Today we continue on the benefits made by entrepreneurship on the national economy. Your business has an effect on the national economy for the good. Read on and be encouraged to start making a difference.
4.Local Control and Accountability
Developing countries complain of exploitation by multinationals as most of the financial resources and profits leave the country. Politicians and activists were baying for the blood of executives from multinational banks e.g. Barclays and Standard Chartered, arguing that their activities were not benefiting the local economy, nor were they accountable to the Zimbabwean people. The rise of entrepreneurial local bankers created local control and accountability of banks. Similarly, it has been argued that overdependence on large conglomerates supported by international finance is unhealthy. An example is huge corporations which either slow down operations, withdraw investments or transfer manufacturing capacities to cheaper economies at will, especially when the local economy is in turmoil or there is political risk, as in Zimbabwe. The larger conglomerates may be affected by political decisions or legislature in their countries of origin.
5.Increased Tax Revenue for the State
The success and profitability of the banking sector, driven by the entrepreneurial bankers, contributed significantly to the national fiscus through taxes. Corporate, income, property, social security and sales taxes rose, to the benefit of the national economy. Inspired by the super profits in the banking sector, the State imposed a 5% banking levy on bank profits. Indirectly, as funding became available, people could afford to purchase more goods, resulting in increased sales tax. The improved revenue collection by local and national government from the entrepreneurial activity resulted in the government reinvesting some of these proceeds to improve the social and economic infrastructure e.g. in education and health.