In a country like the Philippines where unemployment is rising and people are having difficulties getting by, entrepreneurs are one of the important assets to the Philippine economy. Not only in the Philippines but in any country of the world, entrepreneurs are considered to be very important, especially for the economy.
Since governments cannot fund everything and provide employment to every citizen, entrepreneurs provide jobs to people, grow businesses, create unique products, provide services, and aid in circulating the money in society, all of the things that help improve a country’s economy and improve people’s lives.
Kickstart Ventures Vice President for Investments, Joan Yao, explains why The Philippines will mint the next Southeast Asian unicorns
Entrepreneurs should be given their due importance and value because they play a vital role in establishing the economy of a country. For a developing country like the Philippines, entrepreneurs are of so much importance because of the various reasons that we have discussed below:
Create jobs
Not only in the Philippines but in any part of the world, entrepreneurs help to provide jobs to all kinds of people in society. When you open a company, you open multiple job positions in your company starting from a security guard all the way up to managers and executives. Entrepreneurs create a source of income not only for themselves but also for people in society.
In the Philippines, only small and medium-sized enterprises (SMEs) accounted for more than 60% of all the jobs in the Philippines. This is a huge number and just because of these businesses, many people were able to get by. Without entrepreneurs, many Filipinos would be facing unemployment.
Start and grow businesses
Entrepreneurs start various kinds of businesses in the country and they grow the business right from scratch all the way up to the top. By starting and growing their businesses in the Philippines, Filipino entrepreneurs contribute a lot to the country’s economy. These businesses run by different individuals contribute massively to the country’s gross domestic product, which helps the country economically.
Not only that, if markets are too saturated, these individuals seek new markets for their products & services and even create entirely new industries. This can have a massive impact on the country’s economy.
Bring unique products and services to the market
Entrepreneurs are creative people who bring something special into the market. Unlike regular people, these people look for an active problem in society and bring the solution to that problem. They create simple products and services like Scrabble Word Finder that help people with playing board games as well as complex products and services that improve people’s life. Huge companies of the world like Microsoft, Apple, Tesla, Facebook, etc are also the work of hardworking entrepreneurs who introduced unique products and services.
Whether it is a clothing product, an online shopping platform, or a unique app like a food delivery app, it is always the entrepreneurs who are constantly looking to create new products and services that can improve the lives of people in society. In the Philippines, entrepreneurs are highly underrated even though they have made unique products and introduced services that have improved the lives of average Filipinos.
Make the economy more competitive
In the Philippines, entrepreneurs also play a major role in making the economy more competitive. When they start new businesses and ventures in different industries, they are encouraging other people to start similar businesses. In addition, they also compel old players in the market to reassess their operations, increase their value, lower costs, and become more efficient.
A competitive economy is considered good because it forces business owners to constantly bring out unique and innovative products to stay in the market. Entrepreneurs also play a huge role in attracting foreign investors to invest in the country. Foreign investment in any form or kind of business is always beneficial to a country’s economy. All of these things help to improve the overall economic condition of the country.
Generate tax revenue
Another way entrepreneurs contribute to the country’s economy is by generating tax revenue. When a business is successful and making good profits, it has to provide tax to the government for performing business and selling its goods & services. Successful businesses can generate huge tax revenue for the government. This tax is significant to the country’s economy since it can add directly to the country’s reserves and is used to fund public services like infrastructure, education, healthcare, etc.