Delving into the world of business and entrepreneurship
Businesses are the backbones of any economy as they generate the most revenue (not to be confused with profit) in an economy. If it weren’t for many businesses, everyday items we use today may not have been easily accessible. Promptly before we delve deep into the world of business and entrepreneurship and why they are important for everyone to know and be aware about. We will learn about the basics of businesses and entrepreneurship.
What is Business and Entrepreneurship?
At its core a business is an organization or entity that provides goods or services to consumers in exchange for money. There are many types of businesses such as ones that do manufacturing, retail or provide a service and etc. A business may be as small as the vada pav stall in your local area – known as sole proprietorships – or as big as a company like Google employing thousands of people (known as corporations). Business size can determine their contribution towards the economy. A small business may not contribute as much to the economy as a corporation does but contributions of many small businesses ripple a change in the overall economy.
Setting up a business is no small undertaking and that is why there is a term for designing, launching, running, and growing of a business venture known as entrepreneurship.
Why does it matter?
Businesses create job opportunities for people eligible for work, furthermore, new businesses also create competition and this competition compels businesses to produce higher quality products increasing quality of life for customers.
For example, if a singular company dominates a market, consumers will not have options to purchase a product and they will be forced to buy from the same company which controls the price, quality and quantity of the products in the market they dominate. If there are more businesses, consumers are more likely to have options and price and quality will not be in control of one organisation.
Furthermore, according to recent studies done by Small Business Administration, small companies are responsible for creating 1.5 million jobs annually just in the United States, this means small businesses may create billions of jobs annually worldwide.
What it takes to start a business
A new business takes a lot of determination and courage to start and operate and this voyage requires the entrepreneur to hone a few skills such as:
- Hard Working
- Risk Taker
- Optimistic
- Independent
- Effective Communicator
- Creative
- Self-confident
- Innovative
The Significance of Business and Entrepreneurship
Entrepreneurship drives innovation and challenging status quo this brings forward new ideas into the market and improves standard of living and new and better products for consumers. We would never have seen the rise of businesses such as Zomato and Swiggy if the entrepreneurs did not have challenged the status quo of having to go to the restaurants yourself to bring the food. They innovated by bringing everything online to an application on your phone and making lives easier for most consumers. This also generated a lot of job opportunities for delivery boys who may have been struggling to find jobs otherwise.
To sum it up new businesses generate job opportunities, make mundane tasks or life in general easier for everyone and they also bring forward options and innovation in the market for consumers. Additionally, they generate revenue in an economy and increase standard of living.
By: Aarav Sinha IX B