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    Economic Growth

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    Hannah Jane Umbay
    Entrepreneurship drives economic growth in 3 key ways: 1) New businesses stimulate related industries like suppliers and services, expanding the overall economy as seen in India's IT boom in the 1990s. 2) Entrepreneurs create new products and markets, generating new wealth beyond what existing businesses can achieve. 3) Successful ventures lead to more jobs and tax revenue, allowing governments to invest in other sectors and retrain displaced workers, benefiting the entire national income.

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    Economic Growth

    Uploaded by

    Hannah Jane Umbay
    50 views1 page
    Entrepreneurship drives economic growth in 3 key ways: 1) New businesses stimulate related industries like suppliers and services, expanding the overall economy as seen in India's IT boom in the 1990s. 2) Entrepreneurs create new products and markets, generating new wealth beyond what existing businesses can achieve. 3) Successful ventures lead to more jobs and tax revenue, allowing governments to invest in other sectors and retrain displaced workers, benefiting the entire national income.

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    Entrepreneurship drives economic growth in 3 key ways: 1) New businesses stimulate related industries like suppliers and services, expanding the overall economy as seen in India's IT boom in the 1990s. 2) Entrepreneurs create new products and markets, generating new wealth beyond what existing businesses can achieve. 3) Successful ventures lead to more jobs and tax revenue, allowing governments to invest in other sectors and retrain displaced workers, benefiting the entire national income.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    50 views1 page

    Economic Growth

    Uploaded by

    Hannah Jane Umbay
    Entrepreneurship drives economic growth in 3 key ways: 1) New businesses stimulate related industries like suppliers and services, expanding the overall economy as seen in India's IT boom in the 1990s. 2) Entrepreneurs create new products and markets, generating new wealth beyond what existing businesses can achieve. 3) Successful ventures lead to more jobs and tax revenue, allowing governments to invest in other sectors and retrain displaced workers, benefiting the entire national income.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Economic Growth

    Entrepreneurs Spur Economic Growth

    New products and services created by entrepreneurs can produce a


    cascading effect, where it stimulates related businesses or sectors that need
    to support the new venture, furthering economic development.

    For example, a few information technology companies made up the IT


    industry in India during the 1990s. The industry quickly expanded and many
    other sectors benefited from it. Businesses in associated industries—such as
    call center operations, network maintenance companies, and hardware
    providers—flourished.

    Education and training institutes nurtured a new class of IT workers who were
    offered better, high-paying jobs. Infrastructure development organizations and
    even real estate companies capitalized on this growth as workers migrated to
    cities where employment was growing.

    Similarly, future development efforts in underdeveloped countries require


    robust logistics support, capital investments, and a qualified workforce. From
    the highly qualified programmer to the construction worker, entrepreneurship
    benefits a large part of the economy.

    Entrepreneurs Add to National Income


    Entrepreneurial ventures help generate new wealth. Existing businesses may
    remain confined to existing markets and may hit the glass ceiling in terms of
    income. New and improved products, services or technology from
    entrepreneurs enable new markets to be developed and new wealth to be
    created.

    Additionally, increased employment and higher earnings contribute to better


    national income in the form of higher tax revenue and higher government
    spending. This revenue can be used by the government to invest in other,
    struggling sectors and human capital. Although it may make a few existing
    players redundant, the government can soften the blow by redirecting surplus
    wealth to retrain workers.

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