What Is the Role of Entrepreneurs in Economic Development?

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Entrepreneurs create jobs, disperse wealth and encourage regional development. Entrepreneurs are the basis of economic development, because they create new businesses and products separate from large corporations.

Entrepreneurs are essential to economic development. Since entrepreneurs are self-employed and create new businesses, they stimulate the local economy in many ways. Their new businesses create jobs that were not there before, which reduces the unemployment rate and puts more money into circulation. Producing new goods and services also helps stimulate the flow of money. These smaller businesses keep wealth distributed much better than larger corporations.

Entrepreneurial efforts encourage local development, and the collective force of entrepreneurs has an impact on the overall economy for the country. Entrepreneurs also contribute to local and national happiness due to adding jobs and money to the economy. In addition, the act of starting something new has a significant impact on their own happiness and self-esteem. This positively impacts economic development, since people who are happy are more likely to go out and spend money. Entrepreneurs also help improve living standards with locally sourced options that offer lower prices, help form a sense of community due to the localization of the product and encourage people to seek out new types of business and work on their own.