Answer:
The major roles played by an
entrepreneur in the economic development of an economy is discussed in a
systematic and orderly manner as follows.
(1)
Promotes Capital Formation:
Entrepreneurs promote capital
formation by mobilizing the idle savings of public. They employ their own as
well as borrowed 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 the country.
(2)
Creates Large-Scale Employment Opportunities:
Entrepreneurs provide immediate
large-scale employment to the unemployed, which is a chronic problem of under developed
nations. With the setting up. Of more and more units by entrepreneurs, both on
small and large-scale numerous job opportunities are created for others.
(3)
Promotes Balanced Regional Development:
Entrepreneurs help to remove
regional disparities through setting up of industries in less developed 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.
(4)
Reduces Concentration of Economic Power:
Economic power is the natural
outcome of industrial and business activity. Industrial development normally
leads to concentration of economic power in the hands of a few individuals
which results in the growth of monopolies.
(5)
Wealth Creation and Distribution:
It stimulates equitable
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 generate more activities and give a
multiplier effect in the economy.
(6)
Increasing Gross National Product and Per Capita
Income:
Entrepreneurs are always on the lookout
for opportunities. They explore and exploit opportunities, encourage effective
resource mobilization 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
a country.
(7)
Improvement in the Standard of Living:
Increase in the standard of
living of the people is a characteristic feature of economic development of the
country. Entrepreneurs play a key role in increasing the standard of living of
the people by adopting 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.
(8)
Promotes Country's Export Trade:
Entrepreneurs help in promoting a
country's export-trade. They produce goods and services in large scale for the
purpose earning huge amount of foreign exchange from export in order to combat
the import dues requirement. Hence, import substitution and export promotion
ensure economic independence and development.
(9)
Induces Backward and Forward Linkages:
Entrepreneurs like to work in an
environment of change and try to maximize profits by innovation. When an
enterprise is established in accordance with the changing technology, it
induces backward and forward linkages, which stimulate the process of economic
development in the country.
(10)
Facilitates Overall Development:
This
leads to overall development of an area due to increase in demand and setting
up of more and more units. In this way, the entrepreneurs multiply their
entrepreneurial activities, thus creating an environment of enthusiasm and
conveying an impetus for overall development of the area.
Social Responsibility
Entrepreneurship is not only limited
to starting business for profit but also should combine notions of innovation,
changes, opportunities and resources along with social responsibility. It
combines the entrepreneurship with a mission to serve the society.
ESR
ensures the better living and improving communities through their social activities;
and providing amenities to the poor and the entrepreneurs can develop better
impact social interventions to lift the communities out of poverty.
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