Entrepreneurship Fuels the Economy

In recent years there has been increasing recognition of the pivotal role played by the entrepreneur in economic development. According to the respected economist William Baumol the entrepreneur is “an indispensable component of growth and prosperity.”

Entrepreneurship is not a phenomenon limited to a particular type of country or demographic group. A recent Global Entrepreneurship Monitor research project studying entrepreneurial activity in more than 40 countries - both developed and emerging economies - encompassing over two-thirds of the world’s population and over 90% of the world GDP – noted that although there are variants in the percentage of population involved in entrepreneurial activity, entrepreneurship is found in all economies. Indeed, the study recorded that 9% of the world’s adult population is actively attempting to launch a new venture at any given time.

Without doubt small and medium enterprises (SMEs) are a major driver in all economies and a major source of economic growth and dynamism. Constituting the dominant form of business organization across the globe and accounting for between 95% and 99% of enterprises depending on the country, SMEs are also major contributors to employment creation. They account for approximately 99% of all enterprises and two thirds of employment in developed countries and 97% of all jobs in emerging economies. Small businesses are also particularly important in bringing innovative products or techniques to market.

The role of the young entrepreneur is being increasingly recognized, especially with regards the creation of jobs. In Oman, youth entrepreneurship is of particular importance; we have a young population – 43% of us are aged 15 and under. We need to harness the talent and potential of our youth and give them the opportunities and support they deserve.

By supporting youth entrepreneurship Sharakah can give our young people choices to elect their career.

Indeed, a nation with a thriving culture of entrepreneurship will not only be competitive in the international arena but will also attract investment, talent and create a positive image thus generating success.