List 3 benefits of entrepreneurship to the economy of your country and explain why they are important.
New businesses:
New businesses create jobs hence national level of unemployment will decrease. This is important because it creates wealth to society. They also bring more choices to consumers in the country. New businesses will also create competition with larger firms. This keeps the price low and prevents monopoly from big firms.
Economic growth:
Entrepreneurs also seek to increase outputs and efficiency, hence increasing the country's gross domestic product, which is a sign of economic growth. This means that the living standards of people will increase and the government will receive more tax to spend on social projects and infrastructure.
Innovation:
Entrepreneurship will also bring innovation ideas and technological change to their businesses, thus giving the economy more dynamic. These changes can create a domino effect and make businesses change altogether to be more competitive and advance in their sector of production.