Monday, September 25, 2023

Why entrepreneurship is integral to economic growth

Entrepreneurship is crucial for a thriving economy. Any form of entrepreneurship, whether it’s a scalable startup, small business, or direct selling, can have a significant impact on the economic growth of a nation. Entrepreneurs create employment opportunities, help foster innovation, generate profits, adding to the GDP, and have the potential to effect a positive change in society. The role of entrepreneurship in economic development can’t be underestimated.

Every direct seller is an entrepreneur in charge of their own business, reaping the rewards of their hard work. If you’re a direct seller, you are part of a thriving industry that contributes to the economy beyond your earnings. Here are some ways in which entrepreneurship plays a critical role in developing the economy:

1. Job creation

Entrepreneurs create jobs. It’s that simple. Establishing an enterprise leads to the hiring of people and subsequently stimulates other businesses whose products and services are needed to support the venture. Additionally, as their enterprise experiences success and growth, more jobs are created. A continuous cycle of this phenomenon could prove to be an effective way to combat the unemployment rate. In the case of direct selling, while you are not recruiting people to join your business, the framework ensures that you benefit from inspiring other entrepreneurs and consequently create a network of self-reliant, motivated business owners. Direct selling also gives rise to indirect employment by outsourcing production, packaging and logistics of the products.

2. GDP impact

Small and medium scale enterprises (SME’s) account for around 90% of businesses and 50% of employment globally. In India, entrepreneurial ventures at this scale contribute as much as 37% to the GDP and are the backbone of the economy. These businesses contribute to the national income directly through the profits they generate and indirectly through the increased employment, tax revenues and from the transfer of wealth to their investors and shareholders.

3. Innovation

The risk-taking nature of entrepreneurs means that they’re open to new ideas that could have the potential to create breakthroughs. Their strong drive to invent and innovate leads to the improvement, and even creation of products and services, which could give rise to entirely new market segments. It’s worth mentioning that the better the competition among entrepreneurs in a given sector, the greater the innovation. Consumers stand to benefit from this because it translates to improved product quality and competitive pricing. Although you may have the same products as other sellers, your sales strategy alongside your ability to recruit, train, and motivate downlines, could differentiate you from your peers in the game.

4. Social Change and community development

A social entrepreneur’s ability to identify problems and unmet needs and devise solutions to address them is invaluable to society. With their unconventional thinking, they can find better ways to solve a lot of the world’s problems. Many entrepreneurs have a philanthropic spirit and take up social causes to improve the lives of people in their community and beyond. An ear to the ground is necessary in most early-stage businesses and this provides entrepreneurs with a deeper insight for more impactful change. Through RHYTHM (Raising Yourself to Help mankind), QNET and its distributors are involved in a range of philanthropic activities from sponsoring sportspeople to establishing computer labs in schools.

By 2020, India is expected to have the largest young workforce in the world. With its economic growth falling below 7%, the lowest it’s ever been in five years, and the unemployment rate rising to 6.1% in the 2017-18 fiscal year, it is more important than ever to promote and make entrepreneurship accessible in the country. Only then can the potential of this young demographic be fully realised.

With an easy signup process and transparent revenue streams, direct selling represents a significant opportunity in this regard. As this segment continues to develop rapidly in India, it will make an increasingly substantial contribution to India’s economic growth through a skilled and driven workforce powered by entrepreneurial ability.

Also Read:

QNET Knowledge Series|Advantages of being an entrepreneur

These entrepreneurs believed in their vision, you should too

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