Based on the abstract and the statement above, examine the pros and cons of an entrepreneurs’ contribution to jobs and economic growth.

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
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Entrepreneurship is important to economic development. The benefits to society will be greater in
economies where entrepreneurs can operate flexibly, develop their ideas, and reap the rewards.
Entrepreneurs respond to high regulatory barriers by moving to more innovation-friendly countries or
by turning from productive activities to non-wealth-creating activities. To attract productive
entrepreneurs, governments need to cut red tape, streamline regulations, and prepare for the negative
effects of layoffs in incumbent firms that fail because of the new competition.

Entrepreneurs are equally, if not more, important when the economy is doing badly. When
unemployment is high and the economy is contracting or stagnating, dynamic entrepreneurship could
help turn the economy around. By developing novel products or increasing competition, new firms can
boost demand, which could in turn create new job opportunities and reduce unemployment.”

The contribution and non-contribution of entrepreneurs to the economy has both negative and positive
effects in terms of the impact it has on jobs and economic growth.

Based on the abstract and the statement above, examine the pros and cons of an entrepreneurs’
contribution to jobs and economic growth. 

 

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