Entrepreneurship is the dynamic process of creating incremental wealth and innovating things of value that have a bearing on an entrepreneur’s welfare.
It provides civilization with an enormous amount of goods and services and enhances the growth of social welfare.
The central importance of entrepreneurship is the creation of job opportunities, innovation, and improve the economy.
The man behind entrepreneurship is an action-oriented and highly motivated individual who is ready to achieve goals.
M. Kirzner (1973) observes entrepreneurs as; “ones who perceive what others have not seen and acts upon that perception.”
Thus, entrepreneurs take the economy and the society that is the whole civilization to the state of progress and prosperity.
Taking this into consideration, we can describe the significance or importance of entrepreneurship which is stated below.
Nine importance of entrepreneurship are;
- Growth of Entrepreneurship.
- Creation of job opportunities.
- Impact on community development.
- The consequence of business failure.
- Political and economic integration of outsiders.
- Spawns entrepreneurship.
- Enhances the standard of living.
- Promotes research and development.
- Growth of Entrepreneurship
Entrepreneurship the advent of new ventures, tiny ventures, to materialize the entrepreneurs’ innovative ideas.
Thus, the growth or establishment of small enterprises ii the specific contribution of entrepreneurship in every world economy.
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- Creation of job opportunities
Entrepreneurship firms contributed a large share of new jobs. It provides entry-level jobs so necessary fur training or gaining experience for unskilled workers.
Small enterprises are the only sector that generates a large portion of total employment every year.
Moreover, entrepreneurial ventures prepare and supply experienced labor to large industries.
Entrepreneurship is the incubator of innovation. Innovation creates disequilibria in the present state of order.
It goes beyond discovery and does implementation and commercialization of innovations.
“Leapfrog” innovation, research, and development are being contributed by entrepreneurship.
Thus, entrepreneurship nurses innovation that provides new ventures, products, technology, market, quality of good, etc., to the economy that increases Gross Domestic Products and standard of living.
- Impact on community development
A community is better off if its employment base is diversified among many small entrepreneurial firms.
It promotes extensive retail facilities, a higher homeownership level, fewer slums, better sanitation standards, and higher expenditure on education, recreation, and religious activities.
Thus, entrepreneurship leads to more stability and a higher quality of community life.
- The consequence of business failure
The collapse of the prominent industry almost has irresistible damage to the development of the state and the state of the economy, and the relevant persons’ financial condition.
The incumbents lost their jobs: suppliers and financial institutions face a crisis of recovery.
Customers are deprived of goods, services, and government losses taxes. This could not happen in the case of the failure of entrepreneurship.
There shall be no measurable effect upon the economy and no political repercussions too.
- Political and economic integration of outsiders
Entrepreneurship is the most effective way of integrating those who feel disposed of and alienated into the economy.
Minorities, migrants, and women are safely integrated into entrepreneurship to develop a well-composed plural society.
- Spawns entrepreneurship
Entrepreneurship is the nursing ground for new inexperienced adventurists.
It is the field where a person can start his/her idea of the venture, which may be ended up in a giant enterprise. All the large industrial ventures started as small entrepreneurial enterprises.
Therefore, entrepreneurship provides a broad spectrum of ventures and entrepreneurs in every economy. The vast open arena of entrepreneurship thus acts as an incubator to entrepreneurs.
- Enhances the standard of living
The standard of living is a concept built on an increase in the amount of consumption of various goods and services over a particular period by a household.
So it depends on the availability of diversified products in the market. Entrepreneurship provides enormous kinds of a product of various natures by their innovation.
Besides, it increases the income of the people who are employed in entrepreneurial enterprises.
That also capable employed persons to consume more goods and services. In effect, entrepreneurship enhances the standard of living of the people of a country.
- Promotes research and development
Entrepreneurship is innovation, and hence the innovated ideas of goods and services have to be tested by experimentation.
Therefore, entrepreneurship provides funds for research and development with universities and research institutions. This promotes general development, research, and development in the economy.
Entrepreneurship is the pioneering zeal that provides events in our civilization.
We are indebted to it for having prosperity in every arena of human life- economic, technological and cultural.
The above discussion, in a nutshell, enumerates the tremendous’ contributions of entrepreneurship.