ENTREPRENEURSHIP AND SOCIETY

"Entrepreneur  is  a  person  who establishes  a  business  or  a venture  that  generates  some  value  to  the  customer  and  proves to  be  a  profitable  for  him / her. "

ENTREPRENEURSHIP AND SOCIETY

Entrepreneurship is the capacity and willingness to develop and participate in a business venture with the intention of making a profit regardless of the financial risks involved. The role of entrepreneurship in any economy is critical, as it contributes to the socio-economic development of societies in various ways, including

1. Identifying existing opportunities in the market - Through production and distribution of goods and services, entrepreneurial ventures seek to satisfy client needs and improve livelihoods. Constant market research provides insights into existing customer needs that inform decisions to provide goods and services. An example is Jumia Kenya which noticed a gap in the distribution of goods through online platforms and exploited this opportunity, giving rise to a very vibrant online business platform.
2. Creating employment opportunities – The World Bank 2016 Kenya Economic update placed employment uptake by the private sector at 67% in 2014. This figure is likely to have increased with the improved performance of Kenya in the ease of doing business ranking. Entrepreneurship helps bridge the unemployment gap through formal and informal business ventures that employ millions of Kenyans.
3. Contributing to national income – Through payment of taxes, businesses contribute to government revenue that consequently facilitates development. Entrepreneurial ventures further contribute to the GDP, an indication of their importance in raising revenue and financing government projects, as well as contributing to economic growth.
4. Infrastructural Development – Entrepreneurial ventures open up infrastructural development in their localities. Starting up businesses often leads to the development of transport and communication networks, driven by the need for infrastructure created by these businesses. Companies like Keroche and Dominion farms opened up their localities, enabling thriving businesses to take root, taking advantage of the good transport and communication channels available.
5. Contributing to Community Development – Through participation in Corporate Social Responsibility, entrepreneurs contribute to and support the development of infrastructure for education, healthcare, business training & mentorship and other social needs. In Kenya, initiatives and organizations such as the Mater Heart Run, the KCB Lion’s Den, Blaze by Safaricom and Equity’s Wings to Fly are but a few initiatives by entrepreneurs that are contributing towards improving access to health services and education and providing financial support and mentorship to other young entrepreneurs.

Let's lookup at some of the examples given below....

1. Dhirubhai Ambani

Dhirubhai Ambani (1932–2002) is an Indian businessman who started out humbly by selling traditional snacks to religious pilgrims. His business soon grew, and he expanded and diversified into industries including telecommunications, power generation, information technology, consumer goods, and logistics. Today, Reliance Industries is India's largest private company and is listed on the Fortune 500. Ambani's son now runs Reliance and is one of India's wealthiest people; Mukesh Ambani, 65, is worth $92.5 billion, according to Forbes.

2. Jehangir Ratanji Dadabhoy Tata

Jehangir Ratanji Dadabhoy Tata or JRD Tata (1904–1993) was born in Paris to Indian and French parents. He was trained as an aviator in Europe and later became India's first commercial airline pilot. Working for the family business, TATA group, he set out on his own and built TATA Airlines, which ultimately became the modern Air India. By the time of JRD Tata's death, TATA owned nearly 100 different businesses across many industries. Notably, his automobile venture, Tata Motors , produces economical automobiles that nearly all working Indians can afford to own. JRD Tata is descended from Jamsetji Tata who founded the TATA group of companies in the mid-1800s.

3. Nagavara Ramarao Narayana Murthy

Nagavara Ramarao Narayana Murthy, age 75, is an Indian entrepreneur who co-founded IT giant Infosys (INFY) with an initial investment of 10,000 rupees, or just a few hundred dollars in today's terms. With a net worth of $3.6 billion, he is often referred to as the father of the Indian IT industry, serving as CEO of Infosys from 1981 until 2002, and then its chair until 2011. As of March 2022, Infosys has a market capitalization of around $104.7 billion.

4. Lakshmi Niwas Mittal

Lakshmi Niwas Mittal, 71, is an Indian entrepreneur who began his career working for his father's steel business. He later set out on his own, due to family infighting and created what is now one of the largest steelmakers in the world, ArcelorMittal (MT). As of May 18, 2022, ArcelorMittal has a market capitalization of $25.79 billion. Mittal himself is worth about $16.8 billion.