The entrepreneur; perhaps someone who doesn’t get as much credit as they deserve. By themselves, they create products/services and build something from absolutely nothing. However, is this entrepreneurial society we seem to be building a good thing? Today, we’re going to assess the pros and cons!
Growth in the Economy – First and foremost, it creates wealth for the whole economy from the entrepreneur to the employees. Furthermore, income and corporation tax earns money for the government and this money is then redistributed to the communities in need. With the more skilled entrepreneurs, they can change an industry with their invention and this also benefits the customers. If the service allows people to earn more money, this has a spiralling effect beyond recognition.
Philanthropy – With more money circulating the economy, the amount given to charities is likely to increase. Especially when the entrepreneurs come from tough upbringings themselves, charities will see bigger donations and this helps the people in need once again. According to a recent survey, nine in ten entrepreneurs donate money with seven in ten offering their time; of course, there is reason to suggest the latter is more valuable.
Creation of Jobs – As we discussed in the first point, successful entrepreneurs reach a point where they need help. Over time, their business will scale upwards and more jobs will be created. With more people now earning money, there is less stress on the benefits system and society continues to progress. In years gone by, we’ve also learned just how damaging unemployment can be with crime, illness, and poverty.
Increased Competition – Finally for the pros, the consumer will often get more choice thanks to innovation. If we use Steve Jobs and the iPod as an example, this opened up a brand new ‘MP3’ niche which is now home to many different companies. For the consumer, this is great news because they have more choice and perhaps even benefit from reduced pricing.
Control of Government – Although the statistics on this are fairly limited, there is always a risk of monopolies, corruption, fixed pricing, and fraud with some involvement of the authorities. Additionally, there is always the non-material factors to consider and many economists believe happiness to be a factor that doesn’t increase in an entrepreneurial-led environment.
Unemployment – ‘Wait, you said unemployment reduces’ – yes, we did, but there are theories to suggest one thriving market leads to a failing market elsewhere. For example, the increase in big supermarkets often causes unemployment for the independent traders within an area and this is a huge problem. If we listen to this theory, jobs can’t be created from thin air; instead, they need to be taken from other industries.
What Makes an Entrepreneur?
In truth, there are various factors that make entrepreneurs successful but two of the biggest are innovation and competition. Starting with the former, entrepreneurs have a talent for spotting gaps in the market not only with their initial product/service but with marketing and every other business process. Rather than letting problems weigh their mind, they simply create a new solution each time and this allows them, and the business, to keep progressing no matter what.
After innovation, entrepreneurs also need a competitive edge and a will to succeed. Often, businessmen and women have a background in sport or at least played for some time during their education and this isn’t surprising because the two tasks require the same desire to be better than everybody else.
Do you believe the entrepreneurial society to be largely beneficial or is it a hindrance? Ultimately, the debate will roll on for years to come but you cannot deny the positive influences we listed in the ‘pros’ section whilst the ‘cons’ section seems to be based on unproven theories and what ‘could’ and ‘might’ happen!