How Entrepreneur Improvement in Economic Efficiency:
You are aware that efficiency means to have greater output from the same input. Entrepreneurs improve economic efficiency by,
- Improving processes, reducing wastes, increasing yield, and,
- Bringing about technical progress, that is, by altering labour-capital ratios. You are aware that if labour is provided with good implements (capital), its productivity increases.
Entrepreneurial ventures literally generate new wealth. Existing businesses may remain confined to the scope of existing markets and may hit the glass ceiling in terms of income. New and improved offerings, products or technologies from entrepreneurs enable new markets to be developed and new wealth created.
Entrepreneurs are vital to the progress of the a country’s economy. These small business owners are instrumental to improvement of the nation. Especially in times of recession, their business activities help spur economic activity and encourage exchange. Entrepreneurs, therefore, serve an important purpose in our society by contributing to the improvement of the economy in a number of ways.
- Entrepreneurs create businesses that hire people.
- Entrepreneurs pay taxes
- Entrepreneurs create demand for products which in turn create jobs and other businesses.
- Entrepreneurs introduce new technologies to the market.
- Entrepreneurs stimulates the economy by instilling confidence in people