Increasing population has increased the problem of unemployment, and the unemployed youth means the low economic development of the nation. Due to various reasons, poverty level always remains beyond the stipulated line. So, the government encourages the small and medium enterprise to eradicate the poverty.
Medium and small businesses are the spine of every nation’s economy. Government always comes with new amendment and innovative opportunities to encourage the entrepreneurship with the aim to get better economy and development. It helps the nation to remove territory immobility.
What is Entrepreneurship? Why is there the requirement of Entrepreneurs?
Starting own business rather than employing under any organization is termed as entrepreneurship. It is the self-operated work with the aim to gain profit and abide by risks. It plays a vital role in creating new jobs and helping the economy to grow.
The core of every nation is economy. When a country has not able to create new jobs, it means it is on the way to destruction. Entrepreneurs are materializing as the strength of the nation by creating jobs and maintain the balance of payment. It is beneficial to create new jobs and increase the economic growth.
How entrepreneurship generates employment?
The educated unemployed youth the problem is like a disease as it leads to sluggish economic growth. Entrepreneurship has come into view as a cure to prevent this disease. It produces the new opportunities for the young and educated youth to get jobs and reduce the rate of unemployment in the country. The entrepreneurship helps to create jobs in many ways given below.
- Creating small business
Small business is very elastic and requires a very small workforce, e.g., one to two persons can also operate them very smoothly. They are good enough to adjust the risk and uncertainties effectively than a large business. They are very flexible in nature. Even an uneducated person can run his/her business by selling food or opening stalls. One can also take debt for starting small-scale businesses from various sources.
- Creating healthy competition
Start-ups are new to the market but emerge as an excellent competitor to the big enterprises. They are new to the market and offers excellent solutions to create brand loyalty among customers. By growing in this cut-throat competition, these businesses have not only created jobs but also gives a healthy competition to their competitors.
- Jobs to educated youth
If you are a fresher, then the competition is the peak to get a job. Most of the big companies look for experienced employees, and this makes the fresh youth jobless. New ventures or start-ups come with the idea to run businesses and earn the profit by bearing small risks. These enterprises are very small and require less number of employees. They give a chance to fresher by providing fresh jobs.
Entrepreneurship creates the jobs and helps the fresh youth to work and earns for their living. It is the way to increase the economic growth of the nation. Entrepreneurs are the creator of jobs.
How does entrepreneurship help to encourage economic growth?
The economy of every country defines the development and prosperity of the nation. It is the root that nourishes the people of the country. Entrepreneurship helps to uplift the economic development of every nation. Job creation is one of the boons for the economic development. Here you can find how it helps to enhance the economic development of the nation.
- Creating job opportunities
Entrepreneurs hire the workforce to run their business activities and manage them effectively. They recruit labor and eliminate the unemployment which is the cause of the sluggishness of the economy.
- Balanced development
The rural areas are congested, poorly sanitized, congestion and polluted, the small business and start-ups help to develop the rural areas by providing employment to the poor people. It promotes the balanced development of the nation. It improves the standard of living and also promotes the economy of the nation.
- Optimum utilization of the resources
Entrepreneurship helps to drum up the small resources and utilize them properly. Most of the small businesses like shops or food stalls hire their relatives or friends that are very helpful to utilize the idle tale hidden around them.
- Promote the exports
Small and medium scale business helps the nation to maintain their balance of payments by exporting their services or products to other countries. Entrepreneurs earn good amount of foreign currency in return for exporting their business. This is helpful to reduce the nation’s pressure and enhance the economic growth.
- Satisfying consumer’s demand
Entrepreneurs create a number of products to satisfy the demand of the customers. This makes the things available in the market without any shortage. This is helpful to stabilize the inflation of the nation.
- Helps in the growth of capital market
The economic development of any country depends upon the optimum utilization of the capital. Entrepreneurs can increase their income by selling their shares and debentures to the public. This is very helpful to increase the capital market as many of the investors tend to buy IPO’s in the thought of that in future they will get good profit.
- Foreign capital inflow
Entrepreneurs attract a lot of institutions and individuals for funding in their business. This is helpful to get the foreign currency. This helps to enhance the economic growth of the country and maintain a good amount of foreign currency inflow.
A healthy economy is the life of every nation. The government always takes positive efforts to encourage the small-scale business and grow their economy. Entrepreneurs are not only helping the unemployed youth to get the job but also helps to escalate the economic profit of the nation. It improves the standard of living of the people who live below poverty line.
The Government also come up with the idea of incubation centers to encourage the IT area by proving the start-up loan to the aspiring entrepreneurs.So, start your business and earn the profit by utilizing government facilities.
Marvin Power is a freelance writer who has been writing for various blogs. he has previously covered an extensive range of topics in her posts, including business debt consolidation, Finance, Entrepreneurship and start-ups.