Many people view entrepreneurship as a risky proposition. And it can be! But without entrepreneurs, we wouldn’t have many of the products and services we take for granted today. Beyond that, entrepreneurs add a lot more value to modern life. Let’s take a look.
One of the most important things that entrepreneurs bring to the table is innovation. They are constantly coming up with new ideas and new ways of doing things. Sometimes entrepreneurs solve problems that are obvious and sometimes entrepreneurs solve problems we didn’t know we have! The modern smart phone, with all its utility is a great example of this. The land line was perfectly adequate, right up until it wasn’t, and now most of us couldn’t imagine life without a mobile phone.
Entrepreneurs also create jobs. When they start a new business, they have to hire employees to help them run it. This helps to reduce unemployment and gives people the opportunity to learn new skills and advance their careers. According to an OECD report:
- On average across OECD countries and over years, young firms account for about 20% of employment but create almost half of new jobs.
- Transformational entrepreneurs’ start-ups – on average 4% of all micro start-ups – create between 22% (the Netherlands) and 53% (France) of new jobs.
According to the Small Business Administration, small companies create 1.5 million jobs in the US annually and account for 64% of new jobs created in the United States.
The situation is similar in the EU. In 2019, the EU’s business economy was made up of 25.9 million active enterprises with more than 133 million persons employed. That same year, almost 3.5 million jobs were created from 2.6 million newly born enterprises in the EU.
Not only do entrepreneurs create jobs, but they also generate new tax revenue for governments. As they grow to become major employers, they provide even more jobs and economic stability. As a result, policymakers around the world have increasingly recognized the importance of entrepreneurs in driving economic growth. In recent years, many governments have implemented policies to encourage entrepreneurship and support the startup ecosystem.
These policies have helped to create an environment that is more conducive to entrepreneurial success. As a result, we are seeing more businesses being started and more jobs being created. This is translating into real economic growth that is benefiting communities around the world.
Does your community support entrepreneurs? Tell us in the comments about what happens where you live.
Image credit: Midjourney