Question

Proposition: "Entrepreneurship" is a meaningless phrase of no importance for economics. Support or attack this proposition.

Answer 1

Entrepreneurship is the willingness to venture into a business idea while utilizing and managing the available resources with an aim of making profit.The benefits of entrepreneurship include;offers employment,contribute to the growth of an economy, provide variety of products to consumers and innovation.

Entrepreneurs are self employed and also provide job opportunities when their businesses expand.Different entrepreneurial ventures provide a variety if goods and services which are available for consumers to purchase(Shobit,2019).A country's economy grows since income and employment is created by entrepreneurship.This adds to the national income of a country.Innovation activities emerge when new ideas are used by entrepreneurs to develop goods and services.

Though there are drawbacks of entrepreneurship, the advantages supersedes them. Entrepreneurship is of importance for both educational purpose and economic purpose.It is an economic concept which is being practiced through the daily activities of production,processing and manufacturing of products consumed to satisfy the unlimited human wants.It is also taught in schools for mastery of skills which can be used practically.

An entrepreneur is an person who sets up and grows a business. They mix distinctive factors of production (such as - land, labour and capital) to strive and create a new worthwhile enterprise venture. Entrepreneurs are themselves an essential 'factor of production' and an indispensable issue of a functioning free market economy. Hence, the proposition that entrepreneurship is a meaningless phrase of no significance for economics is a baseless proposition, and the importance and the position of an entrepreneur are as follows:

Free market evolution

.Entrepreneurs are necessary in a free market because they assist the market reply to changing costs and patron preferences. For example, with the upward push in the use of the internet, an entrepreneur might also see the possible to set up a new home shipping provider which uses an app for shoppers to buy. Without entrepreneurs, product markets would grow to be static and be slow to modifications in new technology and trends

Efficiency improvements

A profitable entrepreneur may additionally take revenue from an set up business. This can motive 'creative destruction' A phrase used to describe changes in the economic system - which in the non permanent may want to lead to corporations going out of enterprise and/or job losses. However, this doable for creative destruction also creates an incentive for an mounted business to adapt and extend their own efficiency. For example, in response to Uber taxi services, it created an incentive for established taxi-firms to advance their very own apps.

Dynamic efficiency

Entrepreneurs can make radical modifications and introduce new technologies which notably pass on an industry. For example, Henry Ford's novel use of assembly strains enabled a drastic cut in the common price of producing a motor car. His effectivity financial savings pressured other carmakers to observe suit.

New markets.

Entrepreneurs can often 'redefine the rules' of an established industry. For example, in the 1990s, if you desired to hire a room, you would scour newspaper ads and have to make a decision based on forty phrases of text. However, the new carrier "Spareroom.co.uk" skill you can easily scan via one-of-a-kind chances and have an opportunity to get to know your practicable flatmate earlier than you cross in. This has created a new market and new carrier that will increase the effectivity of finding a well matched person to stay with.

A similar new product is 'Room for help.' Where humans can rent a room in return for imparting a service such as cleaning/babysitting It used to be created with the aid of Ms Rolando after she got here throughout an advert whilst looking for a room to rent. It is an instance of how entrepreneurs often set up a business in response to their person need.

New Gig economy.

The new technological economic system affords multiplied possibilities for entrepreneurs. Low start-up charges supply entrepreneurs the attainable to locate new area of interest markets to develop. Many of the current massive technological corporations are distinctly younger and began as small start-ups - regularly in a persons room or garage.

New values.

An entrepreneur is no longer simply about rate and profit. An entrepreneur may additionally be encouraged to enter an enterprise to provide a extra moral product or supply a service to a community. For example, Anita Roddick set up Body Shop at a time when many cosmetics have been tested on animals. Her new set up eschewed animal testing. It proved a profitable commercial enterprise method and it quickly became the industry standard. In different situations, entrepreneurs may additionally take a hazard and furnish a community carrier such as a volunteer led railway - imparting steam trains for vacationers and locals.