While entrepreneurship is about the tasks performed in the individual, the notion of growing economics has frequently had relevance at the corporate level, national, industrial, and regional levels.
It follows that connecting the concept of entrepreneurship with economic growth would result in the amalgamation of individuals to the aggregate level.
This requires reconsidering what entrepreneurship means in which entrepreneurs, whether as groups or individuals, demonstrate their desire and ability to generate new opportunities within the economic system.
Through this process, new methods of production, new products or organizational plans, and a combination of market and product are created.
Entrepreneurs seek to present their new ideas into the marketplace in the context of uncertainties and obstacles.
They also make crucial decisions regarding locations, designs, and the utilization of resources and establishments.
Here are the top 10 roles of Entrepreneurship in Economic Development-
- Provides Large-Scale Opportunities for Employment
- Achieving a Balanced Regional Growth
- Growth in the National Income
- Facilitates Export
- New Products, New Services, and New Business
- The dispersal of economical Power
- Greater standards of living
- Creating Innovating
- Production Evolution Process
- Enhancing welfare amenities
Let’s explain one by one-
1.) Provides Large-Scale Opportunities for Employment:
Entrepreneurs can provide immediate large-scale jobs to the unemployed, which is a common issue in countries that are not developed.
As a result of creating more and more businesses by entrepreneurs, both on a small and large scale, numerous opportunities are opened up for others.
As time goes by, they expand, providing jobs in direct and indirect ways to many.
This way, entrepreneurs can play a significant contribution to reducing the burden of unemployment in our country, which, in turn, clears the way for the growth of the country’s economy.
2.) Achieving a Balanced Regional Growth:
The expansion of both business and industry can lead to numerous public benefits, such as transport facilities as well as health and education, entertainment, etc.
When the industry is concentrated within a few cities, growth is limited to those cities.
Rapid development occurs when entrepreneurs are growing at an increased rate because of the growing competition within cities and surrounding areas which is why they have to establish their businesses in smaller towns that are far from major cities.
This facilitates the development in backward areas.
3.) Growth in the National Income:
comprises the services and goods manufactured in the country and imported.
The products and services produced are consumed within the country as much as meeting the needs of exports.
Demand for domestic goods and services rises due to the increase in population and an increase in quality of life.
Export demand also rises to meet the demands of increasing imports for a variety of factors.
A growing number of entrepreneurs are needed to meet the growing demand for both goods and services. Entrepreneurship increases the nation’s income.
4.) Facilitates Export:
Trade of a Country Entrepreneurs assist in promoting the country’s export trade which is a crucial element of economic growth.
They manufacture products and services on an enormous amount to get enormous amounts of foreign exchange by export to meet the import duty demand.+
Therefore, export substitution and import promotion are essential to ensure the independence of the economy and growth.
5.) New Products, New Services, and New Business:
An entrepreneur looks for innovative ideas for business production techniques, new products, and products for the horizontal market,
i.e., varieties and vertical, increase in quantity, and the growth of money of the company.
6.) The dispersal of economical Power:
Industrialization normally can result in concentrations of power in economic power in a handful of hands.
The concentration of power in a handful of hands comes with its problems as monopolies are created.
The development of a lot of entrepreneurs can help spread the power of the economy among the people.
It also assists in lessening the negative consequences of the monopoly.
7) Greater standards of living:
Entrepreneurs play an essential part in achieving a greater level of economic growth.
Entrepreneurs can create items at lower costs and provide quality products at a cheaper cost to the population based on the needs of their customers.
When the price of goods decreases, consumers can purchase more items to satisfy their needs.
This way, they can improve the standard of living for the majority of people.
8.) Creating Innovating:
Entrepreneurs are the person who is always looking for innovations.
In addition to combining the elements that affect production, entrepreneurs also develop innovative ideas and a fresh combination of elements.
They are always trying to introduce the latest and most innovative methods in producing products and services.
Entrepreneurs can boost economic growth by innovating.
9.) Production Evolution Process:
Entrepreneurs comprehend and are a part of the process of the evolution of products.
This is a method by which innovation takes place, and the Entrepreneur commercializes innovative products.
In this case, an entrepreneur blends various technologies and blends them into services and products that are then sold to consumers.
10.) Enhancing welfare amenities:
Innovative companies provide health facilities as well as comforts, insurance, etc.
Entrepreneurs based on their own experiences seeking to develop items and products that will assist others.
It is generally believed that when people face personal tragedy or personal issues or adversity, they might discover the need for an item or service which isn’t being fulfilled.
These circumstances require people to think of new ways to alleviate their pain, and, at the end of the day, it will lead to the idea of entrepreneurship.
Role of entrepreneurship in economic development ppt