Accordingly, “development does not occur spontaneously as a natural consequence when economic conditions in some sense are right. Entrepreneurs act as catalytic agent for change which results in chain reactions. Not only does an increase in the number of firms enhance the competition for new ideas, but greater competition across firms also facilitates the entry of new firms specializing in a particular new product niche. Thus, an entrepreneur is the creator of wealth. Glaring examples of such cases can be seen all over the world. Entrepreneurs decide how to combine factors of production to create new goods and services. Organising of Society’s Productive Resources: The important role of entrepreneurship is the optimum uses of productive resources of the country for the benefits of the people. Entrepreneurs ensure overall development of an economy: The activities of the entrepreneurs can influence all the sections of the economy. Well developed countries are more interested in entrepreneurs than people in white collar jobs. Now with the help of job, entrepreneurs can ensure more wealth creation by utilising untapped natural and human resources. Against this backdrop, entrepreneurship development helps provide economic opportunities for setting up enterprises which in turn become economic generation entities. Ask for details ; Follow Report by Sushantkumar8291 02.03.2019 Log in to add a comment Entrepreneurs play an increasing role in the keeping the economy stable. Producers decide what to make for consumers, which guides the economy. Hence Schumpeter described entrepreneurship as a process and entrepreneurs as innovators who use the process to shatter the status quo through new combinations of resources and new methods of commerce. Effective Utilization of Resources: Entrepreneurship is all about putting to better use the resources which are considered to be of low value with an aim of earning income. Answer Save. Why Narasapura companies prefer branch office space in KR Puram, KR Puram - Bangalore's next tech park zone for IT jobs, Employee Engagement Tips Where Business meets Leisure, Small business income guide - Pros and cons of salary vs profit, Evoma Business Center, "The Address", 1st Floor,
An entrepreneur, thus, brings about frequent changes in the production process, marketing strategies, technology, etc., to improve the quality of the product or service. A big problem in most developing countries today is unbalanced or uneven regional development. Entrepreneurs can contribute towards capital formation: The gross capital formation in India for the year of 2009-10 was 36.5% of the GDP and 35.12% of GDP 2012-13. Share Your PDF File
Community development requires infrastructure for education and training, healthcare, and other public services. If innovation drives productivity, what drive… They create goods and services and improve the living standards of people in a country. What role do entrepreneurs play in economics? Provide Diversity in Firms 12. This is … By increasing the supply of steel, the plant facilitates the growth of machine building, tube making, utensil manufacturing and such other units. Anonymous. Augment the Number of Enterprises 11. Consumers decide what they need and want to buy, which guides the economy. Economic Roles of Entrepreneur Bearing the risk of failing in business. The entrepreneur acts as a trigger head to give spark to economic activities by his entrepreneurial decisions. Entrepreneurs help to remove the regional disparities in the economic development of areas. Mobilizing the revenue of the organization properly. Development of New Production Technique and a Few Others. Technical progress alone cannot lead to economic development, unless technological breakthroughs are put to economic use by entrepreneurs. Your email address will not be published. Entrepreneurial activity, creates generation employment opportunities. The industrialisation of a country and its pace of economic development depend on the entrepreneurs. These changes in due course lead to better products and affect the welfare of societies. This is an important ingredient of economic development since it provides access to bigger markets, and leads to currency inflows and access to the latest cutting-edge technologies and processes being used in more developed foreign markets. Economic Development. Entrepreneurs can play a vital role in enhancing the standard of living of the people by adopting latest innovations in the production of wide variety of goods and services. Entrepreneurship, as defined, essentially consists in doing things that are not generally done in the ordinary course of business routine”. They give an organization its momentum. An entrepreneur comes up with ideas of how to use what others may consider waste. They do this not just by creating jobs, but also by developing and adopting innovations that lead to improvements in the quality of life of their employees, customers, and other stakeholders in the community. The fact remains that the potential of the market constitutes the major determinant of probable rewards for entrepreneurial function. Entrepreneurs produce goods and services in large scale for the purpose of earning huge amount of foreign exchange from export. Now people have begun to realise that for achieving the goal of economic development, it is necessary to increase entrepreneurship both qualitatively and quantitatively in the country. 1. Community development requires infrastructure for education and training, healthcare, and other public services. 8. 2. An entrepreneur may also be motivated by non-financial factors, such as independence to work for themselves or to choose the hours and not have to listen to another boss. Some of the roles of entrepreneurs are:- 1. James Burna observes that an entrepreneur is the organiser of society’s productive resources. Entrepreneurs help in channelizing their savings and savings of the public to productive resources by establishing enterprises. It involves the degree of mobility, both social and geographical and the nature of mobility channels within a system. A capitalist economy has, in the extreme aggregate, a theoretical level of infinite demand (stay with me here). Frank Young describes entrepreneur as a change agent. Entrepreneurs can help reduce unemployment: Unemployment Rate in India averaged 7.32 percent from 1983 until 2013, reaching an all-time high of 9.40 percent in 2009 and a record low of 4.90 percent in 2013. This mobilizes public wealth and allows people to benefit from the success of entrepreneurs and growing businesses. Such type of entrepreneurial activities lead to value addition and creation of wealth, which is very essential for the industrial and economic development of the country. Photo: World Bank. Ask for details ; Follow Report by Sushantkumar8291 02.03.2019 Log in to add a comment What do … He innovates and identifies the possibility of producing new products on the basis of innovation. This enables the people to avail better quality goods at lower prices which results in the … Export of goods and services on a large scale help in the process of earning of scarce foreign exchange for the country. 2. Economic development doesn’t always translate into community development. 1.1 Ways Entrepreneurs Contributed to the Company and Examples According to traditional models, entrepreneurs create new businesses in response to meet needs and demands in the market (Ed Sappin,2016). Entrepreneurs create the businesses that produce products and services that meet the wants and needs of consumers. Entrepreneurs Spur Economic Growth New products and services created by entrepreneurs can produce a cascading effect, where it stimulates related … The entrepreneur acts as a trigger head to give spark to economic activities by his entrepreneurial decisions. (3) Creation of Employment Opportunities: (4) Promotion of Balanced Regional Development: (8) Encourages Backward and Forward Linkages: Role of Entrepreneur in Economic Development –, A big problem in most developing countries today is unbalanced or uneven regional development. Their activities generate enthusiasm among the followers. 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