Every country depends on creative entrepreneurs and small businesses. I searched the internet for this topic, but I couldn’t find any reliable information, so I did a little research and wrote an article on it for you on why there is a need for entrepreneurship and small businesses.
What is The Need For the Promotion of Entrepreneurship And Small Business? The need for promoting entrepreneurship and small businesses is that it can strengthen the country’s economy. Entrepreneurs will establish new businesses, which will create jobs, so the country’s unemployment rate will go down. Young people will start earning at a young age, and women will have the opportunity to create businesses from home.
Let’s dive into details about why the promotion of entrepreneurship and small businesses are essential for the economy.
Why is Promoting Entrepreneurship And Small Businesses Important?
There are several reasons why entrepreneurship is essential, from improving the economy to enhancing people’s living standards. Entrepreneurs create small businesses, and small businesses create jobs. According to Fundera, small businesses create 1.5 million jobs annually and account for 64% of new jobs created in the United States.
Entrepreneurs are frequently thought of as national assets to be motivated to the highest possible extent. Today, the US is a world leader due to its forward-thinking innovation, research, and entrepreneurial individuals.
Entrepreneurs create new products/services; if successful, they change people’s lives drastically. These products often have a cascading effect, meaning they create new opportunities and markets.
E.g., When Apple released its first new iPhone in 2007, it opened a new market, the App Store, which led to more opportunities for other entrepreneurs.
Such entrepreneurs benefit the country’s economy to a large extent.
The wealth generated by entrepreneurs can be taxed. The more the entrepreneur is successful at the business, the more significant the tax will be. So this boosts the economy of the country. The tax money can be used on other areas of the country which are struggling, such as local hospitals, police departments, and schools.
Successful entrepreneurs also help the local community. They invest in local businesses and like-minded entrepreneurial ventures. They also help the needy by giving huge charities.
Promoting entrepreneurship among the youth has a lot more advantages. There is no age limit to being an entrepreneur. Youth can turn their ideas into successful businesses at a young age and reap the benefits for the rest of their life. Their impact on the country’s economy can be huge. Youth have the advantage of time; they can invest in one business if it fails, they still have a lot more time to invest in another business. At a young age, they are very innovative, which helps them create successful companies.
Promoting entrepreneurship among women is also beneficial. Some women can’t go to work as they have a family, so entrepreneurship can be an excellent opportunity for them to start their startup and be self-employed. This will decrease the unemployment rate of the country.
What Are The Reasons People Become Entrepreneurs?
There are quite a few reasons people become entrepreneurs. Some of the most common reasons are:
- Achievement, Challenge, and Learning:
The need to solve problems/challenges have motivated more entrepreneurs than ever. People who have a desire to create, become successful entrepreneurs. Programmers, Graphic Designers, Musicians, Artists, Chefs become entrepreneurs, to express their creativity and problem-solving skills. - Independence and Autonomy:
Independence and Autonomy are fundamental human desires. People like to set their own goals, face their own problems, and pick their own partners. And being an entrepreneur means having complete control of life in their hands. - Income Security and Financial Success:
As of Covid-19, we all witnessed how insecure corporate jobs are. The unemployment rate has peaked throughout the globe. The only people who were secure were self-employed entrepreneurs. People become entrepreneurs so they can be financially secure.
With entrepreneurship comes financial freedom, which is one of the common reasons people choose to become entrepreneurs. - Family:
9 – 5 jobs are energy-sucking jobs. We indulge in work so much that we forget about our family. Entrepreneurs, on the other hand, are self-employed, so they decide their daily activities. People become entrepreneurs so they can work from home and spend time with their loved ones. - Recognition and Status:
Entrepreneurship career is unique, and it stands out among the crowd. People desire uniqueness. With entrepreneurship comes the power of status and recognition. Therefore, it is another reason for some to go into the world of entrepreneurship. - Dissatisfaction with Current Work Arrangements:
There is always something that makes our current job a hell. It might be a bad boss, poor pay, job discrimination, forced retirement, or an irritating colleague. This dissatisfaction with current work arrangements turns into a great desire to work for our-self and be independent. - Community and Social Motivation:
One of the other reasons people become entrepreneurs is that they want to change the world; they want to improve their community by solving ongoing social problems.
What Makes an Entrepreneur Motivated to Start a Business?
Starting your own business is thrilling but requires a lot of money and patience. You have to understand you might not break even for the first few years. And there is a considerable probability of your business going to fail. According to Fundera’s report, 50% of companies fail by their fifth year.
Despite these sobering reports, countless people still start their businesses each year. Let’s understand the reasons that drive people to create their businesses.
An entrepreneur might start a business because he might feel more successful if he controls his destiny. He has the desire to get involved in all aspects of the business’s operation. The entrepreneur wants to be a part of sales, marketing, designing, engineering, and production. To be in control of everything is what makes entrepreneurs motivated to start their businesses.
Some entrepreneurs start their businesses so they can be their own boss. They are tired of the traditional 9-5 jobs, and now they want to build their empire. They want to take back charge of their lives.
Starting a business venture also means financial freedom if it takes off. Jobs don’t provide enough income, so this is another reason people come into the business to be financially secure.
The feeling of accomplishment when businesses succeed also motivates entrepreneurs to start a business to earn status and respect among their family and friends. Entrepreneurs feel they provide a valuable service to their customers, and they pride themselves on doing the best job possible. Many entrepreneurs want to feel good about themselves, so they offer back to the community by giving away huge charities. This feeling of pride is an important factor in starting a business.