Role of Entrepreneurship in Economic Development Article shared by: Role of Entrepreneurship in Economic Development! The word development is used in so many ways that its precise connotation is often baffling. Nevertheless, economic development essentially means a process of upward change whereby the real per capita income of a country increases over a long period of time.
Entrepreneurs can change the way we live and work. But more importantly, millions from other sectors benefited from it. Businesses in associated industries, like call center operations, network maintenance companies and hardware providers, flourished.
Entrepreneurs Add to National Income Entrepreneurial ventures generate new wealth. Existing businesses may remain confined to the scope of existing markets and may hit the glass ceiling in terms of income. Additionally, increased employment and higher earnings contribute to better national income in the form of higher tax revenue and higher government spending.
This revenue can be used by the government to invest in other, struggling sectors and human capital. Entrepreneurs Create Social Change Through their unique offerings of new goods and services, entrepreneurs break away from tradition and indirectly support freedom by reducing dependence on obsolete systems and technologies.
This results in an improved quality of lifeimproved morale and greater economic freedom. For example, the water supply in a water-scarce region will, at times, force people to stop working to collect water. This will impact their business, productivity and income.
For a more contemporary example, smartphones and apps have revolutionized work and play across the globe. As the growth of China's smartphone market and its smartphone industry shows, technological entrepreneurship will have profound, long-lasting impacts on the entire human race. Moreover, the globalization of technology means entrepreneurs in lesser-developed countries have access to the same tools as their counterparts in richer countries.
They also invest in community projects and provide financial support to local charities.
This enables further development beyond their own ventures. The qualities that make one an entrepreneur are the same qualities that motivate entrepreneurs to pay it forward. The Other Side of Entrepreneurs Are there any drawbacks to cultivating entrepreneurs and entrepreneurship? Italy may provide an example of a place where high levels of self-employment have proved to be inefficient for economic development.
There may be truth in the old saying, "too many chefs and not enough cooks spoil the soup. Unregulated entrepreneurship may lead to unwanted social outcomes including unfair market practices, pervasive corruption, financial crisis and even criminal activity.
Promotion of happiness is increasingly seen as an essential goal. With too many entrepreneurs, levels of aspirations usually rise.ROLE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT The entrepreneur who is a business leader looks for ideas and puts them into effect in fostering economic growth and development.
Entrepreneurship is one of the most important input in the economic development of a country. Global development is entering a phase where entrepreneurship will increasingly play a more important role.
There are at least three reasons for this, each particular to certain types of countries. Firstly, in the West, the managed economy of the ss, characterized by reliance on big.
The entrepreneurs are the lifeline of a country’s economic activities. The economic development of a nation largely depends on the pace of industrialization and effective as well as efficient use of resources.
Related Articles: Role and Relevance of Entrepreneurial Development Programme in India. The interesting interaction of entrepreneurship and economic development holds important inferences for policy makers, development institutes, business owners, change agents and charitable donors.
If we understand the benefits and drawbacks, a balanced approach to nurturing entrepreneurship can result in a positive impact on economy and .
The Role of Entrepreneurship in Economic Growth his work The Theory of Economic Development, Schumpeter first says that entrepreneurship causes economic growth by allowing the means of production in Role of Entrepreneurship in U.S.
and European Job Growth,” Bednarzick. Role of Entrepreneurship in Economic Development With special focus on necessity entrepreneurship and opportunity entrepreneurship Dr.
Sangya Shrivastava, Director, Rai Business School, Raipur.