The following are some of the benefits of entrepreneurship to the economy;

It provides a productive outlet for skills of enterprising and business people. In other words it gives chance for people to put their business skills and knowledge into use.

It is a significant contributor to the economy in terms of goods and services offered; The goods and services offered by entrepreneurial ventures contribute to the overall national income.

Creation of jobs at a relatively low capital cost especially in the first growing service sector. It is easy to start up an entrepreneurial business because it requires little capital and therefore all classes of people can participate without discrimination.

It enables development of a pool of skilled and semi-skilled workers who are the base for industrial expansion. The people who are employed in majority of entrepreneurial ventures do not have the skills but they are trained and equipped with the skills in their areas of operation.

Entrepreneurship is a source of innovation in products, services, techniques and process. It helps the economy to reduce on the problem if of BOP.

Creating demand and supply as well; Entrepreneurs identify an opportunity in the market exploit it in terms producing goods and services needed and even creating demand for such goods consistently.

Contributes to increased participation of all communities in the economic activities in the country; This is because to start an entrepreneurial venture does not require a lot of capital so even the low income people can easily participate.

It offers excellent opportunities to examine one’s managerial and entrepreneurial capabilities while running your own venture;

It encourages a culture of saving among the people in the country. Generally in business sense for an entrepreneur to successfully develop and grow it requires a smart saving culture while reinvesting the savings to promote your business growth.

§  They account for over one-half of paid employment

§  Creating jobs at relatively low cost jobs

§  Providing a vehicle for introducing a more equitable income distribution.

§  Developing a pool of skilled and semi-skilled workers.

§  Improving forward and backward linkages between economically, socially and geographically diverse sectors of the economy.

§  Adaptability and flexibility to market changes.

§  Improving forward and backward linkages between economically, socially and geographically diverse sectors of the economy.

§  Providing opportunities for developing and adapting appropriate technological and managerial approaches

§  Increasing mobility for the improved development of natural resources

§  Contributing to increased participation of indigenous Kenyans in the economic activities of the country

§  They provide a productive outlet for expressing the entrepreneurial spirit.

§  Offering excellent opportunities for entrepreneurial and managerial talent to mature

§  Supporting industrialization policies that promote rural-urban balance.

§  Promoting special sub-contracting arrangements and acting as ancillaries to large-scale enterprises 

§  Creating demand and supply.

§  Where there are shortages of capital, managerial resources and skilled labor, the promotion of SMEs is an important approach to economic development.

§  Large-scale public and private enterprises are not flexible and adaptable. They can’t easily innovate as SEs. They are also capital intensive. As such, they cannot create jobs easily as SEs do. 

§  Tackling balance of payments problems

§  Achieving growth in key industrial sectors

§  Curbing inflation

§  Achieving social justice and equality

§  Entrepreneurship formulates venture ideas, identifies potential and profitable areas of market entry.

§  Mobilizes venture capital; combines often factors of production

§  Creates markets through advertising and other means, and

§  Most importantly, in Schumpeterian sense, brings about technological change by undertaking creative and innovative activities

§  Different levels of economic development of various countries of the world are said by some to be accounted for by the differential supply of entrepreneurship