The Role of the Entrepreneur in the Economy: The Economy Thrives on the Entrepreneurial Spirit

The role of the entrepreneur invariably keeps the economy in a state of constant flux, complete with innovation and opportunity. The enterprising entrepreneur gives the sagging economy a boost, at times, knowingly or unknowingly. 

Understanding what the economy represents and what an entrepreneur is, will help you to comprehend the role of the entrepreneur in the economy.

What is the economy?

Businessdictionary.com suggests that the economy is “an entire network of producers, distributors, and consumers of goods and services in a local, regional, or national community.”

Unfortunately, millions of these people around the world receive little or no recognition for their innovation in conjunction with the growth of the economy.

What is an entrepreneur?

Investopedia.com. suggests that an entrepreneur is “an individual who, rather than working as an employee, runs a small business and assumes all the risk and reward of a given business venture, idea, or goods or services offered for sale.”

You could become an entrepreneur simply by striking out, starting your own business and doing something new, unusual or different.  

“The entrepreneur is commonly seen as a business leader and innovator of new ideas and business processes.”

Investopedia.com also suggests that entrepreneurs “play a key role” in the economy as “the people who have the skills and initiative necessary to take good new ideas to market and make the right decisions to make the idea profitable.”

Since there are so many unrecognized or unacknowledged entrepreneurs what do you, as a potential entrepreneur of the present or future, stand to gain since there is risk associated with becoming an entrepreneur?

“The reward for the risks taken is the potential economic profits the entrepreneur could earn.”

Any individual can become an entrepreneur and in that way, begin to make a positive contribution to the economy. Perhaps, during a period of unemployment due to economic decline, the entrepreneurial spirit needs to be encouraged. Entrepreneurs create jobs, as well as new global opportunities for others, and are instrumental in global economic growth.

Many factors contribute to the stifling of global economic growth including natural disasters, war and oppression. At the same time, the human spirit is oriented towards survival and even the worst scenario can result in a revival of the entrepreneurial spirit. 

A difficult economic period is often the time when business leaders, innovators and developers begin to rise to the top as entrepreneurs with solutions to problems, issues and concerns related to economic growth and development around the world.

The economy will always continue to fluctuate. Perhaps one might suggest that it is invariably at its highest when there are the greatest numbers of entrepreneurs introducing new opportunities for those who play follow the leader. 

Entrepreneurial play presents a wonderful opportunity, as well as a challenge for everyone because new thoughts and ideas generate more new thoughts and ideas for other entrepreneurs to build upon. The economy thrives on the entrepreneurial spirit. Those who dwell in fear of change may try to quench the economy but are rarely successful.