Taking a bird’s eye view of a country, its economy is based on four major sectors namely,
- Primary: A sector that focuses on the extraction of raw materials viz. farming, fishing, etc.
- Secondary: A sector whose major activity is the production of finished goods from raw materials viz. construction, manufacturing, power generation, etc.
- Tertiary: Also known as the service sector, which primarily focuses on providing service to the consumers viz. retail, banking, real estate, etc.
- Quaternary: Focusing on education, learning, research, and development.
All sectors mentioned above might look different and independent on-page, but the fact is they are interdependent on each other. All of which contribute their respective percentage to the country’s economy. The person who makes efforts to establish a certain connection between all the economic sectors of a country is an entrepreneur.
All businesses begin on a small scale, whether it be a consumer-service company, production company, or any of the other. As YoY (Year on Year) a small-scale company struggles to generate revenue, it is a major role that an entrepreneur plays through his decisions to make a venture prosper every year compared to its peer companies in the respective sector. An entrepreneur through his innovative mind has the ability to bring a revolutionary change in peoples’ lifestyles, working environment, and how everyday work can be done in the most optimal way possible. An entrepreneur serves as a catalyst in a country’s economic growth and industrialization.
As an entrepreneur, it is his/her responsibility to come up with certain ideas and innovation which can be useful and can bring a cascading effect in society.
“The rate of economic progress of a nation depends upon its rate of innovation which in turn depends on the rate of increase in the number of entrepreneurs.”
-J.A. Schumpeter (Austrian economist)
Entrepreneur plays an important role in the economic development of a country. Let’s see how.
Creating employment opportunities
As soon as an entrepreneur makes efforts to bring his idea into realization, he/she tries to engage more people into his/her venture to bring more productivity hence, resulting in the creation of more employment opportunities for people. A product manufacturing or a service providing company needs more manual labor, a tech company needs more people to handle its overall functionality, etc. Moreover, commonly, every enterprise needs a functional support platform for its customers, which adds up the job opportunities for low-skilled, medium-skilled, and highly-skilled individuals.
To reduce the overall expenditure, an entrepreneur tries to set up his/her production industry in a place where,
- The market for selling finished goods is at a minimum distance.
- Cost of establishment of infrastructure in minimum.
- Daily wage labor is available.
- The security of assets is ensured.
The best place to set up an industry taking all the above points into consideration is the area in the outskirts of a big city or a market place. By setting up a factory in such area, all the above mention points are ensured to a great extent. So, the development of the respective region is given a boost viz. creation of jobs, construction of roads, railway, ports etc which overall contributions in the regions’ economy. Looking at these developments of local people and area, a good government also encourages entrepreneurs, foreseeing the development of the country. For example, the government of India has come up with policies that stimulate MSME sectors.
By employing people into a venture, not only an entrepreneur is giving financial independence to the employees but he/she is also giving financial independence to himself/herself and also to the whole nation. The whole nation is getting products and services from a person who is not only decreasing unemployment but also providing some financial aid in the country’s economy.
So, basically every day is a high time for an entrepreneur to get forward, think innovative, solve everyday problems, change lifestyles and much more! So, build up an entrepreneurial mindset and change the future for better!