Entrepreneurs are known for introducing new things to the market. They are the inventors of new ideas and initiators who take up business ventures involving high risks. Entrepreneurship is the process of wealth creation through introducing products and services in the market that satisfy the needs of the consumer in some way. It requires a high level of creative and innovative thinking to come up with ideas that manage to cater to people’s needs.
Entrepreneurship is a tool to bring about big changes, the only challenge is to identify the opportunity and act accordingly at the right time.
The importance of entrepreneurship in Business
Establishment of business
The occurrence of a feasible idea and they want to make it a reality by using the available resources most efficiently is how most businesses come into existence. Entrepreneurship plays a key role when a person wants to set up an organization that will come up with creative solutions to the problems of the customer.
Expansion of business
When businessmen promote innovative thinking in their organizations, many new ideas come into existence, and taking up those ideas to start a new project helps to elevate the growth of the business. New employees and capital is hired to carry out new projects which result in the expansion of the firm.
Promotes competition
When a business came up with a new product or service, it pushes other firms to do better in the market to stay in the competition. As an outcome of this increased competition to attract consumers, the overall quality of goods and services provided in the market improves.
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Profit Making
It is very difficult to increase the returns if firms keep using the same method of production or keep producing the same goods and services for a long period. To increase profits, firms need to come up with better solutions. Entrepreneurship can help such businesses to improve and adopt advanced methods of production.
When firms bring new products into the market that is attractive to the consumer, they usually get higher returns. Firms also end up creating several jobs when they plan to produce something new. Thus, entrepreneurship not only helps to expand the business but also promotes economic activities in the country.
Reputation
Firms that come up with unique solutions to solve a problem in the economy enjoy a certain kind of reputation in society. Consumers tend to have loyalty to such firms that have a unique approach to their problems and can gain customers’ trust by inventing and improving. Such firms also pave the way for other businesses to come into existence. One such example is Apple, its unique devices lead to the formation of software and applications that are only compatible with the company’s products.
Entrepreneurship is vital for not only the survival of the business in the market in the long run but to stay at the top of the competition. A firm that keeps using the same methods over the years automatically falls behind in the competition. Many businesses that haven’t been able to inculcate creative thinking in their employees are struggling to exist. Entrepreneurship is important for the overall development of the economy, it promotes economic activities, creates jobs in the economy, and helps nations become self-sufficient.
