Economic Literacy in Entrepreneurship

Entrepreneurship does not happen in a vacuum. But in the context of national economic policies. However, with the advent of technology, traditional business setups are fast evolving into the global context to suit the global digital economy. At Holistic Literacy Empowerment, we believe that as an entrepreneur, you cannot start a business in any economy without basic literacy in national economic, development, and budget policies. Economic literacy prepares you for the fast-evolving world where the traditional national economy is fast evolving into the global digital economy. It will help you make informed economic choices as an entrepreneur in a fast-changing world. In a digital economy of globalization, international markets, and worldwide competition and collaboration, you as an entrepreneur must be well-informed about basic economic concepts and principles for context and relevance in your entrepreneurial business pursuits and execution.

What is Economic Literacy?

It is the ability to read and understand economic concepts like scarcity, supply and demand, incentives, trade, opportunity cost, and economic systems to make informed decisions as an entrepreneur, especially in the present-day digital global economy. So, it is the ability to identify and evaluate those concepts and relate them to your finances, the economy, and political systems. So that you can read and understand economic conditions in the context of your nation’s business landscape and how it affects your national or internet entrepreneurship pursuits. That will enable you to understand, discuss, and respond to the events that affect your economic environment.

Why You Need Basic Economic Literacy as an Entrepreneur

Businesses are meant to promote all the relevant policies and operate within their context to make the world a better place to live, learn, work, and do business for everyone. Therefore, as an entrepreneur, you should play a part in dancing to the same tune as spelled out in the drafted national economic development policies. And promote them to the wide world. The thrust of this blog post is that any entrepreneur should strive to adopt holistic principles in whatever they do, say, or practice in their business enterprise for the benefit of all concerned; themselves, their family, their community, the society, the nation, the wide world, and the universe. That is being holistic in your thinking and practice. This holistic mindset will promote ethics and integrity in all business dealings. Here are the main terms that are an introduction to having basic Economic literacy as an entrepreneur. 

The Economy:

The economy is the entire network of producers, distributors, and consumers of goods and services in a local, regional, and national community. It is the process or system by which you produce, sell, and bring goods and services into a country or region to promote trading. The economy is the wealth of a particular country realized from its commercial, industrial, and trading activities. You can see how related this process should be and how holistically you should do it. As an entrepreneur, you can get involved in the above sectors, like commerce, industry, or trade. Whatever you do or decisions or activities you get involved in will affect the whole picture of your country’s economy. Therefore, you should be holistic in any economic activity to benefit all concerned parties.

National government:

As an entrepreneur, you must know what your government is like and its role in economic development. A government is a group of people chosen by the majority through elections. These have the power to make and enforce the national laws of any country.

What do they do that can affect you as an entrepreneur?

They write public policy and ensure that people abide by it. However, in a global economy, these policies should be holistic for the benefit of all concerned. They also have executive, political, and sovereign power in the decision-making. Sovereign means that the government in power is the only one that can govern the country. Therefore, you as an entrepreneur must ensure that whatever you are involved in your business enterprise promotes what the government is trying to achieve and adopt a holistic mindset for the benefit of all concerned.

The three functions of the state:

Legislative: [Legislature] That refers to the writing and passing of laws. It is the parliament that holds the Legislative power.

Executive: This section of government is responsible for making decisions and implementing the law. [Presidency / Cabinet]

Judicial: That refers to the judges in courts of law who make decisions according to the Constitution. It is important to note here that, in any country, The Judicial authority is independent and separates its mandate or function from the state for it to be free and unbiased.

  • As an entrepreneur, you should be well versed with where the laws and regulations that will affect your business come from or how they come to be stipulated.
  • Every country you might find yourself trading with has its rules and regulations as stipulated by the [its own] government.
  • Generally, most trade laws are more or less the same in most states. However, they should be more holistic to promote the whole continent and global trading.

The National Policy:

It is a broad course of action or statement of guidance adopted by the government at the national level to pursue fulfilling national objectives or goals. This group of agreed laws and regulations make up a constitution which is the supreme body of law of the countryThe national policy should be holistic for the benefit of all concernedIt must holistically guide people like you as an entrepreneur to help the government achieve these five most common national goals.

The five important goals:

  • Growing the economy
  • Distribution of resources in a fair and equitable way
  • Maintaining stability in price changes
  • Reducing unemployment
  • Ensuring low inflation rates

The three levels of the state:

National Level: That is for serving a nation as a whole, for example, your own country.

Provincial Level: That is for serving a particular province within a nation.

Local Level: That is for serving a particular area, especially near your home or workplace.

As an entrepreneur, you must know how the government’s decision serve you at the national, provincial, and local level and how whatever you do in your enterprise impact people’s lives at the local and national level. That way of thinking will promote holistic practice in your business dealings. Be reminded also to cultivate a global mindset. Think local, think global with a holistic mind to contribute and make the world a better place to live, learn, work, and do business for everyone.


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