

They said for Entrepreneurs to perform at thier too they need to be having great access to be moving on and around states easily.

These panels and bodies created to advance a Country’s economic development through Entrepreneur helps to provide equal empowerment among the different genders most expecially on women by helping them more to maximize their full potential and provide conducive environment for them to trive in.

As good as working towards an economic development of a country is, in some certain situations it has led to an uneven intense competition among various communities and societies, this situation is seen as a welcome development as it will now help to rapidly improve the standard of living in their various countries even though every bit of development is been hugely dependent on the tax being paid by the masses.

For them to make a proper development of the economy a good statistically database is been kept to gauge and measure their development, keeping a good record of the proceeds of a state is necessary to serve as a determing angle on how far the state is developing.

Importance Of Entrepreneurship  In Economic Development

Entrepreneur serves as a role model for the upcoming generation.

They serve as a source of inspiration for other aspiring Entrepreneur to put in more effort and to try their best to bring out their best potential, and people tend to admire very successful people, follow up on how they were able to achieve their feat and also try as much as possible to make theirs too.

Entrepreneurs are naturally seen as a national asset that needs to be gently processed and harvested, handling it with intense care and consistency in other for it to be grown to its highest potential and serve as a national treasure.

Motivated Entrepreneurs have the capability to change everybody’s way of life once they are successful, they create much help to improve the general standard of living of people living in that community through the creation of wealth and jobs for the betterment of everybody.

Entrepreneurship is very essential to our lives for various reasons, from their unique innovations and adequate social changes.

Through them, a country achieves both economic development and growth with will help the country to thrive and perform well in both local and international basis.

These new services that are being created from the vision of entrepreneurs helps to produce great qualitative attributes to the community.

For example, in India, due to their good favourable policies for entrepreneurs, an information technology company began to grow during the 1990s, which was created by Entrepreneurs.

It began to expand in the country, and various other sectors of the nation’s economy began to grow through it, and due to how they sent it out to other countries it largely brought an inflow of wealth into the large nation which resulted to their development.

As this begna to happen the educational sector of the country began to invest heavily on teaching their younger generations about ICT and as they grow they got employed into the ICT industries and began to receive good salaries which leads to the economic development of the nation all these through the help of Entrepreneurs.

All these were possible due to the fact that their government saw what the vision of Entrepreneurs would lead to great things for their country; thus the began to make favourable policies, good governance and provision of some basic amenities which will help to improve their Entrepreneurs productivity.

Entrepreneurs are those that make a plan, invest on it, work on it consistently and nurture it till it becomes a great innovation and then begins to use that innovation to help out people around him by giving them access to make use of it.

They are also those people that bring together human resources, capital and other necessary things together to use it and achieve something or satisfy a specific need of the people.

They are the number 1 input in that helps to facilitate the development of a country’s economy, their role is very pivotal not only in the event of a nation’s economy but also to the growth of that economy.

They also help to promote capital formation, by helping to mobilize the savings of the masses and use it to achieve a purpose, whereby they bring out very beautiful ideas which will provide maximum profit for the country and also attract various other investments from outside bodies.

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Entrepreneurship still remains one of the main ways a country’s can develop economically, they are not affected by the so many factors just like the governement, their sole purpose it to have a vision and work tirelessly to achieve that purpose without interference from anybody or with nothing to bother which is always the case with lots of opportunites being handled by he governement.

Other various so reasons include:

1. Creation Of Revenue For The State

As the business thrives, so those a nation economy thrives, by creating this different business these Entrepreneurs makes use of their resources and most times their capital to start these ventures without anything from the Government.

They do this to provide some essential service and products to the populace and then pays tax to the Government depending on the amount of income they make, through tax.

Let’s take, for instance, Facebook, and these various other Social media platforms, the Government did not have anything to do with it.

These applications were created by Entrepreneurs in other to provide some services to the populace, and then they pay tax to the Government, and through the money, they pay as tax, the Government uses it to develop their nation and provide some amenities for them through it which all leads to the economic development of a Country.

This also helps to assemble and adequately distribute public wealth and allows everybody to benefit from it through the achievement of the entrepreneurs.

2. Creation Of Jobs In A Country

Entrepreneurs first of all mean Job creation, they don’t seek for employment, they create work, as you create a business it shows that the population of people that need job has reduced by one, and as the Entrepreneur begins to create opportunities for other people.

In essence greatly helping the economic development of a country, many countries around the globe that have begun to realize the vast advantages that involve in Entrepreneurship have started to find a way to make things easier for them to thrive in and also provide an excellent stable market them, due to the fact that they are helping the Government to tackle unemployment in the country.

They create substantial loans for start-up business to use and manage their business and lead to its growth.

3. Immense Development In The Country

By setting up new business, in various regions and units of a country, they further move towards the development of that area as they will begin to attract more people and customers in that area thus the standard of living in that area will improve.

As more Entrepreneurs build schools, hospitals, shopping centres and various other essential services which will immensely lead to a positive effect of development in that locality as more jobs, are being created and other basic amenities added to them.

4. Improved Standard Of Living

The whole essence of Entrepreneurship lies on the improvement of the standard of living if everybody, as it is also the aim of economic development.

As stated earlier as Entrepreneurs build it start up their business at a locality and begin to massively employ people to start to work for them from that locality then once the person or group of people begins to receive their salary, the standard of living in that locality improves rapidly.

5. Increase In PCI (Per Capita Income)

Most countries and states that hugely depend on Entrepreneurship to boost their economy and whereby the Government provides adequate polices in fa out of them, they have a much higher GDP than the rest of the Countries.

The reason is that the money being generated from these ventures is not fixated.

Rather it grows and grows with no measure meanwhile the one being owned by the Government does not enjoy this kind of attributes, and in most cases, the bureaucratic nature of handling those government-owned enterprises leads to its death and lack of growth, which in Entrepreneurshipdecision making is very fast and efficient.

6. International Export Trade

The main target of every Entrepreneur is for their business to grow rapidly, and for them to be able to export that product or service to other countries or states and to for it to be able to compete in the foreign market.

For a country to be stable and have substantial economic development, its exports and activities in the International market are measured and gauged.

The high rate of exports you do will hugely increase the inflow of wealth to your country and also allows you access to acquire the very best of products and technologies from other various states through the form of exchange or trade by barter.

Due to the fact that they won’t be able to compete here, most Governments of the world are rapidly improving their Entrepreneurship sector giving out loans and also providing enough facilities and good policies which will provide for a well stable ground for new business opportunities to start up.


For a Country to boast of great development in their economy, it all lies on the performance of their Entrepreneurs.

It depends on whether or not their business is thriving in the community.

Are the Government making good policies that will help them grow?

Are there several load opportunities created by the Government to help these entrepreneurs to grow their business?

Are the Government proving basic amenities which will lead to the thrive of these new businesses, started by promising Entrepreneurs?

How is the education of the country structured?

Does it help to improve the intelligence of the citizens, or does it reduce it?

These are the areas that need to be touched for a country to have great economic development.

The Government should find a way to create a good environment which will make this little business to thrive in.

Technology has quickly become the order of the day, and through it, everything has become much easier.

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