“Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it’s the only thing that ever has.” — Margaret Mead
To begin with, they create new businesses. In turn, this creates jobs and stimulates the economy.
Moreover, they create new products that can improve people’s lives. Additionally, entrepreneurs are often involved in philanthropy and volunteering within their communities.
Still not convinced? Here are 11 specific examples of how entrepreneurs make a difference.
1. Creating jobs.
As previously mentioned, entrepreneurs start new businesses that create new jobs. In fact, America is experiencing a surge in entrepreneurship.
The number of new business applications filed in 2021 alone was 5.4 million, and the number in 2022 was nearly as high (5.1 million). Furthermore, according to SBA’s definition, there are 33.2 million small businesses in America, which make up 99.9% of all companies.
As a result, approximately 17.3 million new jobs were created by small businesses between 1995 and 2021, which represents just under two-thirds of all new jobs. Additionally, they employ almost half of all Americans in the private sector (46%).
2. Generating economic growth.
New businesses are also a source of economic growth for entrepreneurs. As a new business grows, more jobs and more economic activity are created, resulting in more demand for goods and services.
Entrepreneurship also contributes to the economy through resource allocation and value creation. The ability to identify opportunities and exploit them leads to the creation of new businesses and jobs. In turn, this boosts national productivity and income per capita, boosting the economy. Furthermore, entrepreneurship fosters innovation and creativity, which will drive economic growth.
3. Developing new products and services.
Additionally, entrepreneurs develop a wide range of new products and services that can improve the lives of consumers.
Among the new medical treatments and technologies developed by entrepreneurs are new delivery methods for goods and services. Our lives have been improved in many ways thanks to these innovations.
Take, for example, antibiotics.
Through antibiotics, millions of lives have been saved. The use of antibiotic drugs was first described in 1877 AD by Louis Pasteur and Robert Koch.
Penicillin, derived from molds, was discovered by Alexander Fleming in 1928.
Antibiotics spread rapidly throughout the 20th century and proved to be a significant health improvement, combating nearly every known infection.
4. Creativity and market intelligence.
It is natural for entrepreneurial thinking to embody creativity, a limitless imagination for what’s possible. However, creative solutions coupled with comprehensive market intelligence are the keys to successful entrepreneurial endeavors.
Entrepreneurs who are successful start by understanding the problem well. By presenting relevant data, they will be able to demonstrate why it is a pressing need. Furthermore, they examine how the problem has been dealt with historically in addition to identifying it. It’s there that their creativity shines.
In other words, entrepreneurs decide current approaches aren’t good enough rather than tinkering away at them. The aim is to improve social problems exponentially by developing new ideas.
As an example, EarthEnable discovered that 75% of Rwandan families live on dirt floors, which contributes to dust-borne illnesses and parasite infections that cause child mortality.
To solve the problem, it looked to a growing trend in the United States where homeowners installed sustainable earthen floors. Children in Rwanda have access to an affordable and safe floor made of gravel, laterite, fine earthen mix, and oil, thanks to EarthEnable. By installing these floors, childhood diarrhea is reduced by 49%, and parasitic infections are reduced by 78%.
5. Giving back to their communities.
Entrepreneurs are often involved in philanthropy and volunteer work in their communities. Their donations to charities, time spent volunteering, and support of local businesses are some of the ways they give back.
One SCORE survey found that small businesses donated 250% more to local non-profits and community causes than large businesses, and 75% of small business owners donate 6% or more of their profits to charity.
The majority of small businesses donate to similar organizations and causes in their communities, while each has a list of different causes and organizations it supports. The survey, the following businesses were surveyed:
- 66% percent give to local charities
- 48% support local youth organizations
- 42% donate to local first responders
- 39% support local religious organizations
- 37% aid local services groups such as the Rotary Club and Scouts
- 32% donate food or volunteer in local soup kitchens.
6. Increasing access to education and healthcare.
Additionally, entrepreneurs are working to increase access to healthcare and education. By creating businesses that provide affordable education and healthcare, they are providing essential services to the community.
Online courses, telemedicine, and mobile clinics are examples of businesses created by entrepreneurs.
7. Making the world a more connected place.
The world is also becoming more connected, thanks to entrepreneurs. By creating businesses, they offer people new communication, learning, and collaboration options.
Businesses have created platforms for social media, online learning, and video conferencing, for instance.
8. Solving social problems.
Solving social problems is often the responsibility of entrepreneurs. They use their creativity and innovation to solve problems like poverty, hunger, and homelessness. For example, entrepreneurs have created businesses that provide affordable housing, food banks, and job training programs.
For example, the Innovation and Entrepreneurship Initiative at Duke has a dedicated program for Social Innovation. The program is “building upon and extending the strengths of the university to create a transformational learning environment to inspire, prepare, and support entrepreneurial leaders and scholars to turn knowledge into action in pursuing innovative solutions to the world’s most pressing problems.”
Among the most recent projects of the initiative is the Duke-UNICEF Innovation Accelerator, which focuses on entrepreneurship for menstrual hygiene and health in three African countries.
9. Improving the environment.
Environmental improvement is also a priority for entrepreneurs. Environmental protection, energy conservation, and pollution reduction are among the goals they are working to achieve.
Solar panels, wind turbines, and electric cars are just a few examples of businesses created by entrepreneurs. Aurora Solar, for example, provides software to solar energy companies so they can design and sell solar panels remotely.
10. Promoting peace and understanding.
Globally, entrepreneurs are also working to promote peace and understanding. Using their businesses, they connect people from different cultures and backgrounds.
Entrepreneurs have created businesses that provide educational opportunities, cultural exchanges, and conflict resolution. The PeaceTech Accelerator alumni network includes entrepreneurs from around the world using technology, media, and data to reduce violent conflicts.
11. Empowering women and minorities.
Entrepreneurs are also empowering women and minorities. By empowering women and minorities to start businesses, they’re making it easier for them to succeed. Entrepreneurs have started mentoring programs, microloans, and training programs for women and minorities as well.
For instance, Ellevest uses an algorithm to determine gender differences such as lifespan, career breaks, and women’s pay as part of its digital investment platform for women. This program helps females reach their financial goals by providing them with cost-effective investment opportunities.
It is entrepreneurs who drive our economy and society forward. They are responsible for making things happen. Their ideas, products, and jobs are what make our world a better place. Our world would not be the same without them.
What is entrepreneurship?
Basically, entrepreneurship is creating a business from scratch by an individual or a small group of partners. Entrepreneurs actively seek particular business opportunities, and they assume the greatest amount of risk associated with their projects. In addition, this person has the greatest stake in the project’s success.
Innovation is often a part of entrepreneurial pursuits. An enterprise may cultivate “intrapreneurship” in order to mirror this element. A new idea may result when employees think like entrepreneurs. While the enterprise retains authority, the workers are given extra freedom but also bear the risks.
What’s more, every sector benefits from entrepreneurs.
What industries do small business entrepreneurs work in?
According to Guidant Financial’s survey of small business owners, the top three industries for startups are:
- Food and restaurant operations
- Business services
In addition to health and fitness, finance, insurance, and law ranked among the top industries. Whatever type of business an entrepreneur runs, they should prioritize innovation and perseverance.
How do entrepreneurs add value to the economy?
As entrepreneurs introduce innovative products, services, and technologies to the market, they play a vital role in the economy. In the short and long term, they promote economic growth and create jobs.
Entrepreneurs help improve the economy’s efficiency by staying competitive and introducing new ideas.
In what ways do entrepreneurs contribute to society?
Entrepreneurs can create new markets by introducing new and improved products, services, and technology. This increases national wealth and income. As a result, the government can provide more national benefits to its citizens.
Furthermore, entrepreneurs contribute to the creation of jobs as well. Entrepreneurs provide employment opportunities for others through the creation of new businesses or by expanding existing ones. It can reduce poverty and crime rates, which can benefit society as a whole.
Image Credit: Porapak Apichodilok; Pexels; Thank you!