You may have noticed that entrepreneurship is frequently referred to as a national asset that needs to be nurtured, motivated and even remunerated to the greatest possible extent. After all, entrepreneurs create businesses, businesses create jobs and employees with steady incomes make for great customers. A near-perfect recipe for sustainable economic growth!
But let’s dig into exactly how entrepreneurial innovation fuels this kind of prosperity for a country, here are 3 contributing factors to consider:
1. Higher employment rates
How does entrepreneurship reduce unemployment? As we’ve lightly touched on already, entrepreneurial enterprises provide citizens with paying jobs in order to operate and grow. They also provide employees with the means to further grow one’s own earning potential through training and on-the-job experience. This income (and buying power) is then used to secure necessities such as food, clothing and shelter. These are important economic activities. Paying customers in these industries creates necessary business and jobs for people that work to meet these basic needs.
2. Greater national income
Increased employment and higher earning potential contribute to a better national income in the form of consistent tax revenue to facilitate government spending. After all, some entrepreneurial ventures can also generate new wealth and even create untapped opportunities for a country. This is because existing businesses have often hit a ceiling in terms of their income potential. New and improved products, services or technology from entrepreneurial endeavours can create completely new markets for national wealth generation.
3. Stimulate regional and international trade
Entrepreneurs are now enabled by technology and established trade infrastructures. This means that those entrepreneurs who are successful enough may also begin to export goods and services to nearby regions or even internationally. These enterprises end up contributing directly to a country’s productivity and earnings through export tax and bringing in foreign trade. An increase in this kind of revenue strengthens an economy, trade relations with neighbouring countries and promotes the overall welfare of a population.
Can entrepreneurship be taught?
Is entrepreneurship an innate ability or an acquired skill? We believe the answer is both! Business skills can certainly be taught; entrepreneurial qualities like grit, iron will and risk tolerance are inborn. This means that entrepreneurship is both a talent and an acumen that can be achieved and honed through further education and training. In fact, we offer a leading entrepreneurship programme in South Africa. Find out more by speaking to one of our student advisors today.