All companies start as a small idea or dream that one puts into practice. Whether the company is small or big, it is the entrepreneur who decided to put the plan or that particular idea into action. Although in many cases they start their projects alone, they are not the only people who benefit when the business picks up. One of the most frequent contributions that the entrepreneurs make to society is job creation, but it is certainly not the only positive contribution that they bring to society.
It is no secret that entrepreneurs can play some roles within their society particularly when they start engaging in issues like innovation and philanthropy.
Benefits that engaging in entrepreneurship
Having said the above let us look at the benefits that engaging in entrepreneurship has brought to both an individual and the society as a whole:
This is the most visible and most important role that entrepreneurs play in society. They not only create jobs for themselves but other people in the community too. Although when starting a new business or venture they may be working with one or two employees, the numbers will increase as the company grows.
When you look at the cumulative effects that these companies cause to society, you will discover that the multiple start-ups will create a significant number of jobs. All the world over where there is a conducive environment for the development of start-ups, you will notice the positive effect when you look at the employment statistics.
These business entities not only create jobs for people within their companies, but they also bring about a positive impact to their local economies. When individuals in society are employed, the money they earn is usually spent within the domestic market or businesses. This can be in the form of purchasing clothes, spending it in departmental stores and even for others using it to set up and flourish their small business entities.
When a new company is formed within some particular place, the business develops relationships with other companies, vendors, suppliers and it also purchases goods and services from other businesses hence putting more money into that economy. It is also true that the existence of a new company in some place will encourage other people to open businesses in the same vicinity which in turn leads to the creation of new job opportunities.
Giving back to society
Besides the benefits that we have seen above, entrepreneurs contribute positively to their local communities through engaging in charitable activities. In some instances, an entrepreneur can start a business that has equal goals about charity and profit making at the same time. For example, a financial institution can start a program that aims at giving small-scale traders loans at low-interest rates. This is not only helpful to the traders but the financial system too.
Creation of new products and services
The freedom of innovation that comes with entrepreneurship leads to the creation of new goods and services that have benefits to the larger society. Some of the investments that have been brought by entrepreneurs and have had a positive impact on society include the mobiles phones, computers, and even the social media communication channel.