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State three economic reasons why entrepreneurship is important to the development of the Irish economy - Leaving Cert Economics - Question 5 - 2010
Question 5
State three economic reasons why entrepreneurship is important to the development of the Irish economy. (i) (ii) (iii)
Worked Solution & Example Answer:State three economic reasons why entrepreneurship is important to the development of the Irish economy - Leaving Cert Economics - Question 5 - 2010
Step 1
Creates employment
Answer
Entrepreneurship plays a crucial role in job creation. By establishing new businesses, entrepreneurs generate demand for workers, helping reduce unemployment rates. This not only supports individuals but also strengthens the overall economy by providing more disposable income.
Step 2
Encourages further investment
Answer
Entrepreneurs often invest their own finances into their ventures, and their success can attract additional investment from private and public sources. This influx of investment can drive further economic growth and innovation, as funds are directed towards enhancing productivity and expanding business operations.
Step 3
Generates revenue for the government
Answer
The success of entrepreneurial ventures leads to increased taxation revenue for the government. As businesses grow and thrive, they contribute to public finances through various forms of taxation, which can be reinvested in public services and infrastructure, enhancing the quality of life for citizens.