НИУ ВШЭ, Москва, Россия
ПОЧЕМУ ПРЕДПРИНИМАТЕЛЬСТВО ВАЖНО ДЛЯ ЭКОНОМИЧЕСКОГО РАЗВИТИЯ?
Файзуллох Сатторий Абдижаббор угли
Студент второго курса магистратуры по “Население и развитие”,
НИУ ВШЭ, Москва, Россия
Роль, которую играет предпринимательство в развитии западных стран, заставила народы развивающихся стран полностью осознать его важность в программе быстрого экономического развития. Люди начали понимать, что для достижения цели развития необходимо увеличивать как количественное, так и качественное предпринимательство в стране. Качественное предпринимательство подразумевает упор на инновации, а количественное подразумевает упор на имитацию предпринимательства. Оба они вносят свой вклад в развитие.
Ключевые слова: предпринимательство, экономическое развитие, экономический рост, национальный доход.
WHY ENTREPRENEURSHIP IS IMPORTANT TO THE ECONOMIC DEVELOPMENT?
A second-year student of Master’s Programme in Population and Development, NRU HSE, Moscow, Russia
The role played by entrepreneurship in the development of western countries has made the people of developing countries very much conscious of its importance in the programme of rapid economic development. People have begun to realize that for achieving the goal of development it is necessary to increase both the quantitative and qualitative entrepreneurship in the country. The qualitative entrepreneurship implies the stress on innovating and the quantitative implies the stress on imitating entrepreneurship. Both of them contribute stimulus for development.
Key words: entrepreneurship, economic development, economic growth, national income
Entrepreneurship is important for a number of reasons, from promoting social change to driving innovation. Entrepreneurs are frequently thought of as national assets to be cultivated, motivated, and remunerated to the greatest possible extent. In fact, some of the most developed nations such as the United States are world leaders due to their forward-thinking innovation, research, and entrepreneurial individuals.
Great entrepreneurs have the ability to change the way we live and work, on local and national bases. If successful, their innovations may improve standards of living, and in addition to creating wealth with entrepreneurial ventures, they also create jobs and contribute to a growing economy. The importance of entrepreneurship is not to be understated.
Entrepreneurs in general combine the available resources and produce goods and services. They put in a very valuable input in the form of their time and effort in organizing these resources. More often than not, they have to provide a disproportionately high quantum of these inputs (time and efforts) to produce a required product or service.
Naturally, the rewards for entrepreneurship would also be disproportionately high. Many economists have pointed out that entrepreneurship is a low cost strategy for economic development because entrepreneurs perform many crucial economic functions. For instance, they bear the costs and face the risks of starting a new enterprise, or adapting new technologies, or developing new products, or opening up new markets, etc.
They work hard to add value to their goods and services. An entrepreneur, thus, brings about frequent changes in the production process, marketing strategies, technology, etc., to improve the quality of the product or service. These changes in due course lead to better products and affect the welfare of societies.
This is a basic quality of entrepreneurship that spreads in societies like a chain reaction. Each action leads to another and entrepreneurial opportunities get created continuously resulting in active markets and intense competition.
The role played by entrepreneurship in the development of western countries has made the people of developing countries very much conscious of its importance in the programme of rapid economic development. People have begun to realize that for achieving the goal of development it is necessary to increase both the quantitative and qualitative entrepreneurship in the country. The qualitative entrepreneurship implies the stress on innovating and the quantitative implies the stress on imitating entrepreneurship. Both of them contribute stimulus for development. It is also known that even though a country has resources - labour, technology, capital and raw material etc, but these remain under-explored in the absence of the active and enthusiastic entrepreneurs, who have the ability to organize the various factors of productions (Dr. Sunday EdesiriAkiri, 2016).
Entrepreneurs Spur Economic Growth
New products and services created by entrepreneurs can produce a cascading effect, where they stimulate related businesses or sectors that need to support the new venture, furthering economic development.
For example, a few information technology companies made up the IT industry in India during the 1990s. The industry quickly expanded and many other sectors benefited from it. Businesses in associated industries—such as call center operations, network maintenance companies, and hardware providers—flourished. Education and training institutes nurtured a new class of IT workers who were offered better, high-paying jobs (Somesh. K. Mathur, 2012)
Similarly, future development efforts in other countries require robust logistics support, capital investments, and a qualified workforce. From the highly qualified programmer to the construction worker, entrepreneurship benefits a large part of the economy. In the U.S. alone, small businesses created 1.6 million net jobs in 2019 (Small Business Profile, 2020).
The Role of Entrepreneurship in Job Creation
Entrepreneurial activity drives economic growth and job creation. Over the past few decades, national and sub-national government worldwide have increasingly focused on engaging more people in the market activities with an assumption that markets play a crucial role in attaining sustained increases in living standards. A growing degree of uncertainty in the world economy-evidenced by rising unemployment levels, stalled rate of job creation, and muted economic recovery – has renewed the focus on entrepreneurial activity as a means to generate economic growth. Consequently, policymakers are paying considerable attention to the specific role of start-ups and high investment in research and development (R&D) as possible job creation strategies (Alexander S. Kritikos, 2010).
Entrepreneurs Add to National Income
Entrepreneurial ventures help generate new wealth. Existing businesses may remain confined to existing markets and may hit a limit in terms of income. New and improved products, services, or technology from entrepreneurs enable new markets to be developed and new wealth to be created.
Additionally, increased employment and higher earnings contribute to better national income in the form of higher tax revenue and higher government spending. This revenue can be used by the government to invest in other struggling sectors and human capital. Although it may make a few existing players redundant, the government can soften the blow by redirecting surplus wealth to retrain workers.
Entrepreneurs Create Social Change
Through offering unique goods and services, entrepreneurs break away from tradition and reduce dependence on obsolete systems and technologies. This can result in an improved quality of life, improved morale, and greater economic freedom.For example, the water supply in a water-scarce region will, at times, force people to stop working to collect water. This will impact their business, productivity, and income.
Entrepreneurs regularly nurture ventures by other like-minded individuals. They also invest in community projects and provide financial support to local charities. This enables further development beyond their own ventures.
Some famous entrepreneurs, such as Bill Gates, have used their money to finance good causes, from education to public health (www.gatesfoundation.org). The qualities that make one an entrepreneur can be the same qualities that help motivate entrepreneurs to pay it forward through philanthropy, in a later chapter of life.
These are just five of the many different ways entrepreneurship can help local economies and in general promote economic growth and development. Depending on the type of entrepreneurial venture we can notice more potential ways that enhance local finances.
Dr. Sunday EdesiriAkiri, (2016). Entrepreneurship and Job Creation in Nigeria. IIARD International Journal of Economics and Business Management ISSN 2489-0065 Vol. 2 No.3.
Somesh. K. Mathur, (2012). Indian Information Technology Industry: Past, Present and Future & a Tool for National Development. University of Washington.
Small Business Profile, (2020). https://cdn.advocacy.sba.gov/wp-content/uploads/2020/06/04144224/2020-Small-Business-Economic-Profile-US.pdf
Alexander S. Kritikos, (2010). Entrepreneurs and their impact on jobs and economic growth. DIW Berlin, University of Potsdam, and IZA, Germany
The Bill and Melinda Gates Foundation. “What We Do”. https://www.gatesfoundation.org/what-we-do