What is the socio-economic growth?
Socio-economic growth is the multidimensional process of social and economic development aspects within a society. It is measured with such as factors income levels, life expectancy, education, healthcare, level of employment, social equality, infrastructure development, and environmental sustainability. It is also considered a non-tangible factor such as self-respect, personal safety, freedom of association, etc. This concept covers not only economic prosperity but also the enhancement of overall social well-being and quality of living standards.
Entrepreneurs play a vital role in the socio-economic development of a nation. They initiate new and unique ideas and perceptions for the market product, a social progressive factor. They are founders and directors to change economic activities. They set up minds for beginners and provide guidelines as business persons.
Driving Forces of Socio-economic Growth
Socio-economic growth driving forces can be described as follows.
1. Employment Generation
One of the key aspects of socio-economic growth is the generation of productive employment. Employment creation not only generates income for people but also fosters economic participation, social integration, knowledge gaining, skill development, etc. Entrepreneurs are employed in various sectors directly and indirectly. Meaningful employment helps to reduce poverty and improves overall social status. Hence, entrepreneurship is the best remedy to resolve unemployment.
2. Utilization of Resources
All the available resources including human and non-human utilization status also refer to socio-economic development. Entrepreneurs provide the best way to use natural resources in a long-lasting way. Resources are prominent for the commencement of a business venture. It supports taking action in the business way. Cause of that business people create income and business growth in the society. In that way, they utilize proper resources to succeed in business and have a quality life.
3. Social Development
Socio-economic growth presents prominent results for social development. It increases various sectors of human welfare and well-being. It is the measurable factor for the development of a nation. Measuring indicators such as healthcare, employment, nutrition, social integration, living standards, etc. It covers also human behaviors and personal dignity. Social development presents reducing inequalities across different gender, casts, ethnicity, and socio-economic status.
4. Capital Formation
Entrepreneurship allows the mobilizing of unusable savings in the business sector in a profitable manner. They promote capital formation constructively. Public savings are not productive until they are put under continuous transaction in the enterprise. Entrepreneurs create different sectors for the investment of capital in a profitable way.
5. Export Promotion
The quality product of the nation in an economic manner in the international market helps to promote export in the competitive market. Using the best ideas, unique techniques and quality of goods and services provide the best placement in the market. The nation’s export trade is prominent for economic development. Import and export are ongoing processes for the nation. But for the nation’s development export promotion is important.
Affecting Forces of Socio-economic Growth
Some affecting forces of socio-economic growth create obstacles to development. It can be described as follows.
1. Human Resources
Human resources are one of the factors that influence entrepreneurship. Its number defines the availability of human labor. The quantity of human laborers is important as well as quality laborers are also important for the emergence of entrepreneurship. Skilled, trained, well-natured, and qualified human resources provide better success in the business sector.
They support their productivity in the venture from start-up to success level. Without their skilled efficiency quality goods and services could not be achieved. So, human resources hamper the socio-economic growth in various sectors.
2. Market
All the goods and services are introduced for customers or markets. The market is the place where entrepreneurs exchange their products with customers at different levels. As the market nature entrepreneurs produce proper goods as demand of the consumers. Market size and development of the market affect the development of entrepreneurship, and cause of that it influences in economic growth of the society.
Nowadays, customer demands quality products at an economical price. If national entrepreneurs cannot provide the demanded products at an economic price foreign products cover that market. Hence, for customer satisfaction and to make market status stable business person must produce quality products.
3. Government Policies
Government policies are another factor that affects entrepreneurship. The business person follows the different rules and regulations to run the venture. It helps to regulate the entrepreneurs but old and unsuitable policies hamper the business sector to run proper way. Government policies considered trade policy, labor policy, VAT policy, tax policy, market policy, monetary policy, etc.
4. Technology
Technology is used to produce goods and services in the market. It helps to increase the production of business. Nowadays, quality product is demanded by customers in that sense they will be introduced by useful and unique technology. To gain market status business person grabs modern technology as the labor base to make quality products in economic conditions. It helps to increase profit and reduce the cost of production.
5. Social Mobility
The high degree of mobility social and geographical affects entrepreneurship development. For better opportunities movement of people from rural to urban and even one country to another hamper the businesses. It creates challenges for entrepreneurs to understand the market demands and customer satisfaction.
Read more: Concept of Entrepreneurship
Read more: Concept of Entrepreneurs