development requires resources but resources themselves can’t ensure development. Discuss the statement in the light of role of entrepreneur in the economic development of the country.
Answers
Explanation:
development requires resources but resources themselves can’t ensure development as resources are not useful at thier level unitl unless humans interfer in this and we the humans makes the resources useful for development.
For example :- water is a resource but it is no development until we use it in making electricity and all.
Answer:
Okay, so I copied-and-pasted this from one of my college Entrepreneurship subject modules. The information is found online but I prefer the form that my notes takes: (P.S. Use at your own responsibility.)
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The entrepreneurs serve as a key to the creation of new enterprises, thereby rejuvenating economy and sustaining the process of economic development in the following ways:
1. Improvement in per capita income/wealth generation: Entrepreneurs play a vital in the economic development of a region. From the fall of Rome (AD 476) to the eighteenth century, there was virtually no Increase in per capita wealth generation in the West. With the advent of entrepreneurship, however, per capita wealth generation and income in the west grew exponentially by 20 Percent in the 1700s, 200 percent in the 1800s, 740 percent in the 1900 (Drayton, 2004).
2. Generation of employment opportunities: By creating a new business enterprise, entrepreneurs generate employment opportunities for others. Unemployment is a major issue, especially in the context of developing economies like India. Educated youth often are unable to get to get a suitable employment themselves. Thus, entrepreneurs not only self employ themselves, but also create jobs for others.
3. Inspire others towards entrepreneurship: The team created by an entrepreneur for his new undertaking often provides the opportunity for the employees to have a first-hand experience of getting involved in an entrepreneurial Venture. An existing venture provides a number of entrepreneurial opportunities through forward and backward linkages, to these employees even to become entrepreneurs themselves. Thus, this process helps in forming a chain reaction of entrepreneurial activity which directly contributes to the health of the economy.
4. Balanced Regional Development: Entrepreneurs help to remove regional disparities in economic development. They set up the industries in the backward areas to avail various subsidies and incentives offered by the Central and State Governments, thereby balancing the economic growth in different regions in the country.
5. Enhance the number of enterprise: When new firms are created by entrepreneurs, the number of enterprises based upon new ideas/ concepts/ products in a region increases. Not only does an increase in the number of firms enhance the competition for new ideas, but greater competition across firms also facilitates the entry of new firms specializing in a particular new product or service. This is because the necessary complementary inputs are more likely available from small specialist niche firms than from large vertically integrated products (Jacobs, 1969).
6. Provide diversity in firms: Entrepreneurial activity often results into creation of a variety of firms in a region. These firms operate into diverse activities and it has been found that it is this diversity in firms which fosters economic development and growth rather than homogeneity. According to Jacobs (1969), it is the exchange of complementary knowledge across diverse firms and economic agents that yield an important return on new economic knowledge.
7. Economic Independence: Entrepreneurship is essential for self-reliance for a country. Entrepreneurs create industries that manufacture indigenous substitutes, thereby reducing the dependence on imports. Also, the goods are exported to other countries to earn foreign exchange. This import substitution and export promotion results in more economic independence to the country.
Explanation:
Entrepreneurial development is the most important input in the economic development of any country. The objectives of industrial development, balanced regional growth, and generation of employment opportunities are achievable through entrepreneurial development. Entrepreneurs are at the core of industrial development which results in greater employment opportunities to the unemployed youth, increase in per capita income, higher standard of living and increased revenue to the government in the form of income, sales tax, export duties, import duties etc.
(I don't know if this is the right explanation for this, although, this is put at the top of my lecture notes.)
Final note: I hope this answer satisfies your question, anyway!
Side note: I see this question a couple of times referenced in the Internet already. And I found that it is tied with the information I given above. This is probably a famous question from a well-referenced Entrepreneurship exam or test paper that a professor or teacher made.
Reference:
A college student's Entrepreneurship subject notes.
Possible Original Source:
S, S. (2019, June 8). Role of Entrepreneurs in Economic Development. Economics Discussion.
*For some reason, Brainly doesn't want me to site the URL of this web article?
Explanation: