Role Of Entrepreneurship In Economic Development Essay Example

of entrepreneurs may be more in favorable opportunity conditions than in economies with relatively less favorable opportunity conditions.

Entrepreneurship and Economic Development Entrepreneurship helps in the process of economic development in the following ways:

Employment Generation

Growing unemployment particularly educated unemployment is the problem of the nation. The available employment opportunities can cater only 5 to 10 % of the unemployed. Entrepreneurs generate employment both directly and indirectly. Directly, self employment as an entrepreneur and indirectly by starting many industrial units they offer jobs to millions. Thus entrepreneurship is the best way to fight the evil of unemployment.

National Income

National Income consists of the goods and services produced in the country and imported. The goods and services produced are for consumption within the country as well as to meet the demand of exports. The domestic demand increases with increase in population and increase in standard of living. The export demand also increases to meet the needs of growing imports due to various reasons. An increasing number of entrepreneurism are required to meet this increasing demand for goods and services. Thus entrepreneurship increases the national income.

Balanced Regional Development

The growth of Industry and business leads to a lot of Public benefits like transport facilities, health, education, entertainment etc. When the industries are concentrated in selected cities, development gets limited to these cities. A rapid development. When the new entrepreneurism grow at a faster rate, in view of increasing competition in and around cities, they are forced to set up their enterprises in the smaller towns away from big cities. This helps in the development of backward regions.

Dispersal of economic

power

Industrial development normally may led to concentration of economic powers in a few hands. This concentration of power in a few hands has its own evils in the form of monopolies. Developing a large number of entrepreneurism helps in dispersing the economic power amongst the population. Thus it helps in weakening the harmful effects of monopoly.

Better standards of living

Entrepreneurism plays a vital role in achieving a higher rate of economic growth. Entrepreneurism is able to produce goods at lower cost and supply quality goods at lower price to the community according to their requirements. When the price of the commodies decreases the consumers get the power to buy more goods for their satisfaction. In this way they can increase the standard of living of the people.

Creating innovation

An entrepreneur is a person who always looks for changes. apart from combining the factors of production, he also introduces new ideas and new combination of factors. He always tries to introduce newer and newer technique of production of goods and services. An entrepreneur brings economic development through innovation. Entrepreneurship also helps in increasing productivity and capital formation of a nation. In short, the development of the entrepreneurship is inevitable in the economic development of the country. The Role played by the entrepreneurship development can be expressed in the following words:" Economic development is the effect for which entrepreneurship is a cause”