How important entrepreneurs for Progress A State?

The meaning of entrepreneurs for the progress of the nation

Entrepreneurship is one of the factors of production which plays an important role in development.

According to Joseph A. Schumpeter (1883-1950), the main source of prosperity does not lie in the high economic growth, but rather on economic development which is dominated by the entrepreneurial role of economic actors.

My activities are entrepreneurship, opening a workshop

According to Schumpeter, economic development is the increase in output caused by the innovations made by entrepreneurs. Innovation has a broader meaning, not only on the discovery of new production techniques, but also the discovery of new commodities, new types of materials for production, ways of new businesses, and new ways of marketing. By Schumpeter, innovation in entrepreneurship is regarded as a leap in the production function.

For advanced industrial countries and the developing countries, like Indonesia, a growing awareness of how important the role of entrepreneurship in national development. This can be seen from the magnitude of the role of SMEs especially its ability to absorb labor and versatility to the economic turmoil.

The role of entrepreneurship in the economy, including the following:

Creating Employment Opportunities.

With entrepreneurial spirit, factors of production can be combined so as to produce new products. With the production, employment has become more open and this can reduce unemployment.

Boost Economic Growth and National Income.

With the advent of new products, both in the form of goods and services, will contribute to economic growth and national revenues through increasing the number of goods and services.

Reduce Economic Inequality in Society. 

The number of available job opportunities that will affect people's income so that the economic gap between high- and low-income people can be reduced.

Fostering Independent Community in Economics.

Entrepreneurship encourages people not to rely on the other party, but were able to develop and participate in the national economy.

Growing a Creative Power Nation

With entrepreneurship can foster creativity of the nation so as to optimize the scarcity of economic resources to be used effectively and efficiently.