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Entrepreneurship is important in the development of an economy - Leaving Cert Economics - Question 8 - 2010
Question 8
Entrepreneurship is important in the development of an economy. Explain the underlined term and state one economic reason why entrepreneurship is important. Explana... show full transcript
Worked Solution & Example Answer:Entrepreneurship is important in the development of an economy - Leaving Cert Economics - Question 8 - 2010
Step 1
Explanation:
Answer
Entrepreneurship is defined as the risk undertaken by an individual in combining various resources to create a product or service. It involves using creativity and innovation to identify market opportunities and bringing together the necessary inputs—such as land, labor, and capital—to produce goods or services with the goal of making a profit. This process not only contributes to economic growth but also fosters competition and drives progress in various sectors.
Step 2
One economic reason why entrepreneurship is important:
Answer
- Creates employment: Entrepreneurs need a workforce to produce goods and services. By starting new businesses, they not only create jobs for themselves but also for others, which helps reduce unemployment and stimulates economic activity.