explain why entrepreneurial activities are important to social development and progress of the economy

Entrepreneurial activities are important to social development and economic progress because they drive innovation, create jobs, increase competition, and improve productivity in the economy. Entrepreneurs introduce new technologies, products, and services that make life easier and meet social needs, which contributes to better living standards and social welfare. They challenge existing firms to become more competitive, thereby fostering economic growth and structural change by replacing less productive businesses with more dynamic ones. Furthermore, social entrepreneurship specifically aims at solving societal problems such as poverty, unemployment, and welfare, contributing to sustainable economic development by creating social value alongside economic value. By promoting innovation and creating employment opportunities, entrepreneurial activities support both social well-being and the expansion of the economy, making them key to progress and development.