Role, Importance and Contributions of Entrepreneurship in Society
What do entrepreneurs contribute to society? What is the importance of entrepreneurship for jobs, people and a better living?
The activities of entrepreneurs have transformed society immensely through an intricate organization of the labor of production which has today given birth to labor systems, factories, businesses, conglomerates and the likes.
Thus, the benefits of entrepreneurship to society cannot be exhausted as its effects have been far-reaching in every ramification.
How Entrepreneurs Contribute to Society
This article focuses on the benefits of entrepreneurship to the society and seeks to highlight the benefits derived by the society. It is strongly believed that at the end of this article, a good understanding of how the society is impacted positively through the activities of entrepreneurs will be achieved.
Some of the benefits of entrepreneurship to the society include the following;
The Role of Entrepreneurship in the Economy and the Society Development
Competition
How? You may ask. Because entrepreneurship aims at developing and providing products and services to society in exchange for profits, the society benefits from competition which naturally arises among entrepreneurs. Because businesses will want to have an edge over their competitors, innovative services are developed which are cost effective.
These leave customers/clients spoilt for choice as they become consumer kings, having a variety of options to choose from.
This generally leads to the availability of cheaper, yet high quality products and services offered by the entrepreneurs. This is a far cry from a situation where there is no competition.
In such circumstances members of society have to endure the situation as they would typically pay higher to benefit from the products/service of entrepreneurs.
Income Stream
A benefit of entrepreneurship to the society is that it generates income streams for members of society. People are able to exchange their labor power and skill for wages or salary. This leads to increased welfare in the society.
Without an income stream, there would be little to no circulation of economic benefits within the society. However, when there is a steady income stream for members of society, it creates a win-win situation as members of society have to spend to purchase certain services or products.
The chain created by an income stream leads to the creation of additional entrepreneurial ventures. Thus, the benefit of entrepreneurship to the society creates an unbroken chain of benefits accruable to members of society as well as the entrepreneurs who own such business ventures.
Oils the Wheel of Governance
If there is any outstanding feature of entrepreneurship that has not been mentioned, it is the benefits derived from its activities by governments the world over. Social amenities are provided through the taxation of all entrepreneurial ventures which include companies, businesses and the likes. This is known commonly as taxes. Governments tax individuals and businesses to generate income for providing basic services to its populace.
Without entrepreneurship, providing the basic needs required for the smooth running of society will become only a mirage. Therefore, the benefit of entrepreneurship to the society is far-reaching through its feature of enabling the successful running of governments.
Expanding the Frontiers of Knowledge
An important benefit of entrepreneurship to the society is that it inspires the expansion of the frontiers of knowledge.
Businesses think outside the box to develop unique services and products never witnessed by the human race. It fuels innovation and discovery. Today, there are several evidences of this all around us. The computer is good example of this. It was developed, and marketed to people as a necessity they would need in future.
This has become a reality, as the world is now a global village through advancements in technology spearheaded by entrepreneurship.
Creating Time Consciousness
A benefit of entrepreneurship to the society is that it has brought about the development of time consciousness among members of society.
A popular phrase has been developed from this benefit; “time is money.” Society is now time conscious leading to the development of an efficient strategy of time management that has led to increased productivity through its efficient use.
Today, companies and businesses around the world pay their workforce based on the time put in to work. The hourly payment strategy has enhanced productivity, leading to the more dedication by workers who in some situations commit more time to attract higher pay.
The Choice Option
This is a key benefit of entrepreneurship to the society as members of society have increasingly become selective of their work preferences, products they buy and even going as far as placing orders for custom tailored services. This benefit is immense and continues to drive the activities of entrepreneurs as they continue to innovate ways of providing more options for the benefit of their clients.
Today, a person can decide to offer his labor to any entrepreneur of his own choosing.
Corporate Social Responsibility
This is a great way entrepreneurship has benefited society. Business entities today give back to their host communities as a show of appreciation for believing in them.
Giving back to their host societies can come in many forms. In some cases, social amenities are provided, while in others, study scholarships are granted to indigent students among several other corporate social responsibility initiatives.
Paying special attention to the benefits of entrepreneurship to the society, this article has provided the various ways entrepreneurs benefit the society.
In all of the above, one thing is certain and clear; there is always a symbiotic relationship between entrepreneurship (entrepreneurs) and the society, as one always benefits the other.