Question

How do small businesses contribute to a nation's economy in terms of job creation and new industries and innovation?

Answer 1

SMALL BUSINESS AND THEIR CONTRIBUTION

Small business are business which require only small amount of capital to be started, the start uo capital is a lot lesser than a regular business.

Usually small business' are started up by young entreprenuers who are bubbling with ideas and genuinely want to make a change in the society. They first scan the environment and check for the needs and wants of the people where they will be setting up the business. Then they come up with innovative ideas to fulfill people's needs and wants in a way which will benefit the whole society.

Once the entreprenuer decides on all the above things, he then starts setting up the business in which labour is also needed, hence they provide job opportunities to people living in the area and this overall develops the entire area, as unemployement is eliminated and as the business keeps on growing, more job opportunities are made.

All of this contributes to the GDP of the country and develops the economy and also betters the living standard of the people where small business' is opened and slowly new industries of the same product are developed.

This is how small business contribute to a nation's economy in terms of job creation and new industries and innovation.