Entrepreneurship is the dynamic process of creating incremental wealth and innovating things of value that influence the well-being of an entrepreneur.
It provides civilization with an enormous amount of goods and services and improves the growth of social welfare.
The man behind entrepreneurship is a highly motivated, action-oriented individual who is ready to achieve the objectives.
M. KIRZNER (1973) OBSERVES ENTREPRENEURS AS; “THE ONE WHO PERCEIVES WHAT OTHERS HAVE NOT SEEN AND ACTS ON THAT PERCEPTION”.
Thus, entrepreneurs lead the economy and society that is the whole civilization to the state of progress and prosperity.
With this in mind, we can describe the meaning or importance of the entrepreneurial spirit indicated below.
9 points on the importance of the entrepreneurial initiative
- Entrepreneurship growth
- Creation of job opportunities.
- Innovation.
- Impact on community development.
- The consequence of business failure.
- Political and economic integration of foreigners.
- It engenders entrepreneurship.
- Improve the standard of living.
- It promotes research and development.
1. Growth of the entrepreneurial spirit
Undertake the arrival of a new company, particularly small companies, to materialize the innovative ideas of entrepreneurs.
Therefore, the growth or establishment of small businesses is the specific contribution of the entrepreneur spirit in all the economies of the world.
The statistics reveal that in the economy in Spain, almost half a million small businesses are established each year.
2. Creation of job opportunities.
Entrepreneurial companies contributed a large part of the new jobs.
It provides entry-level jobs, so it is necessary to train or gain experience for unskilled workers.
Small businesses are the only sector that generates a large part of total employment each year.
In addition, enterprising companies prepare and supply experienced labor to large industries.
3. Innovation
Entrepreneurship is the incubator of innovation. Innovation creates imbalances in the current state of order.
It goes beyond the discovery and makes implementation and commercialization of innovations.
The innovation, research, and development of “Leapfrog” are being contributed by the entrepreneurial spirit.
Therefore, the entrepreneurial initiative encourages innovation that provides new businesses, products, technology, market, quality of the good, etc., to the economy that increases the gross domestic products and the standard of living of the people.
4. Impact on community development.
A community is better if its employment base is diversified among many small entrepreneurial companies.
It promotes abundant commercial facilities, a higher level of homeownership, fewer marginal neighborhoods, better sanitation standards, and higher spending on education, recreation, and religious activities.
Therefore, the entrepreneurial spirit leads to greater stability and a higher quality of life in the community.
5. The consequence of business failure.
The collapse of the big industry almost has an irresistible damage for the development of the state and for the state of the economy and for the financial situation of the relevant people.
Holders lost their jobs: suppliers and financial institutions are facing a recovery crisis.
Clients are deprived of goods, services and taxes from government losses. This could not happen in case of failure of the enterprise.
There will be no measurable effect on the economy and no political repercussions.
6. The political and economic integration of outsiders.
Entrepreneurship is the most effective way to integrate those who feel disposed and alienated in the economy.
Minorities, migrants and women are securely integrated into the entrepreneurial spirit that will help develop a well-composed plural society.
7. Generates entrepreneurship.
The entrepreneurial spirit is the field of nursing for new inexperienced adventurers.
It is the field where a person can start their idea of the company, which can end up in a giant company.
All large industrial companies started as a small business enterprise.
Therefore, the entrepreneurial spirit provides a broad spectrum of companies and entrepreneurs in all economies.
The vast open arena of entrepreneurship, therefore, acts as an incubator for entrepreneurs.
8. Improve the standard of living
The standard of living is a concept based on the increasing amount of consumption of a variety of goods and services in a particular period by a household.
It depends on the availability of diversified products in the market.
The entrepreneurial spirit provides huge types of products of various natures for their innovation.
In addition, it increases the income of people who work in entrepreneurial companies.
That also employed people capable of consuming more goods and services.
In effect, the entrepreneurial spirit improves the standard of living of the people of a country.
9. Promotes research and development.
Entrepreneurship is innovation and, therefore, innovative ideas of goods and services must be tested through experimentation.
Therefore, the entrepreneurial spirit provides funds for research and development with universities and research institutions.
This promotes general development, research and development in the economy.
The entrepreneurial spirit is the pioneering zeal that provides events in our civilization.
We are indebted to her for having prosperity in all areas of human life: economic, technological and cultural.
The previous discussion, in a few words, lists the tremendous contributions of the entrepreneurial spirit.