Why Entrepreneurs Are Essential For Economic Growth?

Investing in a startup or starting the journey as an entrepreneur is always a challenge. Given the statistics that 90 per cent of startups fail and only fifty per cent of entrepreneurs are able to reach the fifth year with their business successfully. Moreover, the Coronavirus pandemic wreaked a crisis for startups and major firms. In such a scenario, one question that often plagues investors and venture capitalists is whether investing in entrepreneurs and their startups is worthwhile. 

Why Should Venture Capitalists Invest In Entrepreneurs? 

Despite the heavy risk that entrepreneurship poses, venture capitalists and angel investors like Mr Tej Kohli continue to invest in it for several reasons, like it offers greater rewards. With the rise of crowdfunding, early investment has become more accessible while lowering the overhead requirement of capital. 

Investing in entrepreneurs also enables venture capitalists and angel investors to diversify their investment portfolios. But more than these two and other benefits, entrepreneurship is seen to directly impact the economy of society and the nation. Visionaries like billionaire investor Mr Tej Kohli understand the value entrepreneurs add to innovation and the economy. 

How Is Entrepreneurship Related To Economic Growth? 

It has been estimated that startups created over 3 million jobs in 2020 despite the pandemic. So, how exactly entrepreneurship builds into accelerating the economy? Entrepreneurship starts with addressing the current pain points existing in the sectors and the industries, thereby working on new services and products. New employment is stimulated by it, thus accelerating economic development. 

Since entrepreneurship disrupts the current trends and encourages thinking out of the box, new developments are made. In the process, it opens new avenues for career development, training, and new jobs. Angel investors and venture capitalists often understand entrepreneurship’s impact on creating entry-level jobs where unskilled workers can learn to become skilled employees. In the long run, entrepreneurs give experience to the workers to venture into larger workplaces and businesses. 

Scholars have also pointed out that entrepreneurs give rise to a competitive market. When the government supports that, as done in the US, there is significant growth in the country’s domestic economy. Furthermore, Germany and Sweden benefited from the entrepreneurship trend that started during the 1970s, as it helped reverse the economic trend where individuals were trying to seek high-paying jobs in larger firms instead of creating jobs. 

Entrepreneurship and Sustainability 

With growing concerns over inequality, sustainability and social impact, many entrepreneurs are not focusing on creating businesses that have a positive social impact and their economic activity is sustainable. The rise of social awareness has led to entrepreneurs now attempting to create a sustainable world.

For instance, the death of George Floyd resulted in entrepreneurs looking for ways to combat systematic racism. On the other hand, the ‘Me Too’ movement has created a safer work environment for women and a thrust for equal pay for women in the entrepreneurial world along with inclusivity. 

The concept of leaving no one behind in the utopic entrepreneurial world is a boost towards not only forming a sustainable working environment for the employees but also improving the country’s overall economy. 

The Man Who Inspires Entrepreneurs & Social Change 

There are several venture capitalists and angel investors worldwide, but few like Mr Kohli and his Kohli Ventures. It is a vehicle for investment in a multitude of companies where he provides intellectual support and capital to startup companies. Mr Kohli is passionate about deep tech. As a result, he invests in growth-stage ventures in companies associated with machine learning, artificial intelligence, IoT, robotics, future bionics and esports. 

But Mr Kohli is more than just a venture capitalist; he is known for his philanthropic work. He has several foundations like Tej Kohli Cornea Institute, Tej Kohli Eye Foundation and Tej Kohli & Ruit Foundation. They all work tirelessly researching ways to eradicate cataract-caused blindness and create a sustainable world free of poverty. 

To learn more about philanthropist Tej Kohli and his venture investments, follow Mr Tej Kohli’s blog.