Have you ever wondered what the 4 most important resources in any given economy are?
They go as follows:
1. Land – which includes all the natural resources that go along with it.
2. Labor- people have to work to get anything done, right?
3. Capital- probably not what you’re thinking; this category isn’t money! It includes tools and machinery, and any other productive item.
4. Entrepreneurial Ability- something unique and specific to people! Not everybody has this! Do you?
Isn’t interesting that any given economy must have entrepreneurs! All the resources in the world, including land, lumber, minerals, food, labor, and tools will create nothing without the entrepreneur. Those innovative minds create many of the luxuries that we enjoy today; without them, we’d be without everything!
So what exactly does an entrepreneur do?
An entrepreneur, by simple definition, takes the initiative in combining resources like land, labor, tools, and other items to produce some sort of service or product. They are the ones that start everything! If you don’t have an entrepreneur, no advances in society take place; thus, making it difficult for an economy to grow and improve.
An entrepreneur is also an innovator; or, in other words, somebody who creates from given resources. They collect what is available, and put it together to form something useful for all. If you have no creativity, you may not be fit for entrepreneurial tasks.
Also, one of the reasons why the entrepreneurial ability is such a scare resource is because the entrepreneur assumes ALL of the risk. What happens if the idea flops? What then? Does his or her family end up without means to survive? The greater the risk, the greater the reward! Look at people like Bill Gates, Benjamin Franklin, Thomas Edison, and Henry Ford- these are some of the greatest entrepreneurs and in order to bring us so many great things, these men had to risk everything!
It’s clear that society could not have an effective economy unless the entrepreneurial ability existed within its people.
If you have those qualities and have some ideas, don’t hesitate to create! Your contributions will promote change and improvement in an ever growing economy!