Entrepreneurs who
are business leaders look for ideas and puts them into effect in nurturing
economic growth and development. They play the most important role in the economic
growth and development of Indian economy. An entrepreneur plays a pivotal role
not only in the development of industrial sector of a country but also in the
development of farm and service sector. The major roles played by an
entrepreneur in the economic development of an economy are as follows.
1. Facilitates Overall Development
Entrepreneurs
act as catalytic agent for change which results in chain reaction. Once an
enterprise is established, the process of industrialization is set in motion.
This unit will generate demand for various types of units required by it and
there will be so many other units which require the output of this unit. This
leads to overall development of an area due to increase in demand and setting
up of more and more units.
2.
Induces Backward and Forward Linkages
Entrepreneurs
work in an environment of changing technology and try to maximise profits by
innovation. This induces backward and forward linkages which stimulate the
process of economic development in the country.
3.
Promotes Country's Export Trade
Entrepreneurs
earn valuable foreign exchange through increased exports. They produce goods
and services in large scale for the purpose earning huge amount of foreign
exchange from export. This ensures economic independence and development.
4.
Improvement in the Standard of Living
Entrepreneurs
adopt latest innovations in the production of wide variety of goods and
services in large scale that too at a lower cost. This enables the people to
avail better quality goods at lower prices which results in the improvement of
their standard of living.
5.
Increasing GDP and Per Capita Income
Entrepreneurs
are always looking out for opportunities. They encourage effective resource
mobilisation of capital and skill, bring in new products and services and
develops markets for growth of the economy. In this way, they help increasing
gross national product as well as per capita income of the people in our
nation.
6. Wealth Creation and
Distribution
It
stimulates impartial redistribution of wealth and income in the interest of the
country to more people and geographic areas, thus giving benefit to larger
sections of the society. Entrepreneurial activities also ensure equitable
distribution of income and wealthy by inculcating the spirit of
entrepreneurship amongst people thereby providing them self employment with
limited resources.
7. Reduces Concentration of Economic Power
Industrial
development normally leads to concentration of economic power in the hands of a
few individuals which results in the growth of monopolies. Entrepreneurs
contribute towards the development of society by reducing concentration of
income and wealth.
8. Balanced Regional Development
Entrepreneurs
promote development of industries. They help to remove regional disparities by
industrializing rural and backward areas. The growth of industries and business
in these areas lead to a large number of public benefits like road transport,
health, education, entertainment, etc. They help to reduce the problems of
congestion, slums and population in cities by providing employment and incomes
to them. They help to improve the standard of living in sub-urban and rural
areas.
9. Employment Generation
Entrepreneurs
provide instant large-scale employment to the unemployed which is an unending
problem of India. Small entrepreneurs provide self employment to artisans,
technically qualified persons and professionals.
As these enterprises grow, they keep providing direct and indirect employment opportunities to many more. In this way, entrepreneurs clear the path towards economic development of our country.
As these enterprises grow, they keep providing direct and indirect employment opportunities to many more. In this way, entrepreneurs clear the path towards economic development of our country.
10. Promotes Capital Formation
Entrepreneurs
promote capital formation by mobilizing the idle savings of our citizens. They
employ resources for setting up their enterprises. Such types of
entrepreneurial activities lead to value addition and creation of wealth, which
is very essential for the industrial and economic development of India.
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