Why Entrepreneurship is Important in Recent Times in the World
Why Entrepreneurship is Important

Why Entrepreneurship is Important in Recent Times in the World

“The entrepreneur is essentially a visualizer, He can visualize something, and when he visualizes it he sees exactly how to make it happen.”

The word “Entrepreneur” seems to be thrown around everywhere for everyone doing anything. Entrepreneurs pop up in all types of industries and can have widely different backgrounds. Some build personal brands, while others work tirelessly on a physical product that they believe in. Anyone can be an Entrepreneur given an idea and the right tools to develop it into a functional business. Several people define Entrepreneurship with buzzwords like “trailblazing”, “innovation”, “problem-solving”, “passionate” and on and on! These might all be traits that entrepreneurs can strive for.

Why Entrepreneurship is Important

Entrepreneurship is an elusive concept to pin down. The Harvard Business School defines entrepreneurship as “The pursuit of opportunity beyond resources controlled”. At its core, an Entrepreneur is someone who sees a need and takes on the financial risk to start a business to fill that need. An Entrepreneur pursues his dream with relentless efforts in a sense of urgency. He dreams to bring to life an innovative, better, or cheaper product or service.  

It’s clear that Entrepreneurs come in all flavours. According to the Global Entrepreneurship Monitor, over 100 million businesses are launched every year. That is 11,000 per hour or 3 new businesses per second. 

Core Skills essential for an Entrepreneur:

  • A keen understanding of Accounting & Financial Statements
  • Art of investment 
  • An insight into Market dynamics
  • Understanding of The law.

There has been a shift in the global job market that has opened the door for entrepreneurship to become more mainstream. Specifically, the size of the Gig economy!  Contract work, called gigging, is becoming more popular and taking up more of the labour market. This shift has made it financially easier for entrepreneurs to find people to get their businesses going, without committing long-term to pay employees.  

In a nutshell, anyone who has the will and determination to start a new company and deals with all the risks that go with it can become an Entrepreneur. People choose to become entrepreneurs for a variety of reasons, but there are a few primary motivators that nearly half of all entrepreneurs cite as being a major factor in their decision to launch a business.

Why is the Youth Inclined Towards Entrepreneurship?  

Youth have always been taken as the most fundamental component of any nation’s population. Youth are necessarily the backbone of a nation who through their energy and passion brings out the dramatic alterations in a nation and the way it functions. Youth being energetic, artistic, innovative, enthusiastic and dynamic in nature constitute the most crucial part of the population. The strong ardor, motivation and longing to achieve something make young individuals the dearest human resource for fostering social, economic and political development of any nation.

One idea has the competency to give a person the precious gift of identity. Though not explored to its fullest yet, a huge proportion of the youth population is driven by entrepreneurship and is considered as a feasible and more reliable career option as against paid employment. They see entrepreneurship as a means to achieve their goals and gain a sense of accomplishment. It has become a new way to achieve what one is capable of. Moreover, the zeal to do something new and be one’s own boss makes it a perfect option for young individuals. 

The youth of today is much more entrepreneurial and aspiring than it used to be years back. Youth has risen above what society says making something out of themselves.  What the nation is witnessing is a kind of youth-driven growth, characterized by radical ideas and strategies originating out of young creative minds. Youth entrepreneurship serves as a course of molding ideas into opportunities and then opportunities into practicable ventures using their management, planning, improving, mentoring and awareness building skills.

Although Youth Entrepreneurship includes many sacrifices and challenges, it can be rewarding both, financially and personally. The youth founder/CEO of a successful startup may earn a lucrative annual income, combining a salary and dividends.

Importance of Entrepreneurship in recent times

An entrepreneur is someone who has the wisdom to explore untested waters facing all the consequences in the expectation of earning some returns. Entrepreneurship is considered a key driver of economic growth, success and affluence. The benefits of entrepreneurship include social and economic growth and individual fulfillment in terms of self-recognition. Entrepreneurs are frequently thought of as national assets to be cultivated, motivated, and remunerated to the greatest possible extent. Entrepreneurship is thus important for a number of reasons, from promoting social change to driving innovation:

Innovative Minds:

It all starts with an idea! Creativity leads to innovation and that innovation leads to Entrepreneurship. It’s kind of a relentless discipline-based approach to creativity. Innovation is the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or a different service. In the highly competitive world that we live in, innovative ideas are what will separate you from the rest. Innovation doesn’t always mean creating something new – innovators often take something that already exists, improves it, changes it, makes it better and make it the best for their customers.

It’s clear that innovation and entrepreneurship are closely linked; sometimes the terms are even used interchangeably. But, as two distinct yet interrelated concepts, it can be tricky to pinpoint the exact relationship between them. Innovation is frightening at times, and it can be messy. Roll up your sleeves and find new ways to solve problems. Think outside of the box and prove to the world that you’re here to stay.

Employment opportunities:

Entrepreneurs are the lifeblood of our economy, the source of all net new jobs. Small businesses are often appraised as the backbone of an economy. Entrepreneurs are by nature and definition job creators, as opposed to job seekers. As a thriving business grows so do the opportunities for others and the cumulative impact of new start-ups in a particular geographical area will go a long way towards cutting queues at the job center.

This facilitates economic benefits – employees with money in their pockets will naturally spend them on local goods and services. It also helps to push societies forward too: it is well documented that unemployment causes crime, poverty and a gamut of physical and mental illnesses; adding further strain to already stretched health services.

Starting new ventures inevitably means the requirement of various resources including the very valuable human resource to get the work done. This is a major contribution that an employer can make to provide income to an employee who can meet his or her needs.

Social effect:

As an entrepreneur or a small business owner, you may think that you are working hard to build your business and earn for yourself and your family. But actually, you are contributing a lot to your society, region, and the country as a whole. An entrepreneur is a great resource as an individual and likely to have created a product or service with a substantial customer base and business profitability. They naturally have a good amount of intelligence, insight, and innovation to offer in society.

They spend part of their income in the development of education for poor children. They invest in growing natural resources. They inspire young people to become responsible for their duty towards the nation. They participate in government initiatives in educational and national development directly or indirectly. 

Through offering unique goods and services, entrepreneurs break away from tradition and reduce dependence on discarded systems and technologies. This results in an improved quality of life, improved morale and integrity, and greater economic freedom.

Creating an impact on life:

 The experience of being an entrepreneur changes you, fundamentally, from the way you think to the way you act and the way you want to live your life. Most of the time, it’s for the better, and occasionally for the worse, but entrepreneurship will change your life. A budding founder can begin preparing by developing common entrepreneurial traits like grit, determination, and a tolerance for failure.

A perception of How entrepreneurship can change your life :

  • You become passionate about working
  • You see the potential in everyone
  • You wish to meet new people more than ever
  • Everything becomes a productivity challenge
  • You see a pattern in Chaos
  • You construct your own routines
  • You challenge the status quo
  • You try to innovate everywhere 
  • You learn to respect anybody that works hard at anything
  • You are more confident in your abilities

If you want to get more out of life for yourself – and others – an entrepreneurial approach is the most powerful, purposeful course of action.

Reviving An economy:

Entrepreneurial ventures help generate new wealth. New and improved products, services or technology from entrepreneurs enable new markets to be developed and new wealth to be created. In layman’s terms, an economy can be defined as a general area of production, distribution, trade and consumption. It follows a simple rule of demand and supply. Most of the countries in the world start to contribute to economic sectors especially in Entrepreneurship as it does not only provide opportunities and income but also changes and development towards the country especially developing countries.

An insight into Why entrepreneurship is important in Reviving Economy:

  • Brand New businesses
  • Reducing economic gaps
  • Opportunities for Social and Economic mobility
  • Competitive advantages for existing businesses
  • Contribution to the GDP
  • Foreign Exchange Earnings
  • Eradicating poverty/ New jobs

In light of the above points, it is clear that an entrepreneur is a huge asset for a country and the functioning and reshaping of an economy greatly depends on the existence of entrepreneurship.

Change Makers Attitude:

Entrepreneurship is not just a technical process of venture launch. Rather, it is a mindset and a set of skills that foster the pursuit of innovation in business, personal and social contexts. We now live in an ever-changing world that demands everyone to be able to contribute to and adapt to change, i.e., to be a changemaker, to be able to participate and contribute. 

For Entrepreneurs – Change is Life! When people start talking passionately about the issues, what ends up happening is there’s energy in the room. We could feel the palpable energy when we start discussing issues that matter to us. Renowned Buckminster Fuller once said “ You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete”. 

The profound transformation is taking place because the ‘everyone a changemaker’ world is a dramatically better world. With Entrepreneurs being a collaborating changemaker, there is no way the problems can continue to outrun solutions. 

Promotes Research and Development:

Along with producing new business ideas and thinking out of the box, entrepreneurs also promote Research and Development. They nurture their ideas, shape them to a new form, channelize them and turn them into a successful business endeavor. Entrepreneurs are special kinds of people, who always strive to discover new ideas and refine existing ones.

Research and development (R&D) is a vital tool for growing and improving your business. R&D involves researching your market and your customer needs and developing new and improved products and services to fit these needs. Businesses that have an R&D strategy have a greater chance of success than businesses that don’t. An R&D strategy can lead to innovation and increased productivity and can enhance your business’s competitive advantage.

For entrepreneurs, Research and Development activities are essential by essence as they embody the overall process leading to innovation.

Community Development:

Community-based entrepreneurship is considered to be an important instrument for the realization of potential among marginal and deprived communities isolated from the mainstream economy and is important in bringing social upliftment. The community-based entrepreneurship has evolved due to the efforts of committed individuals to promote self-employment.

Entrepreneurs regularly nurture ventures by other like-minded individuals. They also invest in community projects and provide financial support to local charities. This enables further development beyond their own ventures.

Entrepreneurship holds a secret weapon against apathy and anger. It presents an ace in the hole for anyone who wants to build a community. Entrepreneurs are inveterate optimists! They usually don’t know what they can’t do. This optimism, this belief in the possible, is a remarkably potent resource for building community.

In addition to all the positive aspects of having your own business, entrepreneurship plays a big role in economic development and thus, the importance of entrepreneurship cannot be undermined. Their unconventional, creative approach to the business and the innovations that have become an inseparable part of modern society, not only made our everyday life easier, they became a source of motivation and inspiration for people all over the world.

Related – 12 Characteristics of Entrepreneur You Must Have

Also Read – 30 Startup Mistakes That Aspiring and Budding Entrepreneurs Must Avoid

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