5 Ways an Entrepreneur Stimulates the Economy

Entrepreneur’s contribution to the economy is of
immense value. He or she is indispensable to the
economic growth of the country. His or her
products are valuable to the overall development
of the society. People need their products. They
simply cannot do without them.
Ours is a consumer society now. Even in the
developing countries consumerism is gaining
ground. Developed countries anyway thrive on
consumerism. Naturally, the role of an
entrepreneur is of much significance in generating
products valuable for the com forts and luxurious
living of the people of a particular country.
An economy is much dependent upon the
performance level of its entrepreneur. He or she
plays a vital role in the growth of the national
income as well as raising the per capita income
of the people.
How does an entrepreneur stimulate the
economy?
1. Investment – Then entrepreneur has to
invest in what is required for the economy.
Economic progress will much depend upon
his or her contributions. Any entrepreneur
will invest in products and services which
the people need. His or investment will
ensure a better life for the people. More
goods and services will be at their disposal.
2. Employment – An entrepreneur by setting up
various businesses and establishments is
generating employment in the economy.
People need jobs. This is a major
contribution that an employer can make to
provide income to an employee who can
meet his or her needs.
3. Diversity in products and services – An
entrepreneur can provide various types of
goods and services to the consumer. The
latter has much to choose from. A consumer
after all would like to have a good bargain,
and if his or her choices are more than he or
she can get these products or services at
reasonable rates. Also personal desires are
met if there are products and services to
choose from. A person may like a particular
type of tie and he can perhaps locate it in
his local market. His desire to purchase a
tie of his choice is thus met.
4. International trade – An entrepreneur
promotes international trade by selling his or
her products abroad. Any entrepreneur would
like a wider market. If there are more
consumers to purchase his or her products,
the higher his profits.
5. Contributes to gross national product – An
entrepreneur makes much contribution to the
national exchequer and to the national
economy as whole. The GNP of the country
is calculated based upon the total number of
products and services available in a
respective country. The more products and
services available the higher the GNP. It
indicates the economic prosperity of the
country.
The entrepreneur is essential for the economic
development of a country. The progress of a
country will depend upon his skill and talent as
well as hard work to deliver necessary goods and
services required by the citizens of his or her
country.