The importance of entrepreneurship lies in our reliance for innovative concepts and the need to generate wealth. Imagine this: if everyone were to sell the same thing, how would the economy react? Would it still be a viable and profitable venture?
In today’s article, we’ll dig deep and discuss the benefits of entrepreneurship to society and what venturing out as an entrepreneur can do for you.
What is the importance of entrepreneurship?
Reflect on this: what do some of the most successful business people have in common? They found a problem in society and fixed it.
Think about it. Jack Ma decided to bring together manufacturers and suppliers to make it easier for businesses to find them and reach them.
Jeff Bezos put together a marketplace that made it easy for people to shop within the comfort of their home.
But what exactly is the importance of entrepreneurship?
Entrepreneurship is different from simply starting a business because it requires innovation. You cannot be an entrepreneur if you’re simply making a profit off of other people’s hard work and ideas.
Entrepreneurship is taking something, making it better, and putting it out into the world.
Its biggest importance is creating wealth not only for the entrepreneur, but for related businesses as well.
The innovation connected with entrepreneurship opens up opportunities for relevant markets to open.
Entrepreneurship creates new business opportunities
Entrepreneurs create new opportunities for employment for people in the working sector. This creates wealth not only for the entrepreneur themself, but for those surrounding them as well.
New businesses created by entrepreneurs usually require manpower. But more than that, it also needs the help of other businesses. This not only helps with the economy, but it cultivates a culture of reliance ingrained into economics.
Take Amazon for example. Amazon not only opened up opportunities for other entrepreneurs, but they also require a workforce, supply a constant stream of shipments to couriers, utilize web providers, hire tech experts, supply products to other businesses, and more.
Entrepreneurs create a ripple effect that affects many sectors. This means more jobs, opportunities for business, and a thriving economy.
Entrepreneurs directly affect the economy
The national income is hugely determined by revenue earned through legitimate businesses established within the country. Businesses created by entrepreneurs generate new wealth. This in turn, hugely affects the national income or economy of a country.
Not only does it open opportunities for related businesses to be established - further adding to a country’s national income, but they also create job opportunities for the working sector.
The additional employment and new sources of wealth directly affect taxes and increase national revenue.
Entrepreneurs incite social change
Existing businesses are likely to have already hit the socio-economical glass roof so to say. Every business has a limit. This means existing businesses are likely to have reached their limits.
These limits include employment limits, income limits, spending limits, and tax limits among others.
Entrepreneurs not only inspire innovation in different industries by opening up opportunities for other businesses to be established and flourish.
Since entrepreneurs create innovation through social issues, they also tend to create freedom from oppressive societal norms. For example, the lack of wifi connectivity in an area will result in the inability to access work from home jobs or opportunities to sell online.
An entrepreneur who identifies this issue and sets up a business to tackle it, will have effectively given a means for society to prosper and move forward.
Entrepreneurs regularly invest in the community. You’ll see businesses engaging in local charity works, local developmental works, and sponsoring events that would have a positive impact on the community.
These ventures are not entirely focused on publicity. Entrepreneurs recognize the fact that a well-developed community will help boost their market and support like-minded ventures in the hopes of widening their audience.
Think of it this way: entrepreneurs cultivate their market. Potential clients are like crops you have to cultivate. Entrepreneurs understand this and find ways to cultivate the community to guarantee a future for their products or services.
Entrepreneurs inspire productivity
New entrepreneurial ventures inspire a more productive society. This provides new opportunities and inspiration for other entrepreneurs and businesses to set up that are either similar or are designed to complement each other from an economical point of view.
For example, new phone applications are optimized to help you add value to your life. It makes it easier and more accessible to perform certain tasks that would have otherwise seemed impossible or difficult to do using traditional methods.
Entrepreneurs encourage new innovations
Entrepreneurs may be focused on answering issues in society. This leads to a ripple effect that creates new issues that could be solved by other entrepreneurs and so on.
A single entrepreneurial venture evolves into several until eventually the community has developed enough to tackle other issues.
Think about social media applications. More and more platforms seem to keep popping up. Why do you think that is? The success of one platform inspires other entrepreneurs to look for better, more innovative ways to connect with others.
What are the benefits of entrepreneurship?
Entrepreneurship is a rewarding, yet completely tiring venture to go into. Shark Tank investor Lori Greiner even jokes that entrepreneurs are the only individuals who would work 80-hour shifts just to avoid working 40 hours under someone else.
There are certainly many difficulties to face when you are an entrepreneur. However, there are also many benefits to starting your own entrepreneurial venture. Take a look at those benefits below:
You own your time
While it may not mean you can sleep in whenever you want, it does give you the chance to sleep in when you need to.
Starting your own business requires you to put in more work, but it also gives you autonomy over deciding when you have to take a breather.
Think about it: no more clocking in at 8 am at the whims of your boss. But deciding to head to your office to steer your business in the right direction at 6 am.
You may be putting in more hours into your business, but doing what you want to do will help you feel more satisfied. Studies have shown that autonomy significantly affects a person’s productivity and happiness.
Being able to decide what you want to do instead of following orders will help you find fulfillment in your life.
You can create a career that you believe in
Investing in an entrepreneurial venture will allow you to align your beliefs with your line of work. Often in a work environment, you don’t have control over the practices that are required of you.
Having your own business makes sure you’re able to control behaviors you don’t agree with and ones that you want to align your business with.
Connecting with like-minded individuals
Entrepreneurship allows you to meet people who share your values and beliefs. If you’re entering a venture purely because of your passion, this is even more true and would inspire you even further to put more work into your business.
Entrepreneurship is not a one-man job. There are many factors that go into building a successful business. One of those factors is affected heavily by the people you align yourself with. When you make connections, your business thrives, and there are more opportunities for you to learn and prosper.
Boosts your self-confidence
Entrepreneurship is one of the most fulfilling things in life. This is even more true if you’re able to go into a venture that focuses heavily on things you are passionate about. Being an entrepreneur and seeing yourself “make it” despite the odds is one of the best feelings in the world and it does wonders for your self confidence.
Plus, one of the key qualities of a successful entrepreneur is confidence. Doing something you believe in will drive up your confidence and convince those around you that what you have is important and of value to their lives.
Why should I consider entrepreneurship?
Entrepreneurship is one of those things you shouldn't go into lightly. You will encounter a severe amount of stress, self-doubt, and countless sleepless nights trying to make it work or think of ways to handle hurdles you’ve never faced before.
However, entrepreneurship will also cause you great joy. I can confidently tell you that the stress and effort put into maintaining your business will be well worth it in the end. Seeing your business thrive, having people tell you that your business has helped them or encouraged them to go further in life is one of the most rewarding things about running your own business.
Moreover, starting your own venture will allow you to put focus on things you love. Yes, you might be overtired from days where there are too many things you need to handle. However, you will also be able to better determine how you want to spend your time.