Course : ENPR6143032 – INTRODUCTION TO ENTREPRENEURSHIP & BUSINESS

Year : 2022

The Importance of
Entrepreneurship and Business

Session 3 & 4
CILO 1 : Explain the importance of entrepreneurship and business in corporations

CILO 2 : Demonstrate the knowledge of entrepreneurship and business in dealing

with current business situations
The Importance of Entrepreneurship and
Business
Sub Topics
• Economic Advantages
• Social Advantages
Economic Advantages
Economic Advantages

• Entrepreneurship spurs economic growth by enabling us

to produce more. But it also spurs economic
development by enabling us to produce better.
• Entrepreneurs look for new and better production
technologies to raise productivity and create products
that are not just cheaper and more plentiful but more
useful and higher quality too.
The Role of Entrepreneurs and Businesses
in Improving the Country’s Economy
The Role of Entrepreneurs and Businesses
in Improving the Country’s Economy
1. Wealth Creation and Sharing
• By establishing the business entity, entrepreneurs invest
their own resources and attract capital (in the form of
debt, equity, etc.) from investors, lenders and the public.
• This mobilizes public wealth and allows people to
benefit from the success of entrepreneurs and growing
businesses.
• This kind of pooled capital that results in wealth creation
and distribution is one of the basic imperatives and
goals of economic development.
The Role of Entrepreneurs and Businesses
in Improving the Country’s Economy
2. Create Jobs
• Entrepreneurs are by nature and definition job creators,
as opposed to job seekers. The simple translation is that
when you become an entrepreneur, there is one less job
seeker in the economy, and then you provide
employment for multiple other job seekers.
• This kind of job creation by new and existing businesses
is again is one of the basic goals of economic
development.
The Role of Entrepreneurs and Businesses
in Improving the Country’s Economy
3. Balanced Regional Development
• Entrepreneurs setting up new businesses and industrial units help
with regional development by locating in less developed and
backward areas.
• The growth of industries and business in these areas leads to
infrastructure improvements like better roads and rail links,
airports, stable electricity and water supply, schools, hospitals,
shopping malls and other public and private services that would
not otherwise be available.
• Every new business that locates in a less developed area will create
both direct and indirect jobs, helping lift regional economies in
many different ways.
The Role of Entrepreneurs and Businesses
in Improving the Country’s Economy
4. GDP and Per Capita Income
• Data from the Ministry of Cooperatives and SMEs states
that in 2021 entrepreneurs in Indonesia contribute to
gross domestic product (GDP) of 61.97 percent or Rp. 8.6
trillion.
The Role of Entrepreneurs and Businesses in
Improving the Country’s Economy
5. Standard of Living
• Increase in the standard of living of people in a community is yet
another key goal of economic development. Entrepreneurs play
a key role in increasing the standard of living in a community.
• They lead to improvements in the quality of life of their
employees, customers, and other stakeholders in the
community.
• For example, automation that reduces production costs and
enables faster production will make a business unit more
productive, while also providing its customers with the same
goods at lower prices.
The Role of Entrepreneurs and Businesses
in Improving the Country’s Economy
6. Exports
• Any growing business will eventually want to get started with
exports to expand their business to foreign markets.
• This is an important factor of economic development since it
provides access to bigger markets, and leads to currency
inflows and access to the latest cutting-edge technologies
and processes being used in more developed foreign
markets.
• Another key benefit is that this expansion that leads to more
stable business revenue during economic downturns in the
local economy.  
The Role of Entrepreneurs and Businesses in
Improving the Country’s Economy
7. Community Development
• Economic development doesn’t always translate into
community development. Community development
requires infrastructure for education and training,
healthcare, and other public services.
• For example, you need highly educated and skilled
workers in a community to attract new businesses. If
there are educational institutions, technical training
schools and internship opportunities, that will help build
the pool of educated and skilled workers.
Social Advantages
Social Advantages

• A community that has a diversity of entrepreneurial

businesses is likely to be much more stable and relaxed
than one which is dominated by some large heavy
industry.
• Successful entrepreneurs are large investors in charities
and community projects. There may of course be a
strictly business motive behind that.
The Impact of Social Activities on Business

1. Stronger 2. Greater
Customer and Employee 3. Increased
Client Motivation and Creativity
Relationships Retention

5. Enhance Brand
4. Increased
Awareness and
Productivity
Reputation
The Impact of Social Activities on Business
1. Stronger Customer and Client Relationships
• Customers are increasingly holding businesses
accountable for the impact of their core operations and
look to buy from brands that are driving social and
environmental change.
• This is also true for B2B relations where a shared vision
around social and environmental goals is becoming
more important.
The Impact of Social Activities on Business
2. Greater Employee Motivation and Retention
• Current and prospective employees are actively seeking
out companies to work with who are like minded when it
comes to social enterprise.
• Employees are not just happy to know that the company
they work for has shared social and environmental
values, they are wanting to be an active part of that
change in terms of planning and contributing to
community activities and fundraising.
The Impact of Social Activities on Business
3. Increased Creativity
• When you demonstrate your company’s values and
passion through a social enterprise ethos, employees
will feel encouraged (and supported) to develop new
and better ways to do their jobs.
• The outcome being that employees feel empowered to
start contributing to the bigger picture.
The Impact of Social Activities on Business
4. Increased Productivity
• It goes without saying that a more motivated and
creative workforce will ultimately lead to great
productivity and in turn improved profits for the
business.
• A win-win in terms of business outcomes as well as
social and environmental outcomes.
The Impact of Social Activities on Business
5. Enhance Brand Awareness and Reputation
• In today’s digital era, social enterprises are gaining
exposure - and praise - for their social goals.
• Customers, employees and stakeholders feel good when
they are connected with companies that are helping
their community or the world at large.
• They will share their stories (good and bad) through
their own social channels while at the same time, telling
your story through social media can help you gain
awareness and build your reputation.
Thank You