Entrepreneurship and how it affects the economy
Entrepreneurship is great for the economic growth of one country. The numbers of entrepreneurs in one country have a correlation of the wealth of the country as it generates cash flow and creates jobs opportunity it also increase competition in the market. All this benefits the economy of the country and is the essence of capitalism. Entrepreneurs are responsible for a huge part of the small business sector and the small business sector is a huge industry by itself.
Entrepreneurship contributes to social wealth by creating new markets, new industries, new technology, new institutional forms, new jobs and net increases in real productivity. Increases in wealth in return will help government to supply the needs for the society for more public schools, hospitals, and develop the infrastructure.
(GEM ) An international study concluded that the correlation between the level of entrepreneurial activity and economic growth is greater than 70% and all nations with high levels of entrepreneurial activity have above-average rates of economic growth. Although all the benefits and importance of entrepreneurship are known, our school and education system seems to be down playing its importance. They are instead more focused on developing people and training them for the work force rather than creating intellects that takes risk and creates jobs.
Promoting an entrepreneurial culture should be encouraged by the world, and especially in emerging countries and third world countries.
Above is the cashflow quadrant that’s been invented by a well-known author and entrepreneur, Robert Kiyosaki, he states that there are 4 quadrants that represents the types of people in the business world. ...
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...tal for other kinds of educational
enterprises. Both public and private sources for such funds could be tapped. While it is
essential to figure out how to route more of the vast public education expenditure in this
direction, public funds may not truly fuel entrepreneurship unless routed through private
vehicles that could be nimble, risk-taking, and non-political. small business
investment companies, are one existing federally funded model.Foundation
trustees could be convened to discuss these issues and to cultivate a new generation of
trustees with a different risk profile (e.g., hedge fund investors and managers). Another
admittedly controversial idea is to change public policy to more easily enable foundations to
invest in risky ventures without publicly disclosing their involvement, thus decreasing their
downside risk and increasing their tolerance for failure.
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