Why Is Entrepreneurship Important?

Updated: Dec 11, 2020

Entrepreneurship is an indispensable economic activity, impacting not only the lives of certain individuals, but the whole society collectively.

The following are the importance of entrepreneurship:

Wealth creation

Money and other types of tangible wealth can significantly improve one's standard of living. One of the major characteristics of successful businesses is its ability to earn profit or create wealth. It is a major driving force why people started their own businesses.

Having a lot of people within a society who are able to create wealth for themselves directly affects the economy of a country. For an instance, thriving businesses are able to deliver valuable products and services and increase tax contributions-- leading to an overall economic growth and continuous development. Hence, the importance of entrepreneurship in terms of finance is not limited on a personal level; rather, it has a national and even global significance as well.

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Employment opportunities

It is not right to think that people, in general, just resort to being self-employed because they couldn't get a job. And yes, there are actually some who belittle entrepreneurs, especially the start-ups.

This could even be more true if a person holds a professional degree and people around him disapprove of him starting his own business rather than looking for a 'real job' in the corporate world.

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Although, owning a business poses some risks, if well-planned, lead and managed, it can result to expansion of products or services. This, in turn, can lead to employment opportunities for other people as the business owner may have to delegate tasks he cannot perform.

It is also uncommon to see small start-ups to employ staff depending on their budget and nature of business. Of course, business owners need to consider efficiency of products or services delivery to ensure customer satisfaction. This, in some instances, can only be done by having more manpower.

Progress in people's quality of life

Another undeniable importance of entrepreneurship is its overall ability to improve the lives of people.

Oftentimes, the spark of idea to start a business is influenced by one's desire to solve other people's problems. He sees opportunities and uses his knowledge and skills to build products and services in exchange of money. Potential customers who are in dire need of help would then determine if those products or services are worth their hard-earned money. Entrepreneurship paves way to an easier life.

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In addition, business is also a driving force for constant research and development in many aspects of our lives. Just think about modern technologies built to efficiently meet our demands on food, healthcare, security, finance, and others. The end products of these innovations aren't usually free. They are distributed within our society through entrepreneurship.

Intangible rewards to entrepreneurs

Self-esteem/ self-actualization. A society made up of healthy individuals is more productive because these people have vigor to reach their highest potentials. And as we all know, the principle of health isn't confined to our physical well-being.

Emotional health, which includes high degree of self-esteem (reputation and sense of accomplishments/ self-worth) and self-actualization (fulfillment of one's highest potentials), can be seen among successful entrepreneurs. They tend to be happy and satisfied with life and most of the time, they are willing to give something back to their communities. They become engaged citizens toward improving the quality of life of those around them.

Entrepreneurship definitely builds something more valuable beyond wealth-- a sense of triumph, purpose and worthiness among people.

Accumulation of knowledge. Learning is a lifelong process. Entrepreneurship allows us to learn and assimilate new information and apply them not only in our business life, but also outside it-- on a personal level.

Successful businessmen/ businesswomen possess strong people skills. Dealing with others on a daily basis gives an opportunity to receive valuable life lessons that makes us stronger, wiser, and more inspired to live and succeed.

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