Entrepreneurs create jobs: Job creation, economic outlook and economic health. Every year, or every now and then, you’ll hear on the news about job creation. Where do jobs come from and how do we get more of them? In another blog post about entrepreneurs, I spoke about the decline of entrepreneurs (and those they employ), and how Carl Sagan warned of a foreboding of economic times in the United States as we became a service economy instead of a creation economy.
Back to the question: how do we create jobs and where do they come from?
What is an Entrepreneur?
A person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so.
Every business will need employees in time, and those entrepreneurs who start business will create jobs.
Entrepreneurship as a Mathematical Formula
Let’s say some how we incentive entrepreneurship : either through debt relief, loans or tax breaks, and perhaps all three.
Let’s assume 1,000 people started a business in all 50 states.
1000 * 50 states = 50,000
Those 50,000 people would need one or more employees, some 5 or 10. They would need software, hardware, supplies, manufacturing, etc.
This could create 50k, 100k, 500k jobs or more and will spur even more economic movement and need.
What Causes Economic Recessions or Depressions?
Money slows down, consumer confidence goes down, investments go down, business creation goes down, innovation goes down, health goes down – overall money supply or “money movement’.
If business go bankrupt, if people get laid off, if stocks take a huge loss, if there is a health crises or other type of crises, this can cause economic recession or depression – which can be prolonged by inflation or other money worries.
How Do We Prevent These Recessions and Depressions?
We encourage creation. We encourage innovation. we encourage health. We keep an eye on money movement and money supply. We give incentives to all people wanting to start businesses, go to school, or any form of learning.
How we achieve this is still left up for debate! This is where a democratic process comes into play. We talk about ideas and then we talk about solutions.
Why cant we have a economy which always does well?