RELEVANCE OF ENTREPRENURSHIP AND

ENTREPRENEURS IN ECONOMIC
DEVELOPMENT AND SOCIETY
 RELEVANCE OF
ENTREPRENEURSHIP

• Entrepreneurship has an enormous impact on the economy and in the society.

• Globally, the level of entrepreneurial activity has contributed significantly to
the national level of economic growth of many countries.
• It was Joseph Schumpeter, an Austrian-American economist, who first
articulated the importance of entrepreneurship to the economy and in the
society in 1934.
• The increase in entrepreneurial activities has also initiated changes in the
structure of business and society. Specifically, entrepreneurship has these
contributions to the economy and society:
Creates Improves
Employment the quality of life

Develops new Serves as

market role models
Role of
Entrepreneurship
Introduces and Entrepreneurs Brings social benefits
innovation in Economic To the people

Development and
Society
Generates Utilizes and mobilizes
New sources of materials Indigenous resources

Stimulates investment interest Provides more alternatives

In the new business ventures being created for consumers
 CREATES EMPLOYMENT

•When entrepreneurs put up their businesses,

they employ people who possess different
competencies and personal values to help
them operate the enterprise.
 DEVELOPS NEW MARKETS

•Entrepreneurs are opportunity-seekers,

creative, and resourceful. They seek new
buyers or customers of their products or
services. They go beyond the existing places
where their products are sold and look for
other people who will be interested.
 INTRODUCES INNOVATION

• Entrepreneurs innovate. Innovations can be something ordinary or

technological or breakthrough.
• This innovation is done for the product, service or technology towards
commercialization and generates economic wealth.
• Due to innovation, other businesses while others will open or flourish.
• Some even restructure, through merging or buying-out of firms, to
respond to the changes that are required in order to become sustainable
in the business.
 GENERATES NEW SOURCES OF
MATERIALS

• Entrepreneurs are always in constant search for

better and cheaper sources of materials they need.
• Finding new material providers helps in the
economic growth of the place.
• These could be sourced form because of the value
creation.
 STIMULATES INVESTMENT
INTEREST IN THE NEW BUSINESS
VENTURES BEING CREATED

•When entrepreneurs engage in a new business,

it stirs curiosity for other people to invest in
the business because of the benefits it offers.
•This new investment contributes to economic
growth.
 IMPROVES THE QUALITY OF LIFE

• The new products and services developed by the

entrepreneur contribute to the increase in the personal
benefit and convenience of people in society.
• The use of automatic gadgets cooking or washing clothes,
mobile phones, internet services, agricultural machines,
and many other innovations leads to a better quality of life.
 SERVES AS ROLE MODELS

• Entrepreneurs are people to be emulated by younger

generations in the community and society at large.
• The attitude, behavior, and personality traits, like
proactiveness, opportunity recognition, risk-taking,
alertness, and creativity, are some of the characteristics that
will also make them successful entrepreneurs in the future.
 BRINGS SOCIAL BENEFITS TO
THE PEOPLE

• Entrepreneurs pay taxes for every product or service sold in the

market.
• They also pay for the permits and licenses to operate their
businesses.
• The income derived from all these taxes by the government are
then used for the people, especially the poor, to have more access
to social services such as education and health.
 BRINGS SOCIAL BENEFITS TO
THE PEOPLE

• As well as improvement in infrastructure facilities, such as roads

and bridges, for faster and safer transportation of people and to
and from various destination.
 UTILIZES AND MOBILIZES
INDIGENOUS RESOURCES

• Small and medium enterprises will always look for cheaper and
local materials to supply their needs.
• They also make use of idle or unused resources to meet their
needs.
• This saves much in terms of foreign currency as local enterprises
patronize their own resources and they do not become dependent
on imported materials.
 PROVIDES MORE ALTERNATIVES
FOR CONSUMERS

• The stiff competition in the market for quality and cheaper

products and services requires the entrepreneurs to come up with
more products and services consumers can choose from.
• Entrepreneurs also become more concerned about the welfare of
their consumers, and ethical in producing and selling their
products or services, in order that consumers will prefer them over
the other enterprises selling the same.
 REFERENCE

ENTREPRENEURSHIP
BY: DIVINA M. EDRALIN