Key role entrepreneurship plays in the 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.

   Entrepreneurship will not solve all the problems of a disintegrating community, but entrepreneurs do offer some solutions. They have a reputation for being innovators and job creators, and they provide benefits to society.

   What are the benefits of entrepreneurship to society?

   Entrepreneurs Are Innovators

   Technology is rapidly changing the fabric of the nation's workforce. Old, blue-collar manufacturing jobs are declining, and other occupations simply don't exist anymore. Remember telephone switchboard operators, movie film projectionists or elevator attendants?

   Entrepreneurs observe these changes and step in to fill the voids. They see the negative consequences and the losses of some occupations caused by technology, but they sense opportunities in the new landscape. As a result, entrepreneurs innovate. They create new products and services that advances in technology have made possible.

   Look at what Steve Jobs did. He knew that everyone liked music, and he suspected people would like to have their own personal collection to carry around. Hence, the iPod. Apple sold millions of iPods and went on to develop more related products.

   Like Steve Jobs, entrepreneurs don't stop with just innovating one product or service. They find related products. They grow by developing new markets. In the process, they hire more employees.

   Nobody likes to pay high hotel rates, right? Some people wouldn't mind making a little money renting out their home, cottage or room. The founders of Airbnb saw this need and found the opportunity to fill it. They match homeowners with people who want to rent something short term.

   Airbnb now has an inventory of over 800,000 properties located in 34,000 cities, and they have expanded by adding experiences. Paddle down a river to local breweries in North Carolina or take a photoshoot on the Brooklyn Bridge in New York City. Airbnb stirs the imagination of renters and property owners in ways they had never considered.

   Innovators look for consumers' needs and find ways to fulfill them. It's this innovation that creates employment.

   CONCLUSION

   Entrepreneurship is vital for any country’s economy as it supports the contribution of the government in the provision of goods and services. It is therefore important that Kenya, currently at position 92 in the global ranking for ease of doing business, puts in place measures that support establishment and development of business ventures so as to improve the contribution of entrepreneurship to the economy.