Question

Some people argue that “the only beneficiary of the entrepreneurial wealth is the entrepreneur him/herself” Do you agree? Why or why not?​

Answer 1

Answer:

I do not agree that “the only beneficiary of the entrepreneurial wealth is the entrepreneur him/herself.”

The entrepreneur may be the chief beneficiary when she is alive to reap the rewards of their entrepreneurial efforts.  But, she is certainly not the only beneficiary of the entrepreneurial wealth that she creates.  Nobody works in isolation.  When the entrepreneur commences her business, society as a whole benefits because any individual wealth created increases the wealth of the nation and the world.  She only gets the profit share of the created wealth.  Customers who patronize her services and goods also derive satisfaction of needs (utility or value).  The entrepreneur's wealth is also shared to the government in form of taxes.  Suppliers of primary goods and services also share in the wealth of the entrepreneur.  And employees of the entrepreneur also take a large share of the created wealth.

Explanation:

But, who is an entrepreneur?  She is somebody who assumes some entrepreneurial (first-time) risks in order to set up a business for the manufacture or provision of goods and services for the purpose of profit.  Her business may not be profitable in the short-run.  She can even lose tons of money initially until the profit stage sets in.  As she preserves, the profits will start rolling in, provided she had done her homework well.