Undeniably, gaining a thorough knowledge of doing business and developing financial resources is of significantly useful in declaring independence and economic sovereignty. This could also be verified via employing a range of means to create own business and build community ecosystems along that line.
Cognizant of the fact that coming up with a variety of industries to serve different needs highly requires a skill of being business minded and establishing entrepreneurial ecosystems in communities of color and understanding the reality of challenges faced by all walks of life. The Ethiopian Herald approached Alemayehu Tolera graduated from Civil Service University and a business administration lecture to garner professional information about the significance of entrepreneur for economic development.
He said, “Entrepreneurship drives economic growth and creates new job as it is instrumental in encouraging innovation by bringing new ideas, products, and services to the market and contributing to social change by developing products or services that reduce people’s dependence on others to be self-sufficient and even create a system to hire others.” Undeniably, entrepreneurial activity is positively correlated with economic growth as it is stated that the higher the level of entrepreneurial activity the greater rates of economic growth would be, he added.
According to Alemayehu, entrepreneurship is the expedition of creating, managing and scaling up a business by taking premeditated risks and being innovative. It also involves combining resources, skills and vision to bring forth new products, services or solutions that meet market demands as well as create value instead of wasting time waiting for others to grant us with some sort of jobs for generating income.
It is indeed, a popular scheme these days focusing on generating ideas, new venture creation and profit driven approaches. ”Whenever people would like to maintain their own current business position, or well penetrate the market, innovation is core to a sustainable and resilient business in times to come.”
Yes he said, when individuals or groups would like to sketch a framework for innovation and entrepreneurship, they have to first identify an innovation opportunity, develop and deliver a superior solution, and select a business model to deliver value for a range of stakeholders.
Here, understanding the unique issues in developing entrepreneurs both in urban and rural areas would confidently pave the way how people can do business and create a sustainable source of income. It is also important to foster communication with concerned bodies and decision-makers about the entrepreneurial step to make a difference.
Entrepreneurship has resulted in expediting a new business to exploit a perceived business opportunities that would lead to economic development, it is also possible that necessity entrepreneurship may not lead to economic development. Since all countries have some level of both opportunity and necessity entrepreneurship, people have to exploit the opportunity-to-necessity entrepreneurship as it fosters economic development.
“The potential for uptake of integration processes in stimulating economic growth through entrepreneurship is determined by the level of institutionalization in an economy. Independent companies, mergers, and acquisitions restrain economic growth and reduce its quality, while clusters, technological parks, and innovational networks accelerate the rate of economic growth and increase its quality.” In developing countries such as Ethiopia, integration processes in entrepreneurship have a different influence on economic growth and require further institutionalization.
According to Alemayehu, the role of entrepreneurship in economic development is substantial. After all, entrepreneurs don’t just build businesses and grow their personal wealth; they also impact the economy by creating new jobs and opportunities, driving innovation, and developing new markets, products, and services.
He said, “Entrepreneurship is the process of creating and running a new business venture in order to generate profits. It is a crucial factor in driving economic growth and development in both developed and developing countries. Entrepreneurial activity helps create new jobs, fosters innovation, and drives market competition, which ultimately benefits users.”
The role of entrepreneurship in economic development cannot be overstated as it contributes a lot to economic growth and overall socio-economic development. Role of entrepreneurship in economic development can also be manifested by raising the standard of living, creating new jobs, helping to eliminate poverty throughout the nation and providing economic independence, he added.
One of the most significant benefits of entrepreneurship in economic development is that it raises the standard of living. By creating new businesses and jobs, entrepreneurship improves the quality of life for both individuals and communities, enabling paths for wealth creation at national level, too.
As to Alemayehu, entrepreneurship enhances employability, which in turn drives economic competitiveness. It is a significant source of job creation and entrepreneurs create employment opportunities for themselves and others by starting new businesses. Such a viable step helps Ethiopia reduce unemployment rates and improve the overall economic well-being of the community and the country.
Entrepreneurship has enabled to eliminate poverty across the nation via creating new businesses and jobs and providing all walks of life as per their engagement with opportunities to improve their financial situation, he added.
As stated time and again, Alemayehu said entrepreneurship is quite significant as has been playing a critical role in promoting community livelihood and aggregate human development. By creating new businesses, entrepreneurs contribute to the economic vitality of their respective communities. This can lead to increased investment in all regional states, which can result in improved infrastructure, services, and conveniences.
He said entrepreneurship can also help to foster a sense of community pride and ownership, which can contribute to the overall development of the country. Besides, it provides economic independence for individuals, groups, the community and the national inhabitants at large. By creating new businesses, entrepreneurs are able to generate income and contribute to the overall economic well-being of the nation.
Here, Alemayehu said the importance of new startups cannot be overstated, since they provide new job opportunities and contribute to overall economic growth. They are essential for creating a dynamic and vibrant business environment, which fosters innovation and growth.
Entrepreneurship encourages capital investment in both rural and urban localities. By creating new businesses, entrepreneurs attract investment from both local and foreign sources. This can even unlock their ability to access different labor markets and even enter foreign markets further down the line. This move significantly contributes to the overall economic growth of the country as it potentially provides entrepreneurs and job seekers with new opportunities, he added.
Yes he added innovative entrepreneurship is the driving force behind market novelty, and entrepreneurs are known for their ability to identify gaps in the market and come up with solutions to fill them. He said, “By focusing on business innovation, such as developing new solutions, products/services, or improving existing ones, entrepreneurs increase competition, leading to a decrease in prices and an increase in quality. The cumulative effect of this trek pushes the nation steps forward, indeed!”
Furthermore, he added innovative entrepreneurs are also responsible for keeping costs low, which benefits the overall economy of the country. By introducing new and more efficient production methods, entrepreneurs are able to decrease the cost of production. This leads to an increase in supply, which in turn leads to an increase in exports. This is particularly important for developing countries that rely heavily on exports for their economic growth.
He further elucidated that entrepreneurs are expected to be responsible for the optimal use of resources. True he added entrepreneurs are able to create more efficient systems for utilizing resources by identifying new business opportunities and introducing new production techniques. This would be paramount importance in benefiting both the entrepreneurs and entire economy of the country since it leads to a decrease in waste and an increase in production as well as productivity.
In a nutshell, entrepreneurship is a key driver of economic growth and development. By creating new businesses and jobs, entrepreneurship leads to an increase in gross national product and per capita income. This is particularly important for developing countries like Ethiopia where poverty and unemployment are major issues which all the time attract hard work and well developed entrepreneurial skills to come out of the box of dependency syndrome and spirit of waiting for others to act upon our desires.
Moreover, entrepreneurship plays an important role in promoting balanced regional development by creating new businesses and job opportunities in areas that were previously underdeveloped and reducing regional disparities thereby promoting overall national development.
BY MENGESHA AMARE
THE ETHIOPIAN HERALD WEDNESDAY 16 AUGUST 2023
