Long Answers:
Explain the role of an entrepreneur in the development of our nation.
Explain the role of an entrepreneur in the development of our nation.
The role of entrepreneur and entrepreneurship in economic development can be highlighted with the help of the following functions performed by entrepreneurs:
i) Generating Income- Economic development of any economy is related to the increase in its GDP. As an entrepreneur takes up production activities, he/she directly contributes to the income.
ii) Forming Capital- The GDP of an economy is directly related to the rate of capital formation. An entrepreneur invests his/her own savings and mobilises the savings of others. Thus, an entrepreneur contributes to the process of capital formation.
iii) Generating Employment- By setting up a business, an entrepreneur provides employment directly or indirectly. He/she provides employment to labourers for building a factory or hires people who can work in the production process.
iv) Creating Business Linkages- An entrepreneur helps in creating a chain of business linkages. An enterprise provides opportunities to both the suppliers of the raw materials and the marketers who will be selling the final product.
v) Increasing Efficiency- An entrepreneur improves economic efficiency by avoiding the wastage of resources. He/she focuses on the optimisation of resources and aims at producing greater output from the available inputs. He/she also works on the technological aspect to contribute to the productivity.
vi) Increasing the Range of Economic Activities- Entrepreneurs always look out for fresh areas to invest their savings or to start up a new business. By doing so, they help in increasing the scale of economic development.
i) Generating Income- Economic development of any economy is related to the increase in its GDP. As an entrepreneur takes up production activities, he/she directly contributes to the income.
ii) Forming Capital- The GDP of an economy is directly related to the rate of capital formation. An entrepreneur invests his/her own savings and mobilises the savings of others. Thus, an entrepreneur contributes to the process of capital formation.
iii) Generating Employment- By setting up a business, an entrepreneur provides employment directly or indirectly. He/she provides employment to labourers for building a factory or hires people who can work in the production process.
iv) Creating Business Linkages- An entrepreneur helps in creating a chain of business linkages. An enterprise provides opportunities to both the suppliers of the raw materials and the marketers who will be selling the final product.
v) Increasing Efficiency- An entrepreneur improves economic efficiency by avoiding the wastage of resources. He/she focuses on the optimisation of resources and aims at producing greater output from the available inputs. He/she also works on the technological aspect to contribute to the productivity.
vi) Increasing the Range of Economic Activities- Entrepreneurs always look out for fresh areas to invest their savings or to start up a new business. By doing so, they help in increasing the scale of economic development.
