What Does The Entrepreneur Bring To The Economic Party?
By admin on Feb 18, 2010 with Comments 4
What did you ask him to bring? I make a pretty good chili; I could bring that if you like.
Filed Under: Featured
Entrepreneur Blog
… Big Business
money and opportunity, and competition, which drives a healthy economy
Let’s say that MANY more babies will be born next year in relation to this year.
An entrepreneur spots an imbalance…For next year, more baby food will be demanded, more baby clothes, more cribs, etc.
So the entrepreneur uses his saved capital to purchase resources (land, labor, factories, etc…)
He believes that these resources TODAY are cheap. But in the future, because of the demand that he forsees, they will be worth much more.
Hence, our entrepreneur will profit if he is correct. But if he is wrong, he will suffer losses.
If our entrepreneur is correct, not only will he profit, but he will also FIX THE IMBALANCE.
He will be supplying what is demanded most.
Were the entrepreneur not to spot the imbalance, were he not to risk his own saved capital, were he not to produce…there would have been a lot of babies WITHOUT the bare necessities of life.
An entrepreneur bring creativity, new projects and motivation to our economic party. Without them, there wouldn’t be any competition and our economy wouldn’t move forward. New companies and projects drive investors and their money because they want to make money off of their money no matter how risky a new idea, project or company may be.
brings more money to the ecomy