Why Entrepreneurship Matters
Open up a dictionary and it will describe entrepreneurship as an activity that involves taking financial risks (usually setting up a business) with the hope of making a profit. Previously, this is exactly what entrepreneurship was – the term was increasingly associated with setting up a business alone. Today however, the scope of this term has broadened.
Entrepreneurship today is being described as a mindset that is committed to convert an idea into a profitable venture by creating value for and providing solutions to the market. So what makes this mindset important? There are several factors that contribute to that. Let’s take a look at them:
Entrepreneurship Brings Economic Development
Entrepreneurs are risk takers. They will jump into anything that hints at prospective profits. This means there will always be a new business starting up somewhere or another. With the start of every new business, you are looking at more jobs, more products/services, development in ancillary industries, and an overall improved consumer spending on the whole. All this combined contributes to economic development in the long run and are positive indicators of growth.
There is Constant Innovation
In order for businesses to survive, they need to constantly improve on the quality of their products and services, and sometimes even diversify into a different range of products altogether to improve their market share or venture into newer markets. This requires them to keep trying out new technology, bring in creativity, and innovative ideas to try and capture better market niches, or cut down costs in an attempt to increase their revenue channels and/or improve their profits.
It Recognizes and Values Talent
Today, more than ever, the role of entrepreneurial ventures has made a paradigm shift towards discovering, nurturing, and retaining new talent. We’ve all heard about talent management programs in different businesses. In order to compete better in the market, businesses need talented individuals with an entrepreneurial mindset – people who are creative and able to take risks with the commitment to turn every opportunity at hand into a lucrative prospect for the organization – what the economy gets in return, are more entrepreneurs with firsthand industry experience and the drive to turn their dreams into reality.
They Help the Whole Community to Grow
Yes entrepreneurship creates more jobs, which means more people are employed, and more families get to improve their standard of living. However, that is not the only way entrepreneurship contributes to community growth. Most modern entrepreneurship ventures now take specific interest in associating their brand with a social cause – you can see businesses working with cancer foundations, blood collecting drives, feeding the homeless, or providing animal shelters. While most of this is done to promote a softer side of the brand, it is the community at large that benefits the most out of it!If we steer away a little from the technical aspects of the things that make entrepreneurship matter, one can see how even the simplest form of this mindset allows people the ability to pursue their passions and consequently bring about a change in their own and other peoples’ lives. Without it, the world wouldn’t have had the privilege of the advancements science, technology, and corporate culture that we see today!