How does entrepreneurship create economic growth and relationship between entrepreneurship and employment generation?
The entrepreneurial spirit detects gaps for unmet human needs via markets.
An entrepreneur cares and shares to realize a long-term economic goal and thus creates growth and employment opportunities by monetary, methodical and innovative life-style strategies. Entrepreneurship adds to economic stability, while the role of investors (buying/selling) is much more volatile, but equally necessary for the dynamic efficiency of markets.
Entrepreneurs boost economic growth by introducing innovative technologies, products, and services. Increased competition from entrepreneurs challenges existing firms to become more competitive. Entrepreneurs provide new job opportunities in the short and long term. By creating new products and services, they stimulate new employment, which ultimately results in the acceleration of economic development. The main aim of business is to earn profit and maximize its wealth, which in turn leads to increasing of GDP of country leading to economic development. This helps to ensure that entrepreneurs are successful and continue to prosper. It is frequently said that entrepreneurs have an “entrepreneurial mindset.” The entrepreneurship mindset refers to focusing on growth and supporting creativity, flexibility, and continuous innovation. Entrepreneurs locate and exploit opportunities. They convert the latent and idle resources like land, labour and capital into national income and wealth in the form of goods and services. They help increase Net National Product and Per Capita Income in the country. It is the process that either generates new wealth-producing resources or enhances the potential of existing resources to create more revenue. It creates new product lines and improves product quality, ideas, technologies and markets and usually makes life easier for both the entrepreneurs and the consumers. Entrepreneurs provide a large number of employment opportunities to the people to manage their business activities. They generate direct as well as indirect employment to the unemployed persons by setting up more and more units of production at small- and large-scale levels. Entrepreneurship has the potential to lift people out of poverty by generating employment and stimulating economic activity. Entrepreneurship also contributes to the development of local economies and helps improve the overall standard of living. From the findings and empirical evidence, the research concludes that entrepreneurship development has been able to facilitate employment generation significantly among rural dwellers in Kebbi State. Self-employed people receive payments directly from their clients whereas entrepreneurs are compensated by taking a share of the profit from the business. Business profit is derived from revenue obtained from numerous customers or clients. How entrepreneurship development does helps in generating employment yes, when a new entrepreneurship is established employment opportunities increase because a new business need employee in the business that increase employment opportunities. An entrepreneur is responsible not just for his/her work rather, for the entire organization's work. An employee is often assigned a task and is responsible to finish it on a directed time. The responsibility is lesser in comparison to an entrepreneur's responsibility.
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