Mary Gormley, Head of Entrepreneurship
Why does entrepreneurship matter for the economy?
Have you ever wondered why entrepreneurship is important? It’s because entrepreneurship is more than starting a business and making money. Entrepreneurs are the people who spot opportunities, take risks, and help our economy grow in ways that matter to everyone.
Here are five reasons why entrepreneurs are so important for Northern Ireland’s economy:
1. Entrepreneurship boosts productivity
You might have heard the quote from Nobel Laureate Paul Krugman: “Productivity isn’t everything, but in the long run, it’s almost everything.” That’s because when businesses, especially new ones, find better ways to do things, everyone benefits. Entrepreneurs bring fresh ideas and push other companies to improve their game. In Northern Ireland, we’re still catching up with the rest of the UK and Ireland when it comes to productivity, so encouraging more people to start businesses and improve our sectors can really help us move forward.
2. Entrepreneurship drives innovation
Entrepreneurs don’t accept the way things are – they look for new and better ways to solve problems. Whether it’s coming up with eco-friendly products or using the latest tech, entrepreneurs are often the first to try something different.
The Global Entrepreneurship Monitor 2024/2025 report found that a significant proportion of entrepreneurs across economies consider and prioritise sustainability impacts, even under the pressures of early business stages. This is why entrepreneurs keep our economy modern and competitive, especially in fast-growing areas like sustainability and digital technology.
3. Entrepreneurship creates jobs
Did you know that almost all businesses in the UK are small businesses or start-ups? A total of 99% of the business population in the UK and Northern Ireland are micro enterprises or SMEs. That means most private sector jobs come from entrepreneurs. When someone starts a business, they often need to hire people, which creates jobs and helps more people earn a living. This is especially true in industries that are always changing, like tech and services.
4. Entrepreneurship encourages businesses to be more competitive
Competition is good for everyone. When new businesses enter the market, they challenge existing companies to do better, whether that’s by offering better prices, new products, or improved services. This kind of healthy competition means customers get more choice and better value, and it pushes everyone to keep improving.
5. Entrepreneurship grows the economy
All these things – higher productivity, more innovation, new jobs, and increased competition – create a stronger economy. Entrepreneurs help our economy grow and adapt to change.
Starting and growing a business isn’t easy. Entrepreneurs need support, advice, and sometimes a bit of funding to get going and keep growing, especially in today’s economic climate, where things are more uncertain.
How we’re helping entrepreneurs access the support they need
Finding how to access all the support that is available can seem daunting in itself, so visit investni.com and nibusinessinfo.co.uk to find out more about the supports Invest NI and others might be able to offer to get your business off the ground or help it grow.
About the author
Mary Gormley is a Fellow of the Institute of Chartered Accountants in Ireland (ICAI) with over 30 years’ experience across private and public sectors, supporting entrepreneurs and helping new businesses thrive in Northern Ireland.
As Head of Entrepreneurship at Invest NI, she leads Innovation Driven Entrepreneurship Initiatives and works closely with stakeholders to promote and grow innovative enterprises.
Comments