Dr Padmesh Gupta, Managing Director of Oxford Business College, probes if entrepreneurship plays a vital part in creating jobs, growth and innovation

Entrepreneurship is the process of creating and running a new business venture to generate profits. It is essential in creating new jobs, fostering innovation, and driving market competition, benefiting communities and society.

Entrepreneurship extends beyond financial gain; success stems from creativity, innovation, and societal and business transformation. The real accomplishment for any entrepreneur lies in the ability to foster the rise of new visionaries and business leaders.

The benefits entrepreneurship provides to economic development are tenfold. Below are some ways in which entrepreneurship contributes to economic growth and development and its various benefits.

1. A raised standard of living

One of the most vital parts of entrepreneurship is its contribution to economic development, specifically its ability to raise the standard of living. Entrepreneurs creating new businesses and jobs allow the quality of life for both individuals and communities to improve financially.

As a result, entrepreneurship can raise employability, resulting in a buoyant competitive market and improved products and services – leading to happier consumers.

2. Creation of new jobs

Many entrepreneurial adventures can provide a significant number of new job roles. Entrepreneurs can create employment opportunities for themselves and others by starting new businesses. Whether locally or remote, this can help reduce unemployment rates and improve the overall economic wellbeing of the community.

3. Helps community development

As mentioned above, entrepreneurship is also vital in playing a critical role in community development. Entrepreneurs create new jobs and develop their community’s economic wellbeing through new businesses. This showcases an increased investment in the community, which can benefit infrastructure, services and amenities – to name a few.

Entrepreneurship can also cultivate a culture of community pride and independence, which can aid in the community’s overall development.

4. Drives market innovation

Disruptive entrepreneurship, which innovates, is the driving force behind market innovation. Entrepreneurs are crucial in today’s business world for identifying gaps in the market and coming up with solutions and innovative ideas to fill those gaps. This, in turn, not only benefits the entrepreneur but the entire economy.

An increase in competition is created through business innovation, developing new solutions, products/services and/or improving existing ones. This leads to a decline in prices and an increase in quality, which keeps costs low and benefits the overall economy.

The entrance of new startups to the market also drives innovation and competition by challenging existing entrepreneurs and businesses to improve their products and/or services (if needed), resulting in added consumer benefits.

Therefore, new startups through entrepreneurs are critical in providing new job opportunities and overall economic growth. They are fundamental to creating a diverse and active business environment and cultivating innovation and growth. Without new entrepreneurs, existing entrepreneurs and businesses may lack the same motivation to innovate as frequently and examine their current business model.

5. Provides economic independence

Lastly, when entrepreneurship is successful, it can also provide economic independence locally and worldwide. Entrepreneurs generate profit and income with new and emerging businesses that are innovative. In time, this can add to the overall financial wellbeing of their communities.

Not only can entrepreneurship provide economic independence, but it also provides an opportunity for SMEs to enter and compete in the market. As a result, this can lead to an increase in unique businesses, which creates a more diverse and stable economic community.

In summary, entrepreneurship can play a vital part in creating jobs, growth and innovation, with the above only being some of the many benefits and advantages it can bring to communities and the overall economy.