Why Entrepreneurship Is the Engine of Economic Development
Entreprene urial activity,or in other words, the creation of new
businesses, is what supports local economies, what supports our
country's GDP, and what helps the stock market continue to grow. So
why is it that entrepreneurship is such a powerful engine of economic
development?
We often hear that entrepreneurship is important, but it’s hard to
overstate just how vital entrepreneurship is for the economy at large.
Entrepreneurial activity, or in other words, the creation of new
businesses, is what supports local economies, what supports our
country’s GDP and what helps the stock market continue to grow.
Why Entrepreneurship Is the Engine of Economic Development
https://www.entrepreneur.com/article/363407 2/7
So why is it that entrepreneurship is such a powerful engine of economic
development?
It’s actually more complex than you might think.
Small businesses, new businesses and job growth
First, the evidence suggests that small businesses created by
entrepreneurs are disproportionately responsible for job growth. Small
companies create more than 1.5 million jobs annually in the United
States, which translates to 64 percent of total new job growth.
Why are new jobs so important? Economic growth is partially dependent
on job growth. More available jobs lead to more people working, and
more people working leads to higher GDP. On top of that, more people
have recurring income and can better provide for their families.
Entreprene urial activity,or in other words, the creation of new
businesses, is what supports local economies, what supports our
country's GDP, and what helps the stock market continue to grow. So
why is it that entrepreneurship is such a powerful engine of economic
development?
We often hear that entrepreneurship is important, but it’s hard to
overstate just how vital entrepreneurship is for the economy at large.
Entrepreneurial activity, or in other words, the creation of new
businesses, is what supports local economies, what supports our
country’s GDP and what helps the stock market continue to grow.
Why Entrepreneurship Is the Engine of Economic Development
https://www.entrepreneur.com/article/363407 2/7
So why is it that entrepreneurship is such a powerful engine of economic
development?
It’s actually more complex than you might think.
Small businesses, new businesses and job growth
First, the evidence suggests that small businesses created by
entrepreneurs are disproportionately responsible for job growth. Small
companies create more than 1.5 million jobs annually in the United
States, which translates to 64 percent of total new job growth.
Why are new jobs so important? Economic growth is partially dependent
on job growth. More available jobs lead to more people working, and
more people working leads to higher GDP. On top of that, more people
have recurring income and can better provide for their families.
