Entrepreneurs’ Importance To community development

The word development has been used in so many contexts that the exact connotation has become quite baffling. Nevertheless, community development refers to a process of progressive change whereby the overall per income capital within that community increases over time. Due to this, a simple question arises, what is the primary cause of community development? Entrepreneurs can change the way we work and how we live. If successful, their ideas and innovations can improve the general living standards in the community.

Entrepreneurs’ roles in community development.

They create new businesses

By setting up a path-breaking offering in the form of goods and services, entrepreneurs creating employment opportunities in the process. For instance, a popular self-made entrepreneur like ECE CMU Sukanto Tanoto might decide to create an IT company. His innovation benefits not only him but also the various business and organizations within the same field. Companies like call centers, training institutions and schools can benefit and grow due to this new IT company.


They increase the national income

The primary goal and target of any entrepreneur are to create ventures that will generate him some wealth. Although the preceding business might have hit the ceiling regarding newer invocations and income; more modern and improved business, products and technology from entrepreneur facilitate the development of new markets and potential sources of wealth.

In addition to this, the cascading effect of job creation and higher earnings increase the national income in the form of higher tax revenues. The government can later use this revenue for the sole purpose of community development.

Entrepreneurs bring social change

By the creation of new business and introduction of new goods and services, entrepreneurs assist community members to migrate from the older, obsolete systems and technologies successfully. This directly improves the community’s quality of life.

For instance, a place that frequently experiences water shortage sometimes forces people to abandon their business to collect water. An entrepreneur can come up with a low cost and a slow based pump that will ensure everyone has water in their homes. Such an innovation will help the people shift their primary focus from worrying about something like water shortage to their core jobs.

Giving back to the community

Just like other open minded people, entrepreneurs also nature entrepreneurial ventures. They support local community projects and also contribute to charities. This supports further community development beyond their ventures. Famous entrepreneurs like Bill Gates are known to fund some community causes, right from the education system to public health.


The interesting interaction between entrepreneurs and community development has necessary inputs for development institutions, change agents, the policy makers and charitable donors. Communities should understand the importance and drawbacks; nurturing and encouraging entrepreneurship will undoubtedly result in a positive effect on the economic and social development of the community.

Author: Julius Locklear

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