When you launch your own business, the success of your venture can benefit others in more ways than you might think. Entrepreneurship creates jobs at every step of the chain, from the workers who make the products or provide the services, to those who sell and distribute them, to those who create the technology that lets you stay connected anywhere, to the marketers and advertisers who reach out to customers on social media, and even to those who work in industries that would never have existed without entrepreneurship.
While most of us would love to have our own business, starting one can be daunting. But with the proper research and planning, you can rest assured that your new business venture will only be beneficial, both in the short-term and the long-term. The ripple effect of entrepreneurship starts with creating employment opportunities that wouldn’t otherwise exist, thus offering higher wages and benefits to people who desperately need jobs or want to earn more money on their current positions. It doesn’t stop there though; in fact, it’s just getting started.
Learn more about how entrepreneurship creates employment with this look at the ripple effect of entrepreneurship.
Global Employment
According to a 2015 study conducted by The Global Entrepreneurship Monitor, an organization that tracks entrepreneurship trends worldwide, almost two billion people are unemployed. To create jobs for these workers, entrepreneurs must scale their businesses and hire. In other words, if we want more employment opportunities in our economy, we need more entrepreneurs. After all, every new business created means one less job opening at a corporation like Microsoft or Apple.
Small Businesses are a Bigger Part of the Economy
Even though these entrepreneurs and small business owners comprise less than 50 percent of all U.S. businesses, they employ more than half of America’s private-sector workforce. In fact, small businesses generate 70 to 80 percent of new jobs annually — a statistic that bodes well for American job growth and economic stability in general. And with so many baby boomers reaching retirement age over the next decade or so, entrepreneurship will become even more important as one way to fill those jobs. So if you are interested in working for yourself or starting your own business, it might be time to give it some serious thought. There are few guarantees in life — but having your own business is one of them!
Small Business Creates Startups
When you start a business, not only are you creating something from nothing, but you’re also giving other people jobs. These people may include investors and employees or subcontractors that you hire to do specific tasks. And even if they don’t work directly for your company, they’ll be part of your supply chain—which means that in time, your startup could create more jobs than just yours and your co-founder’s.
The Bottom Line
When you start your own business, you don’t just create jobs for yourself and your employees; you also create jobs for other people indirectly as well. This process is called the ripple effect of entrepreneurship, and it can have a powerful impact on communities. By hiring more people, expanding into new locations, and innovating new products and services, entrepreneurs have the power to create prosperity within their own circles of influence.
