The Role of Entrepreneurship in the Economy and National Development
The Role of Entrepreneurship in the National Economy
The Role of Entrepreneurs in the Economy and National Development - Entrepreneurs play an external or internal role. Externally, the entrepreneur acts as a provider of employment for job seekers. With the employment of existing employment opportunities, which have been provided by entrepreneurs, the national unemployment rate will be even less.
And internally the entrepreneur in reducing the level of dependence on others, can increase self-confidence, and increase purchasing power to the culprit.
With the decline in the unemployment rate can have a positive impact on the increase in income per capita and people's purchasing power, and the growth of the national economy. In addition, the growth of the per capita economy can impact the fall in crime that is usually caused by high unemployment.
Entrepreneurs have a very high role in doing entrepreneurship. The role of entrepreneurs in the country's economy, namely:
Creating jobs
Reducing unemployment
Increase community income
Combine the factors of production (nature, labor, capital and expertise)
Increase national productivity
national economy
The role of the entrepreneur in developing the national economy
Economic development is a process that causes the income per capita of the community to increase. Factors that influence economic development in developing countries. The goal in economic development is to increase national income and productivity. Factors that influence this in developing countries are:
Capital
Available manpower
Real natural resources (natural resources)
Technology and entrepreneurship
Socio-cultural characteristics of the community
The breadth of the market
The economic system used.
The labor and capital factor is an input which directly influences the amount of output. While the last five factors are inputs which indirectly affect the amount of output through capital gains.
Entrepreneurship can be interpreted as the concept of the ability to create something new and different to produce added value but by having the courage to face risks or uncertainties. Things that encourage attention to entrepreneurship, because research in various countries that have developed innovations and job opportunities related to establishing small and medium-sized businesses commonly called venture ventures.
Attention to entrepreneurs, namely as a creator of new job opportunities, new innovations, new income, new tax payments, all of which are referred to as sources of economic growth have also spread to developing countries.
In the development of developing countries where the development of entrepreneurs is still in the initial stages which have become obstacles in the country's economic growth. The status of development only requires the formation of capital (from within and outside the country) and also requires the formation of new entrepreneurs.