How Entrepreneurs Stimulate Economies And How They Should Be Helped
I recently heard a theory that entrepreneurs are harming the economy. The individual claimed that too many people are “jumping” into the entrepreneurial world and the economy is depleted of laborers.
While I am not one to debate against ignorance, I will say that if this is so true, why are unemployment rates still high?
If so many people were entrepreneurs, they would not be filing for unemployment.
Now those unemployment figures are lower than say, 1 year ago. And I believe that much of that is a direct result of economy stimulation from entrepreneurs.
In this post, I am going to tell you several ways that entrepreneurs are stimulating the economy, and several ways that we should be helping them to do so.
How Entrepreneurs Stimulate The Economy #1: They Invest To Create
Economical stimulation requires spending. Entrepreneurs spend by investing in goods and services to create and build new businesses. They require:
- Tools and equipment
- Working areas
- Office space
- and the ingredients to create something new
How Entrepreneurs Stimulate The Economy #2: Jobs
Yes some entrepreneurs are doing everything solo, but many are creating jobs. Plus, many of the solopreneurs contract freelancers.
All in all, entrepreneurs are putting people to work and when those people are making money, they also spend money.
How Entrepreneurs Stimulate The Economy #3: The Taxes They Pay
No matter what country, there are taxes to be paid. The taxes governments gain from entrepreneurs are huge.
I would predict that entrepreneurs pay enough taxes to handle 90% of the maintenance on that country’s infrastructure (roads, water, electric, etc…).
How Entrepreneurs Stimulate The Economy #4: Regional And Global Economical Integration
It is entrepreneurs who have moved trade into regional and global areas that were at one time, off limits.
Face it, we are now moving into Chinese markets where it seemed impossible at one time.
We owe this global integration to entrepreneurs who have taken risks and negotiated with governments to enter these markets.
As we strengthen the global economy, we strengthen the local economy.
How Entrepreneurs Stimulate The Economy #5: With Greater Diversity
With entrepreneurs offering a greater range of products, consumers have more to choose from. Consumers therefore can choose by price, quality, brand name, etc…
Some may try to say this harms the economy, but I see it on the flip-side. More choices means greater spending.
Diversity helps the economy!
It creates a demand for products and services which creates more businesses and jobs.
How Entrepreneurs Stimulate The Economy #6: They Create New Technology
Going right along with diversity, entrepreneurs are the ones who develop new and helpful technologies that help consumers, businesses and other entrepreneurs prosper.
Just consider some of the new technologies created in the recent past and how they have helped create new jobs and send to market to spend their money.
- Web-based office software
- Touch kiosks
- Smart grid technology
- Voice activated software
And much more.
Not to brag, but I also helped in the technology entrepreneurship revolution with the help of some wise minds.
We developed a recruiting application for network marketers that has turned multilevel marketing upside down. It takes the rejection out and provides tools to make recruiting simple. Check out Rocket Recruiting here.
And Entrepreneurs Are Focused On Helping The Environment
Overall, it is entrepreneurs who are focused on helping the environment for future generations. They are making moves to combat climate change, lower greenhouse gasses and preserve biodiversity.
Finding ways to supply water to zones where water is as valuable as gold and keeping energy flowing consistently is a huge priority with many entrepreneurs.
How Can We Help Entrepreneurs?
We need to help entrepreneurs stay focused so the economy will continue to grow.
How?
Help Entrepreneurs Through Immigration Reform
While I try to stay clear of political subjects, this is one where we need to closely consider the consequences.
We allow citizens to travel here for education purposes and when finished with their education, we send them away to the war torn country they came from.
The thing is, that person desired to start a business here but because of immigration standards, the answer is no.
Immigrants are a huge percentage of entrepreneurial business start ups. We need to look at this closely.
Help Entrepreneurs By Halting University “Red Tape”
Many great ideas have come from research within Universities. But these ideas must go through an enormous amount of red tape to gain licensing for manufacture.
Instead of the University having any say over licensing, they should allow professors the ability to decide with the University still getting their “cut” of the royalties.
Help Entrepreneurs In Healthcare
The healthcare standards need to be evened out. Entrepreneurs should be able to have an affordable plan that is comparable to the salaried worker at a large corporation.
And costs need to come down on meds and services.
Help Entrepreneurs By Making The Legal Process Simple
Every State has a different process to start a business.
If the whole legal process was streamlined into a simple online format that will meet the needs of every State, the entrepreneur can simply go online and fill it out and not have the frustration of visiting multiple government or legal offices.
Conclusion
So do you agree that entrepreneurs help the economy?
Why or why not?
Please leave your views below.
And also please share it on social media.
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