The importance of Entrepreneurship in the development of an economy

 Entrepreneurship is the act of a person who makes money by starting or running businesses, especially when this involves taking financial risks. The skill obtained from such act is called "entrepreneurial skill".

  To begin with, entrepreneurship reduces the search for job and makes the youth involved in business which enable them to gain financial freedom and to employ workers in the business. It goes a long way in fostering competition which helps to promote efficiency in production. 

The existence of competition in the industries also assists in the emergence of innovations. The participation of individuals in economic activities through ownership of enterprises is an engine of economic growth in country. It reduces the reliance on importation of goods and services as a result of import-substitution and export-promotion strategies adopted by the entrepreneurial firms. Consequently, entrepreneurship creates more employment opportunities which decreases the youth unemployment crisis in a Nation.

    There are actually four distinct sources of cashflow. Each is quite different from the other, and each defines and determines a very different lifestyle, regardless of the amount of cash one earns. This is called the "cashflow quadrant": The "Employee" quadrant, The "Self-employed" quadrant, The "Business-owner" quadrant, and The "Investor" quadrant.

 For example, an employee earns money by holding a job and working for someone else or a company. The self-employed are people who earn money working for themselves, either as solo operator or through their own small business. A business owner owns a large business (typically defined as 500 employees or more) that generates money. Investors earn money from their various investments. In other words, money generating more money.

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   Many youth rely and find themselves in the "Employee" quadrant. While the "Self-employed" quadrant is the beginning of entrepreneurship, the "Business-owner" and "Investor" quadrants are the advanced stages of entrepreneurship. 

The overwhelming majority of developing countries have their citizens live, love and leave this life entirely within the Employee quadrant. Our educational system and culture train us, from the cradle to the grave, in how to live in the world of the Employee quadrant. 

The operating philosophy for this world is what youth probably learned, too, when they were growing up: Go to school, study hard and get good grades, and get a good job with benefits at a great company. As a result, the Employee quadrant is filled resulting to unemployment amongst the youth.

 Being a graduate does not guarantee a job anymore in these countries, and corruptions and illegalities among the youth have become rampant. The need for youth to digress from the thought of getting employed to becoming entrepreneur therefore becomes consequential. The establishment of governmental entrepreneurial institutions that will inculcate in the minds of the youth the entrepreneural dos and don'ts could not be overemphasized.