KEY IMPORTANCE OF ENTREPRENEURSHIP IN A
GROWING ECONOMY LIKE INDIA
• Entrepreneurs are seen as national assets to be motivated, cultivated, and remunerated to the
greatest degree possible. Entrepreneurs develop innovative ideas that provide civilization
with a large number of products and services which change the way we work and live.
• The importance of entrepreneurship can be understood by what it does for society. The
benefits they offer are by creating job opportunities, improving standards of living, and
contributing to the overall growth of the economy (GDP).
• Today, communities across the country are struggling. Workers are worried about their jobs,
and the youth is unsure of their future with little prospects of growth. There are no clear
solutions but entrepreneurs do come as innovators taking the economy and the society to a
state of prosperity and progress.
WHO IS AN ENTREPRENEUR?
• An entrepreneur is an action-oriented and determined individual who is all set to
strive and achieve goals. They follow certain habits that not only help to keep
them healthy but also keep them effective as an entrepreneur.
• Entrepreneurship is, therefore, extremely vital for several reasons, from driving
innovation and creating jobs to promoting social change. Great entrepreneurs
have the ability to change, through their leadership in the way we live and work.
If successful, their innovations may improve standards of living, and in addition
to creating wealth with entrepreneurial ventures, they also create jobs and
contribute to a growing economy.
4. ENTREPRENEURS ARE INNOVATORS
• With the rapid growth in technology, many occupations don’t
exist anymore. For instance, remember the elevator attendant
or the movie film projectionist? Entrepreneurs keep a close
eye on these changes and take measures to fill the gaps.
• They understand the negative impact of technological
innovations and the loss of certain occupations but they also
sense newer opportunities that can be derived from this age
• Consequently, they innovate and create new products. These
new products or services need more employees in the various
fields of marketing, HR, finance, operations, etc. Innovators
observe consumer problems and find ways to address the
same. Their innovation is what creates employment.
ENTREPRENEURS CREATE JOBS
• The importance of entrepreneurship can be understood by the number of jobs that are created once entrepreneurs launch
new businesses. These establishments become the source of job creation.
• Entrepreneurs start a business in completely new domains and sectors. Take, for instance, Byju’s – The Learning App. It
provides educational content to school students in the form of videos and online tutoring.
• As of 2019, the organization has around 8,000 employees and none of these existed until the idea of an online mobile
application for providing tutoring and educational classes was started.
• Think about the development of the internet. It has made tremendous progress but it also came with its own set of
troubles like cyber attacks, where criminals are trying to steal confidential information and rob users. In response to the
consumers’ needs, a software company developed security applications that can defend and protect against attacks on
• To begin with, the idea was new and distinct but with time, competitors have emerged into the business creating an
entirely new industry of cybersecurity. This has resulted in more new jobs for trained software developers.
• Entrepreneurs significantly contribute to economic growth. The employees at their firms are seeds planted for growth.
These employees earn and spend their income on other businesses, thereby increasing job opportunities in other
businesses. This, in turn, enhances the overall quality of life for employees and the people with them.
ENTREPRENEURS IMPROVE THE STANDARD OF LIVING
• The journey of entrepreneurship is dynamic. As they see a problem
in the lives of the consumers, they use their creative thinking to
identify a solution.
• They start a new organization and create employment. When new
employees are hired, they are remunerated, and this income is spent
in the local economy. This generates an incremental wealth for the
population and results in raising the standard of living for all
• When a company launches a better product or service, competitors
need to match or withdraw themselves from the industry. Increasing
competition forces everyone to improve their efficiency and
become better at their jobs. They don’t have a choice but to be more
productive and live a higher standard of living.
ENTREPRENEURS ARE PHILANTHROPISTS
• One of the most highlighted importance of entrepreneurship is the
nature to give back to the community.
• As entrepreneurs earn for themselves and their employees, they
get involved in donations and charities.
• Infosys is a classic example of philanthropy. Infosys Foundation
supports the underprivileged sections of society in education,
destitute care, healthcare, culture, and rural development.
• Entrepreneurs donate generously to veterans’ groups, homeless
shelters, health organizations, and libraries. As a result, the entire
economy develops and flourishes. This would not have been
possible if entrepreneurs did not start new businesses and did not
offer jobs to employees.
ENTREPRENEURS INTRODUCE CHANGES IN THE
• Entrepreneurship benefits the local community and society. The new
company hires employees who earn an income to spend at local
stores. This generates more business for the store owners. When one
business grows, it contributes to the progress of another.
• Some business organizations require highly skilled individuals. This
creates a demand for schools, intern programs, and workshops that
can provide skill training. The community responds to the demand
by creating training institutes and everyone in the community
advances. The company hires the kind of individuals it requires and
the community gets highly educated and trained individuals.
• Entrepreneurs make arrangements for organizing food drives,
building houses, funding cleanups, and giving to local charities.
Some may also contribute to the upliftment of infrastructure in
society. This significantly helps in the growth and development of
ENTREPRENEURSHIP LEADS TO ECONOMIC
• Entrepreneurship is a process that starts with new
businesses making money for civilization. New industries
add economic wealth as entrepreneurs invest funds to
create new products and services. Venture
capitalists and angel investors also provide more capital
increasing the number of funds that are put into the growth
and success of the organization.
• Businesses earn profit and pay taxes; employees pay
income tax. The government utilizes this additional income
to stimulate the economy and generate better facilities. It
leads to an overall increase in the country’s gross domestic
ENTREPRENEURS SUPPORT OTHER ENTREPRENEURS
• Some entrepreneurs move on to also become mentors and consultants. This is
because they have a passion for their business and like to guide aspiring innovators
on their path to success.
• Seasoned entrepreneurs can share the common mistakes, the obstacles, the usual
challenges, and the methods to overcome the same. This allows a newbie to save on
time, which would have otherwise been spent on making mistakes out of business
immaturity. It also helps in saving money and other crucial resources.
• Entrepreneurs can advise on ways to arrange funds – like obtaining loans for
entrepreneurship. They establish local groups and communities that can interact
with each other, brainstorm ideas, discuss the hurdles of starting a business, hire
Entrepreneurs do a lot apart from just identifying and introducing innovative solutions to consumer
problems. With their work, the society is benefited in several ways such as creating employment,
increasing spending capacity, purchasing supplies from local vendors, raising the standard of living,
volunteering for charities and donations, and contributing to the prosperity of other organizations. The
importance of entrepreneurship is vast since they create engines that spearhead the economic growth
of a country like India.