Entrepreneur is an individual who has the initiative skill and motivation to startup a new business, bearing most of the calculated risks and look for higher achievements. Entrepreneurs act on what they believe is an opportunity because opportunity exist in high uncertainty, entrepreneurs must do their judgement about whether or not to act. They always looks for innovative ideas and put them into effect for the economic growth and development of the country. Entrepreneurs are the business leader as they creates jobs that facilitates their personal development. Entrepreneurs having innovative and disruptive ideas which help them to tackle from social problems. Entrepreneur plays a vital role not only in development of industry sector but also in the development of farm and service sector. According to Koontz and Fulmer, “The ability of a person to see a business opportunity, to get together the capital needed, to take advantage of the opportunity, and to start a business, taking the risk of failure in the hope or reaping the rewards of success”
Examples of Entrepreneurs
Bill Gates, Founder of Microsoft. There are probably not many people that have not been touched by one of his products, such as Microsoft Windows, Microsoft Office and Internet Explorer.
Steve Jobs, co-founder of Apple computers, which produces Macs, iPods and iPhones, as well as Apple TV.
Mark Zuckerberg, the founder of Facebook.
Pierre Omidyar, Founder of eBay.
Arianna Huffington, Founder of Huffington Post, a well-known online news site.
Caterina Fake, Co-Founder of Flikr, which hosts images and videos on the internet.
Role of Entrepreneurs in Economic Development
Entrepreneurship plays an influential role in the economic growth and improve standard of living of the country. Entrepreneurs not only lunches a new venture but also contributes significantly for the development of the economy by creating employment opportunities, creation and distribution of wealth and by upgradation of technology of production. Entrepreneurs having different role in economic development that varies from economy to economy which is depending upon its material resources, industrial climate and the responsiveness of political system. They plays an important role in the creation and growth of the business, as well as in the growth and prosperity of regions and nations. The vital role that entrepreneur plays in the economic development of the country are as follows:
Provide employment opportunities: Entrepreneurs are job creators as opposed to job seeker. Entrepreneurs offers large-scale employment opportunity to unemployed which is major problem faced by underdeveloped countries. Entrepreneurs generates both direct and indirect employment opportunities to large number of peoples. Directly, self- employment as an entrepreneur and indirectly, by setting up large and small-scale business to the millions of people. Thus, entrepreneurs helps in reducing unemployment problems of the nation which helps in economic development of the nation.
Facilitates Wealth Creation and Sharing: Entrepreneurs startup new venture by investing their resources and attracting capital from investors and the public. This mobilize public wealth and allow people to benefit from the success of entrepreneurs and growing businesses. Entrepreneurs distribute wealth and income to more people and geographic areas and give a multiplier effect in the economy. As well as giving the benefits to larger section of the society, which helps in economic development of the country.
Enhance Capital Formation: Entrepreneur enhances capital formation by assembling the idle saving of public. Mobilization of public savings helps in productive utilization of natural resources. Hence capital formation increases, which play essential role in rapid economic growth. As Entrepreneurial activities helps to create and distribute wealth which play a vital role in economic development of the country.
Improve Standard of living : Entrepreneurs play a vital role in improving the living standard of people. Their objective is to not just only creates jobs, but also develop and adopt innovations for the improvements of quality of life of employees, customers, and the other stakeholders. Entrepreneurs prefer latest innovative production techniques and process for production of wide variety of goods and services at a reasonable cost. This enables people to gain better quality goods and services at a reasonable price. As a result the living standard of people automatically improved. Thus the improvement of standard of living helps in economic development of the country.
Promotes Balanced Regional Development: Entrepreneurs Starting new businesses and industries helps in regional development by locating and improving less developed and backwards areas. For the development of business and industries entrepreneurs need infrastructure developments like better roads, airports, Stable electricity, water supply, schools, hospitals, shopping malls and many more public and private service sectors. Establishment of more and more industries leads to more development of backwards regions and thereby promotes balanced regional developments.
Creates Innovation: Entrepreneurs main objective is to create innovation and upgrade latest production process. Entrepreneurs are always thinking up of new products or services that are so innovative and have the ability to create or open new markets. Generally entrepreneurs introduces new innovative ideas and new combination of factors of production. Hence through innovation entrepreneurs are able to brings economic development.
Promotes Export: Entrepreneurs started their business with exports to expand their business to foreign market to access bigger markets and leads to currency inflows which helps in economic development of the nation. Entrepreneurs helps in promoting a countries export trade, which is an important ingredient of economic development. Entrepreneurs facilitates good and services in wide scale for the purpose of earning huge amount of foreign exchange from export trade. Hence foreign exchange helps in economic development of the nation.
The entrepreneurs have positive impact on economic development as it increases capital formation, promotes employment opportunities, improve standard of living of the people of the nation, facilitates wealth creation and distribution, increase gross national product and per capita income, promotes country export trade and facilitates the overall development of nation.
Dhaliwal, A. (2016). Role of Entrepreneurship In Economic Development (Vol. 4). Retrieved june 6, 2016 Pradhan, S. (2020). Role of Entrepreneurship in Economic Development. Retrieved April 28, 2020 BEKMEZCI, D. M. (2013). Taking Competitive Advantage By Business Model Innovation (Vol.20). Drucker, P. F. (1985). Innovation and Entrepreneurship.
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