Question.755 - Prepare a research paper on the topic - Why is Entrepreneurship Important?
Answer Below:
Why is Entrepreneurship Important? Armon Love St. Thomas University BUS 536: Entrepreneurship Professor Justin Peart January 19th, 2023 Why is Entrepreneurship Important? Entrepreneurship can be defined as the process of developing a business with a new idea in order to address a particular issue. In order to explore the definition, Entrepreneurship is when an individual utilizes limited resources and develops an idea to come up with a solution to address a particular problem with a new and innovative approach. It is one of the ways in which nations thrive to boost the economy in a downturn. When an entrepreneur establishes a venture, it tends to provide income to the business, in turn helping the nation generate new wealth. It provides a newer path for the economy over the glass ceiled businesses, in addition to opening the market demand for various possibilities, which also includes global demand, in the domestic market, establishing a new business could lead to the generation of newer employment opportunities, aiding the employment structure to thrive in terms of earnings, leading to a higher tax inflow, in the long run when a nation receives better taxes it spends on the nation's overall development. For instance, during the period from the early 1960s to the next 30 to 40 years United States economy was developing with an inflation-adjusted average rate of 3.5%, with an additional increased employment average annual rate of 2.3%, according to the reports from Stratupsusa.org, which reflects on the slowdown on the overall economy which is echoed on the labor growth pattern in terms of productivity ("Why is entrepreneurship important," n.d.). According to the economist, the growth of a nation is measured by its capability of it to produce capital with a proportional improvement in the labor market (Dollinger, 2008). A balance between the intensity of capital growth and expansion of the labor market needs to be achieved in order to have balanced growth in the economy. Entrepreneurship of a particular nation tends to help in improving the productivity of the nation. The imbalance can be seen when there is a boom in businesses in accordance with the higher rate of efficiency that can be achieved by the labor market with an increase in income; it leads to a drop in the costs of the products and services in the economy, with a boost in overall profit where the demands cycle is impacted with an expansion of the market requiring more employment (Lambing & Kuehl, 2003). The underlying notion is to state that entrepreneurship has the authority over the economic trends that challenge the existing business by expanding the market, setting a diverse competitive pattern giving more scope for the free flow of resources that includes both capital and labor. According to Robert Solow, an economist, the free flow of labor and capital towards highly productive regions depicts the higher rate of reallocative efficiency; when there is a high rate of reallocative efficiency, it implies a booming business region with improved productive trends ("Why is entrepreneurship important," n.d.). On the other hand, Entrepreneurship tends to create a holistic setting for social change to take place, such as the industrial era when the market was dominated by bigger businesses, drew in a massive number of employment towards industry-related jobs while as the nation experienced advancement, and people were exposed to exploring the freedom of entrepreneurship newer businesses began to emerge from the late 1980s to the present day, the broke the labor market and segregated them into various businesses and also created several job opportunities. According to data from the U.S. Census Bureau, that claims that the new job creation and growth that the nation witnessed from the 1980s tends to be because of the generation of new businesses. According to the Center for American Entrepreneurship, the new business acts as a job creator in disguise ("Why is entrepreneurship important," n.d.). The new businesses have the authority to alter the state's regulations since it is primarily driven by economic support, where the state's regulation could be eased to encourage the upcoming entrepreneurs to solve a particular problem; with the advent of technology, several private sectors tend to collaborate with the public to solve a particular issue that is bringing the appropriate change the society desires.? Entrepreneurship is driven by innovation which is one of the forces that has the power to impact the entire economy in terms of productivity of the market because when entrepreneurs come with new businesses, they improve the overall productivity of the market, which in turn positively impacts the material welfare of the society in accordance with the standard of living. The cycle of the economy begins when a new idea turns into a business which can be experienced after the end of the industrial era when the service sectors from some of the emerging countries flourished, which is associated with some of the dominant contributors to the economy, that led to increase in job creation. The impact was extended socially in terms of education sectors; when an entrepreneur's idea becomes a business, for instance, like how human resource management was born, people needed ideas to manage the workers and came up with educational interventions to address it, today master degrees on human resource management. Entrepreneurs have the authority to drive social change in terms of addressing a cause. Where be it well-established companies or upcoming ideas, people strive to address the social inequalities and imbalances through these businesses; people are driven by social cues in their business in order to develop a sustainable environment. For instance, an individual wanting to create an automobile that has higher power in the late early 2000s would currently consider making a car that is eco-friendly; similarly, the trends while establishing a corporate structure in the present era demand equality, be it gender-based or over cultural basis, entrepreneurs have the authority to shape the future society. References Dollinger, M. J. (2008). Entrepreneurship. Marsh Publications. Lambing, P. A., & Kuehl, C. R. (2003). Entrepreneurship. Upper Saddle River, NJ: Prentice Hall. Why is entrepreneurship important? (2019) Center for American Entrepreneurship. Available at: https://startupsusa.org/why-is-entrepreneurship-important/ (Accessed: January 19, 2023).More Articles From Business Management
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