Entrepreneurship plays an important role under the private enterprise system for a number of reasons:
Innovation: Entrepreneurs are able to create innovative and creative ways to develop the market and introduce new business ideas.
Competition: By breaking out on their own, away from established businesses and often stagnant markets, entrepreneurs increase market competition, a vital part of private enterprise growth and development. The skill of the entrepreneur is creating a "uniqueness" about their product or service, which appeals to individuals looking for something new and improved.
Inspiration: the success of an entrepreneur in a developing economy can provide impetus and encouragement to young, business minded individuals to break out on their own, and contribute to the economy by developing their ideas and prototypes.
The most economically mobile and prosperous societies in the world are unquestionably the ones which motivate and support entrepreneurs.
