Entrepreneurs are proved as the backbone of modern economics. One of the reasons why the United States is an innovative and prosperous nation is that of enormous innovation and entrepreneurs taking the risk to take the innovation to business level. Lots of medium size firms provide innovations & employment which are intrinsic to economic development. Goods and services which were taken for granted, are introduced by entrepreneurs. In the United States, the effective operation is achieved by the Telephone services, Automobile services, Aeroplane services, air conditioning services, software and personal computing invented and delivered by entrepreneurs.
(Writer, 2016)The output and the capital growth in the economy are functioned by the performance of entrepreneur. It’s up to the entrepreneurs to involve innovation in production facilities to bring growth. The quality of entrepreneurs determines the growth rate of the nation. The production factors such as land, labour, and capital become indolent without entrepreneurs. As they can harness them for a successful venture.
(Braunerhjelm, 2010)In the United States, the 75% of the 16 million business is operating as a sole proprietorship. These small firms are expanding their networking all over the world and this is how they can capture their marketplace globally. Lots of developing countries encourage enterprises as per their talents, vision opportunities and resources. They create employment, jobs for women and generate a return on economic development.
They create rural development, domestic savings and implement new technology and create political and social ability. (Rarr, 2016)Entrepreneurs adapt new methods to improve their operation. They try to add value to their business by reducing cost, which makes the products and services available at reasonable price to people and makes their business sustain. This results in an increase in productivity and builds up the gross domestic product. According to (Francis, 2015) increase in productivity increase unemployment, which will then individuals to be more competitive and creative.
This leads to re-invention of the wheel and boosting up the economy.Increased competition in the marketplace causes saturation, hence entrepreneurs look for new markets for their products and services or adapt unique market penetration tactics. Either way, it increases competition which is a positive impact on the economy. Entrepreneurs often look for markets outside the domestic sphere.
Hence, generate foreign revenue and increase prosperity. It helps in drawing people out of poverty and generate funds for social welfare which uplift the living standards.(Francis, 2015) Due to vibrant entrepreneurialism wealth is created on a national scale for the government in the form of taxation, which can be redistributed accordingly to the services and communities.Most of the evidence shows that new firm enhances growth. Entrepreneurship capital with a standard production that functions to determine the degree of entrepreneurship capital, which has a major impact on GDP.(wennekers et al 2005)