Entrepreneurship is the ability of a risk manager to optimize all available resources, whether material, intellectual, time, and his ability to produce a product or business that is useful to him and to others. Currently, the government is intensively conducting entrepreneurship development so that Indonesian youth can improve their quality through entrepreneurship. No matter, the government is also willing to provide loans for small and medium business capital. This is done by the government to improve the welfare of the community. Here is the Importance of Entrepreneurship Development in Indonesia.
1. Reduce the rate of unemployment
In line with the increasing number of open employment, the absorptive capacity of educational graduates or unemployed who have not yet got a job. Unemployed will get job activity and earn income, at least can finance their own life.
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2. Improve the economic level of a region
If there is a positive activity and stable entrepreneurship, it will directly provide economic value to the surrounding community. This entrepreneurial activity will certainly require a workforce that can be taken from individuals who are in the vicinity of the business area. With the absorption of labor in a region, the economic activity is increasing. The income that earned also increases. Next, ultimately improve the economic level of both the business owner and the labor that is around it.
3. Improving economic prosperity
The people who initially does not work, financially means less in terms of economic ability. If an unemployed person then works, there would be positive impact on financial ability. It is because income is a result of work. Someone earns a living, at least for himself so that it does not become the burden of others such as parents or family. For the owner of the business activity, if the entrepreneur activity is growing, the impact is on the turnover of its production. If the business turnover increases then the gain is also increased. This gives an impact on the increase one’s income level.
4. The various of employment
As entrepreneurial activities grow, the types of business will also be more diverse. The more types of fields of business, the more the types of skills or abilities a person must have in order to grow his business. And this ultimately then opens the kind of job field with the diverse skills required by the owner of the business activity.
5. Reduce the rate of criminal
The occurrence of many crimes and social ills in the community is usually associated with the number of unemployed. Crime actions can occur triggered by economic motives. A person has evil intentions because they have no income, so that when they meet their needs, they are committed by committing a crime. Social diseases in the community can be minimized, because the criminals already have a container to do the work and channeling energy toward a more productive and economic value.
6. Increasing the number of job findings
With the growth and development of entrepreneurial activities, the availability of seminars increases. Many entrepreneurial people end up needing additional manpower to fill certain parts of the position. The impact of his escort must be related to the economic value associated with one’s income.
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7. Opening the various vacancy
As entrepreneurial activities grow, the types of business will also be more diverse. The more types of fields of business, the more the types of skills or abilities a person must have in order to grow his business. And this ultimately then opens the kind of job field with the diverse skills required by the owner of the business activity.
8. Building the creativity
By entrepreneurship, a person would be creative to create a different product that has a great possibility to be sold out in the market. Indirectly, entrepreneurship will teach someone to strengthen their creativity of creating a product. They would be a hard thinker to what should they do to make their product becomes well-sold in around the people. An entrepreneur would observe what the good things that are trending and going to be best seller today.
9. Improving the mentality
An entrepreneur should have a great mentality. They are required to be steel-minded and have the determination and intention that is strong enough to realize the business empire they will build. A spoiled mentality will not get you through the situation when you are treated to the surprises above.
Consider the story of Thomas Alva Edison. He is an innovator, inventor, and one of the successful businessmen who ever lived in the 20th century. He had to go through thousands of failures before he finally managed to create the world’s first incandescent light bulb. In the end, let alone besides the tenacity and mental steel that made Edison successfully pocketed 1,093 patents?
10. Practicing the marketing strategy
Practicing the marketing strategy means you as the entrepreneur has to master the skills how to negotiate with other people. The skill of communications of an entrepreneur could not be doubted again. To know the needs and wants of the customer, must first be market research or marketing research. Market research should be directed to the needs of the consumer, for example what goods or services the customer wants and needs, how many, what quality, who needs them, and when they need them.
Implementation of marketing strategy is highly dependent on the circumstances of the existing market competition environment from day to day. Success in market segmentation is highly dependent on the potential that describes the demand from the competitive environment.
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11. Reducing the number of poverty
Entrepreneurship is again a hot topic as it contributes to eradicating the poverty rate in the world, especially in the Asia Pacific region. The increasingly severe domestic market, coupled with the massive exploitation of small and medium business units bring fresh winds to poverty alleviation in the Asia Pacific region. A tangible support reflects the significant role of entrepreneurship in improving the region’s economy. A concept of poverty reduction with entrepreneurship needs to be improved. This is the important role of entrepreneur in eradicating poverty.
12. Practicing the self and time management
Understanding business and business management is the process of managing to create something new (other alias different from existing ones), by using a capital either time, energy or money along with risks that may occur with the aim to achieve satisfaction, profit and personal freedom. For that reason, in entrepreneurship, it is very important to encourage us to manage self-management and time as well.
13. Learning economy in a real life
Entrepreneur is a man who dares to strive independently by deploying all resources and efforts including the intelligence of recognizing new products, determining new ways of production, preparing operations for the procurement of new products, marketing them, and managing the capital of operations to produce something of higher value. All of those skills are what that learnt in economy. That is why to be entrepreneur means practicing the economy in a real life.
Those are the importance of Entrepreneurship Development in Indonesia. This program is really good for supporting Indonesia economic growth. If this can run well, Indonesia would be one step closer to become developed country.
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