Business creation, also called entrepreneurship, is the process of establishing new businesses and companies. It is a major source of economic growth and adaptation, and it is an important career choice for millions of people worldwide.
Entrepreneurs develop innovative products and technologies that improve existing products, services, and markets. Some of the most famous entrepreneurs, like Bill Gates (Microsoft), Larry Ellison (Oracle), and Steve Jobs (Apple) create revolutionary innovations that change how we work and live.
The development of new products and services increases the economy’s gross national income by adding to a country’s market economy and contributing to higher employment levels, earning more money for the national tax base. It also provides a boost to government spending on public projects, which is essential for a country’s long-term health.
Challenges Existing Firms to Become More Competitive
Entrepreneurship creates opportunities for firms to expand their market range and increase their profitability by offering products or services at lower prices. This can lead to a re-assessment of current operations, cost reductions, and enhanced efficiency.
Competition in an economy stimulates economic growth through increased productivity and improved performance. New entrepreneurs with high-growth ambitions and innovativeness challenge established firms to re-assess their business models, expand their product lines, and increase their value, thereby improving their ability to compete.
A successful entrepreneur gains a significant amount of personal satisfaction through the creation of a new business. It is an opportunity to pursue a passion that allows them to grow beyond their skill set and learn leadership and business skills that they can use for the rest of their life.