3 Ways entrepreneurs improve economic development

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Entrepreneur in front of white board delivering a presentation.

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! MANCOSA offers a specialised Bachelor of Commerce in Entrepreneurship.

But let’s dig into exactly how entrepreneurial innovation fuels this kind of prosperity for a country, here are 3 contributing factors to consider when thinking about whether or not it’s worth investing in an entrepreneurship course:

1. Higher employment rates make finding a job difficult

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.

Who is the most successful entrepreneur in South Africa?

There are a number of successful entrepreneurs in the country. Those that come to mind include Elon Musk, founder of Tesla and PayPal, tech billionaire, Mark Shuttleworth and Patrice Motsepe, founder and executive chairperson of Africa Rainbow Minerals. For the full list of the most successful and influential South African-born entrepreneurs, take a look at our blog: Join the SA business trend with an entrepreneur course.

What is the role of entrepreneurship in South Africa?

The world is changing and current jobs now could be redundant in a few years’ time. The need to adapt to the latest business models and commercial trends gives entrepreneurs the opportunity to embrace the entrepreneurial landscape. The state of entrepreneurship in South Africa has improved over the past decade but more needs to be done to uplift and develop the entrepreneurial community.

Study an entrepreneurship course with MANCOSA

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. Start your entrepreneurial venture with an advantage. Study for an entrepreneurship course with an accredited Bachelor of Commerce in Entrepreneurship entrepreneurship programme. Discover more by speaking to one of our student advisors today.