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    Benefits of Entrepreneurship

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    seth
    Entrepreneurship provides three main benefits to society: 1) it promotes economic growth through job creation and labor employment, 2) it improves productivity by producing more goods and services with fewer inputs, and 3) it fosters innovation through new technologies, products, and services. Entrepreneurs drive innovation and change by developing new and improved products that enable new markets. Successful entrepreneurs create wealth and jobs, contributing to economic growth. Their innovations can improve standards of living.

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    Benefits of Entrepreneurship

    Uploaded by

    seth
    7K views3 pages
    Entrepreneurship provides three main benefits to society: 1) it promotes economic growth through job creation and labor employment, 2) it improves productivity by producing more goods and services with fewer inputs, and 3) it fosters innovation through new technologies, products, and services. Entrepreneurs drive innovation and change by developing new and improved products that enable new markets. Successful entrepreneurs create wealth and jobs, contributing to economic growth. Their innovations can improve standards of living.

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    5. Benefits of Entrepreneurship

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    Entrepreneurship provides three main benefits to society: 1) it promotes economic growth through job creation and labor employment, 2) it improves productivity by producing more goods and services with fewer inputs, and 3) it fosters innovation through new technologies, products, and services. Entrepreneurs drive innovation and change by developing new and improved products that enable new markets. Successful entrepreneurs create wealth and jobs, contributing to economic growth. Their innovations can improve standards of living.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    7K views3 pages

    Benefits of Entrepreneurship

    Uploaded by

    seth
    Entrepreneurship provides three main benefits to society: 1) it promotes economic growth through job creation and labor employment, 2) it improves productivity by producing more goods and services with fewer inputs, and 3) it fosters innovation through new technologies, products, and services. Entrepreneurs drive innovation and change by developing new and improved products that enable new markets. Successful entrepreneurs create wealth and jobs, contributing to economic growth. Their innovations can improve standards of living.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
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    At a glance
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    The key takeaways are that entrepreneurship can improve standards of living and create wealth, drive innovation through new products and services, and too much entrepreneurship can be detrimental. Entrepreneurs also help drive economic growth and add to national income.

    New products and services created by entrepreneurs can stimulate related businesses and sectors that need to support the new venture, furthering economic growth. This was seen in the growth of the IT industry in India in the 1990s.

    For example, when a few IT companies started in India in the 1990s, it quickly expanded and many other sectors like call centers, network maintenance companies, and hardware providers benefited and flourished.

    Benefits of Entrepreneurship

    Entrepreneurship has following three benefits for society:


    1. Economic Growth:
    These provide economic upliftment of society and generate labour
    employment.

    2. Productivity Improvement:
    It helped in improving the productivity, which means the ability to
    produce more goods and services with less labour and other inputs.

    3. New technologies, products and services:


    It helps in promoting innovative technologies, products and services.

    Entrepreneurship is important for a number of reasons, from promoting


    social change to driving innovation. Entrepreneurs are frequently
    thought of as national assets to be cultivated, motivated, and
    remunerated to the greatest possible extent. In fact, some of the most
    developed nations such as the United States are world leaders due to
    their forward-thinking innovation, research, and entrepreneurial
    individuals.

    Great entrepreneurs have the ability to change the way we live and work,
    on local and national bases. If successful, their innovations may improve
    standards of living, and in addition to creating wealth with
    entrepreneurial ventures, they also create jobs and contribute to a
    growing economy. The importance of entrepreneurship is not to be
    understated.

    KEY TAKEAWAYS

     Entrepreneurship is important, as it has the ability to improve


    standards of living and create wealth, not only for the
    entrepreneurs but also for related businesses.
     Entrepreneurs also help drive change with innovation, where new
    and improved products enable new markets to be developed.
     Too much entrepreneurship (i.e., high self-employment) can be
    detrimental to economic development.
    Entrepreneurs Spur Economic Growth
    New products and services created by entrepreneurs can produce a
    cascading effect, where they stimulate related businesses or sectors that
    need to support the new venture, furthering economic development.

    For example, a few information technology companies made up the IT


    industry in India during the 1990s. The industry quickly expanded and
    many other sectors benefited from it. Businesses in associated industries
    —such as call center operations, network maintenance companies, and
    hardware providers—flourished. Education and training institutes
    nurtured a new class of IT workers who were offered better, high-paying
    jobs.1

    Similarly, future development efforts in other countries require robust


    logistics support, capital investments, and a qualified workforce. From
    the highly qualified programmer to the construction worker,
    entrepreneurship benefits a large part of the economy. In the U.S. alone,
    small businesses created 1.6 million net jobs in 2019.2

    Entrepreneurs Add to National Income


    Entrepreneurial ventures help generate new wealth. Existing businesses
    may remain confined to existing markets and may hit a limit in terms of
    income. New and improved products, services, or technology from
    entrepreneurs enable new markets to be developed and new wealth to be
    created.

    Additionally, increased employment and higher earnings contribute to


    better national income in the form of higher tax revenue and higher
    government spending. This revenue can be used by the government to
    invest in other struggling sectors and human capital. Although it may
    make a few existing players redundant, the government can soften the
    blow by redirecting surplus wealth to retrain workers.

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