The role of entrepreneurship in Society

- Entrepreneurship is the capacity and willingness to develop and participate in a business

venture with the intention of making a profit regardless of the financial risks involved.
The role of entrepreneurship in any economy is critical, as it contributes to the socio-
economic development of societies in various ways.

These are the Entrepreneurs Goals for the Society:

1. Identifying existing opportunities in the market - Through production and distribution

of goods and services, entrepreneurial ventures seek to satisfy client needs and improve
livelihoods. Constant market research provides insights into existing customer needs
that inform decisions to provide goods and services. An example is Jumia Kenya which
noticed a gap in the distribution of goods through online platforms and exploited this
opportunity, giving rise to a very vibrant online business platform.

2. Creating employment opportunities – Entrepreneurship helps bridge the

unemployment gap through formal and informal business ventures that employ millions.

3. Contributing to national income – Through payment of taxes, businesses contribute to

government revenue that consequently facilitates development. Entrepreneurial
ventures further contribute to the GDP, an indication of their importance in raising
revenue and financing government projects, as well as contributing to economic growth.

4. Infrastructural Development – Entrepreneurial ventures open infrastructural

development in their localities. Starting up businesses often leads to the development of
transport and communication networks, driven by the need for infrastructure created by
these businesses. Companies like Keroche and Dominion farms opened their localities,
enabling thriving businesses to take root, taking advantage of the good transport and
communication channels available.

5. Contributing to Community Development – Through participation in Corporate Social

Responsibility, entrepreneurs contribute to and support the development of
infrastructure for education, healthcare, business training & mentorship and other social
needs.
Entrepreneurs plays a major role in the development of a society. Another set of roles are also
placed upon them:

Entrepreneurs Are Innovators

Technology is quickly changing the fabric of every nation’s workforce. Old, blue-collar
manufacturing jobs are reducing, and other occupations don’t exist anymore. For example,
telephone switchboard operators, movie film projectionists or elevator attendants.

Entrepreneurs observe such changes and step in to fill the voids. They also observe the negative
consequences and the losses of some occupations caused by technology. However, they sense
opportunities in the new landscape. Thus, entrepreneurs innovate. They make new products
and services with advances in technology that create possibilities.

The best example is Steve Jobs. He knew everyone liked music, and he suspected people would
like to have their collection to carry everywhere. Therefore, there was some innovation in the
iPod. Apple sold millions of iPods and was to develop more related products.

Entrepreneurs Create Jobs

As entrepreneurs initiate new businesses, they need to recruit employees. These new
companies become engines of job creation. According to the Small Business Administration,
small companies have created 65% of new jobs since the recession.

Entrepreneurs make entirely new industries and opportunities for employment. Let’s say a
football coach in Nebraska. It was noticed that young athletes received their coaching when
they were on the practice field; however, after they left, they got absolutely nothing. So, he did
a business that collected videos for sports training and put them on a website.

Hence now aspiring athletes can get professional instructions and practice anytime and
anywhere at their convenience. This company now has more than 450 employees in the United
States of America and six other foreign countries. None of these jobs existed before this coach
in Nebraska started its business.

Entrepreneurs Raise Standards of Living

Entrepreneurship is a procedure. Entrepreneurs observe a need in the marketplace and use
their innovative talents to search for a solution. They start a new business and recruit
employees. The workers earn a salary, which they spend in the local economy. All of this creates
wealth for the population and raises the standard of living for anyone involved.

Studies from economists show that productivity increases improve the standard of living for a
population. The procedure of entrepreneurship leads to more productivity. Innovation applies
more efficient technologies to make something new, innovative or improved. It finds more ideal
ways of doing something.

As a result, employees become more efficient. Profits go up, and costs go down. Incomes rise,
and demand increases. In conclusion, the economy gets stronger, creating many jobs.

Entrepreneurship makes Economic Growth.

It is important to know how entrepreneurs contribute to the economy.

Starting with new businesses generating wealth for the population, new markets add wealth to
the economy when entrepreneurs invest their own money to make innovative products and
services. Lenders and other investors contribute more capital to the new ventures to give more
funds at work.

Businesses pay taxes on their profit, and later employees pay taxes on their salary. The
government takes this income and spends it to stimulate the economy.

The gross domestic product is a measure of a country’s economic status and improvement. A
strong economy increases the gross domestic product per capita of the country. Improving gross
domestic product is a very important goal for economic development because everyone is
becoming more productive and earning more money.

Entrepreneurs Change the Community

Entrepreneurs play an important role in the community.

A business initiated by an entrepreneur makes a big impact on the local community. The new
company creates more employment by hiring employees who spend their income in local
stores, doing more business for those owners. The success of one business makes the progress
of other organizations.

Let’s say the new business needs well qualified, educated employees with specific skills. A
community may respond by creating technical training schools and intern programs that give
these workers. Everyone profits. The company gets the workers it wants, and the community
gets a more qualified, educated population with higher incomes.

Socio-economic Benefits from Entrepreneurship

1. Promotes self-help and employment
2. Mobilizes Capital
3. Provides taxes to the country
 4. Empower individuals
5. Enhance national identity and pride
6. Enhance competitive consciousness
7. Improves Quality of life
8. Enhances equitable distribution of income and wealth

Business Ethics
- Are the standards for morally right and wrong conduct in business. Business ethics
enhances the law by outlining acceptable behaviors beyond government control.
Entrepreneurs should be able to combine the need to earn profits and being able to
provide honest and fair services to his/her customers.

Social Responsibility of Entrepreneurship

1. Social Responsibility to Consumers – There are consumer rights as well as human rights.
Consumers are weak in defending their rights against capitalist exploitation.
2. Social Responsibility to the Community – As entrepreneurs, it is their responsibility to
address problems that has irreversible effects to the community and environment.
3. Employment – Businesses should be able to provide equal opportunities for
employment. Competence should be the main basis for hiring.
4. Education and Training – Education is one of the most important assets for an individual,
especially the ones who own big and successful companies.
5. Community Development – When entrepreneurs and businessmen need to work
together to improve living conditions in that community.