6 Major Importance of An Entrepreneur in Africa and beyond

In every society, entrepreneur importance in the society can’t be underestimated.

As much as an entrepreneur is important to their business enterprise, they are also important to the society at large.

Every action of an entrepreneur will in one way or the other have an effect on the economy.

And that is why an entrepreneur is said to be important. But what is the importance of an entrepreneur?

There is various importance of an entrepreneur but I have taken my time to put together 6 major importance of an entrepreneur.

6 Major Importance of an Entrepreneur

The 6 major importance of an entrepreneur to Africa Economy and beyond are:

#1. Job Creation:

When an entrepreneur decides to start up a business enterprise either from an innovative idea or a pre-existing/idea.

The possibility that he will be able to do everything all by himself is very low even though he could at some point in the beginning of the entrepreneurial journey.

As the business grows, there will definitely be a rise in demand for labour. Both skilled labour and unskilled labour.

They all help in the running of the day to day business activities and are then paid for their impact in the business.

Depending on the type of business enterprise been set up (i.e. sometimes the number of employees can rise to as much as 2000).

For example, Amazon is said to have over a million employees as of December 2020 even though it wasn’t like that from the beginning.

Despite all the effort of the government in the creation of jobs in the nations, entrepreneurs are still the ones that are responsible for the creation of the majority of the job available today.

And this is one of the major importance of an entrepreneur. This leads us to the next one.

You can read more about entrepreneurship facts in this article

#2. Economic Development:

The development of the economy of a nation can be initiated by so many factors of which entrepreneurs are included.

Entrepreneurs are important in the development of a nation’s economy and as I said earlier, every action made by an entrepreneur has an effect on the economy.

With the rise of employment as a result of the establishment of businesses by the entrepreneurs, there will be a rise in the standard of living of the people who were employed.

The employees have a change in their lifestyle and there is a noticeable increase in the standard of their living.

Both the entrepreneurs and the employees have to pay taxes to the government and these taxes are used by the government to develop various sectors in the nation.

Especially in a developing countries, the existence of effective entrepreneurs can greatly move such a country to a developed state.

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Entrepreneurs are very much important in every nation for economic growth.

#3. Development of New and Existing Market:

An entrepreneur is someone who is always creative and always seeking good opportunities in the marketplace.

As a result of their creative activities, they develop a new market for a creative or innovative idea and build a business enterprise around it.

In other to make sales and become successful in the market, they ensure that they develop the new market which they have started and make sure that those who are in need of their product are aware of their existence.

Bring solutions to various problems of the people and making life better and easier.

Sometimes instead of developing a new market entirely from scratch and have to face various uncertainty.

Some entrepreneurs choose to develop the existing markets by providing creative improvement to the way things are done.

They study the market well, the consumer’s behaviour and buying habits survey, and figure out the lapses and try to fill in the gap.

They could either come up with a better way to market a product or service or develop a  more effective product in the marketplace.

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Whether it is a new market been developed or an existing one is being developed, an entrepreneur is always seeking ways of solving the problem of the people.

And the type of entrepreneur who is more concerned about making a profit would always focus on solving problems that the people are willing to pay for the solution they have either it is in the form of a product or service.

#4. Solving Socio-Economic Problems:

When it comes to solving socio-economic problems in society, an entrepreneur is one person that can help out in doing so.

Various socio-economic problems such as poverty, illiteracy, unemployment, child labour, and so on, can be solved by an entrepreneur either directly or indirectly.

For example,  with the creation of jobs by an entrepreneur, the problem of unemployment is solved and this in turn gradually eliminates poverty in society.

As the level of poverty begins to drop so also will illiteracy and child labour drop.

Because parents who are now employed can afford to send their children to school to get educated and this can go on and on affecting all aspects of the economy.

Apart from that of the employees, the entrepreneur also creates wealth for himself and his family.

Also, an entrepreneur can help in solving some socio-economic problems by creating a business around them.

For instance, an entrepreneur can decide to build a hospital in a society having a poor health conditions.

With this, the people’s problem is solved and the entrepreneur can profit from the establishment.

#5. Controlling Business Activities:

Running a business is one thing that can not be done by everyone (but you can if you are disciplined, dedicated and ready to do what it takes).

And this is the reason why an entrepreneur is important. They take up the responsibility of running a business and sometimes businesses.

They identify promising business opportunities in the environment and decide to bear all the risks involved in running the business.

While running their business, they can’t handle all the daily activities of the business so they delegate them to the employees and they are there to control the way things are done.

They direct and manage the business activities and guide the business until the point where it matches their dream and vision.

They are the ones in the driver’s seat of the business and they are the ones to take major decisions in the business.

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#6. Encouragement of Foreign exchange:

All entrepreneurs are always focused on solving the problems of the people and it is either they create a new solution to the problems or develop creative improvement to the existing solutions.

Making life easier by providing better ways of getting things done either in the form of a product or service.

As the entrepreneurs in a country develop solutions to the problems of the people in the country, it is very much possible that people in the neighbouring countries have similar problems.

Since a product or service has been developed to solve that problem, the demand for the product would rise in the neighbouring countries and this gives rise to foreign exchange.

The product would be exported to the neighbouring countries or the entrepreneur can decide to expand his reach and build branches in the neighbouring countries.

This can help to build up the foreign relationships between the countries involved and foster economic growth.

For some entrepreneurs, they might not get involved in exporting their products but they do import raw materials for production.

Whichever way, either exporting their product or importing their raw material, an entrepreneur help develop foreign exchange between nations.

And there you have it, the 6 major importance of an entrepreneur to you and I and the nation at large.

Without an entrepreneur can there be anything called business?

What do your think about this? Leave a reply in the comment box.

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