Entrepreneurship has the power to fundamentally change the way we live and work. The businesses and products they build can create wealth and foster innovation. These are only a few of the reasons why entrepreneurs are important to our economy.

Entrepreneurs create new businesses, and this in turn creates new jobs. This is part of a cycle where each feeds into and supports the other as the business grows and expands. The more successful a business venture is, the more individuals they can employ. This allows for the creation of higher paying jobs and positions. As new workers migrate to the area, more money floods into the community and this enrichens the state. This influx of residents pushes more tax money into the county and state, leading to improved infrastructure to accommodate the influx of new workers and their families.

Entrepreneurs add to the national income by generating new wealth. Many existing businesses eventually reach a ceiling of wealth, and this maintains the status quo. New and improved products and concepts enable new markets to be developed or existing markets to expand. Some of the expanding industries for aspiring entrepreneurs include app development, digital forensics, and mobile healthcare.

For instance, smartphones and apps have revolutionized how we work and connect. The ability to communicate, share, and learn on the internet on the go is a tremendous benefit. Smartphones are growing increasingly popular in China and India, joining the United States as the three largest drivers of smartphone saturation and growth. This globalization of technology means that entrepreneurs in many countries have access to the same tools and information as their counterparts elsewhere.

Entrepreneurs are also often at the forefront of social change. They break away from tradition by reducing reliance on obsolete systems and technologies. This creates an economic freedom that engenders a greater quality of life.

Another celebrated aspect is that entrepreneurship allows would-be business owners to break away from cultural and social norms. This carries over into the traditional business realm. We live at a time when many call for greater equality in business across gender lines, and entrepreneurship provides one avenue for introducing more businesswomen. Great ideas are great ideas regardless of the gender of the creator, and it ultimately makes for good business.

When entrepreneurs focus on making important processes simpler and less time consuming, this gives us more time to devote to work and other pursuits. As a result, we don’t have to worry where our necessities and luxuries are coming from.

There can be downsides as well. An example of entrepreneurship gone wrong could be evident when examining self-employment trends in Italy. In the past, Italy has suffered negative impacts to the economy because of how many self-employed individuals there are in comparison to traditional employed roles. Foundational and service oriented positions are vital to maintaining the infrastructure of our communities, and this goes to show that not everyone can be an entrepreneur.

Not every venture will succeed, and businesses often evolve during their early years. In the words of Alex Glassey, CEO of Glassey Technologies Inc, It’s ok to pivot. You’re not a failure if your business doesn’t go according to plan or your world changes. Just press pause and figure out what you can do differently.”

It is this drive to find stability that will be challenging going forward. If we understand the benefits and downsides of entrepreneurship in all its forms, we can strike a balanced approach that combines the positive impacts to the world economy and society. Everyone has a role to play, whether your position is foundational or entrepreneurial. It is only with the combined efforts of both groups that economies can truly thrive.