What Are The Importance Of Entrepreneurship?

analytical Essay
1844 words
1844 words

1 .Introduction
Entrepreneurship is an important aspect of social, economic and community life. It can be viewed as a critical factor to economic growth as well as a way of addressing unemployment (Nolan, 2003).Entrepreneurs are people who are persistently focused on identifying opportunities, they seek to create something worthwhile while taking into account foreseeable risk and rewards associated with the efforts (Nolan, 2003). Furthermore, entrepreneurs are frequently understood to be individuals who discover market needs and establish new business to meet those identified opportunities. The following assignment will firstly discuss the types of entrepreneurship, secondly it will discuss the reasons people become entrepreneurs, and thirdly it will discuss the importance of entrepreneurship.
2. Types of entrepreneurship
Necessity Entrepreneurship and the push factors …show more content…

In this essay, the author

  • Explains that entrepreneurs are people who are persistently focused on identifying opportunities and seek to create something worthwhile while taking into account foreseeable risk and rewards associated with the efforts.
  • Explains that opportunity entrepreneurs are driven by pull factors, such as an opportunity to gain substantial financial reward or pursue their own ideas. entrepreneurs are perceived as risk takers.
  • Explains that there are various reasons, which lead people to become entrepreneurs. these factors are formed by social, political and economic conditions.
  • Opines that people with entrepreneurial aspirations find it difficult to operate within controlled environment where their ideas are subject to administrative procedures. many may decide to leave their jobs, not because they do not like taking orders or they have difficulty accepting authority.
  • Explains schumpeter's definition of entrepreneurs as innovators who implement change within markets through the carrying out of new combinations.
  • Explains that some people become entrepreneurs simply because they are motivated by money, but that does not mean that once the business is up and running it would be successful.
  • Explains that motsepe foundation's founder donates billions of their wealth to the poor as a clear indication that they are not only in business to gain financial rewards but also to develop their communities.
  • Argues that people who grow up in an entrepreneurial family are likely to become entrepreneurs. the nature versus nurture debate which existed since 1869 supports this argument.
  • Explains that entrepreneurship can impact the economy of a country in diverse ways.
  • Explains that entrepreneurs often resort to entrepreneurship for one of the following reasons: they find a market niche and have the solution to profit from such niche; they have been unable to find suitable employment or suitable means of income and use their creativity to generate an income.
  • Explains that entrepreneurs generate income by being creative and finding a market niche and employing other individuals in their business operations.
  • Explains the positive impact of entrepreneurship on the economy, which is the increasing level of competition as new entrepreneurs join the fray in existing domestic markets.
  • Opines that increased competition in an economy results in increased productivity and an increase in gross domestic product, which is indeed a benefit for the economy.
  • Explains that increased competition in the marketplace can cause saturation and as a result many entrepreneurs may be driven to seek new markets for their products and services or adapt market penetration tactics.
  • Concludes that entrepreneurs are important in our society and should be protected, nourished, encouraged, and rewarded as much as possible.
  • Argues that necessity entrepreneurship does not have a huge impact on job creation because it only caters for the financial needs of an individual.
  • Explains that entrepreneurship is a key driver of our economy, and it helps and educates people in terms of growth and realizing opportunities.

Importance of entrepreneurship
Entrepreneurship is a key driver of our economy, wealth and the majority of jobs are created through entrepreneurship, and it also helps and educates people in terms of growth and realizing opportunities (Nolan, 2003). Entrepreneurship is also seen as one of the important contributing factor to local development (Nolan, 2003).
Entrepreneurs create new businesses, and new businesses in turn create jobs, strengthening competition, and may even increase productivity through technological change. Increases in levels of entrepreneurship will result to an increase in economic growth (Nolan, 2003).Entrepreneurs by starting or setting up their businesses, will help with local development by locating less developed areas. The growth of industries and businesses in these areas leads to infrastructure improvements, such as better roads and stable electricity. Every business that is located in a less developed area will create opportunities that will improve the living conditions of people residing in that particular area (Nolan, 2003).
4.1 The Impact of Entrepreneurship on the

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