Discuss the role of entrepreneurship in economic development of india
Answers
(1) Promotes Capital Formation:
Entrepreneurs promote capital formation by mobilising the idle savings of public. They employ their own as well as borrowed resources for setting up their enterprises. Such type 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 underdeveloped 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. As time passes, these enterprises grow, providing direct and indirect employment opportunities to many more. In this way, entrepreneurs play an effective role in reducing the problem of unemployment in the country which in turn clears the path towards economic development of the nation.
(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, entertainment, etc. Setting up of more industries lead to more development of backward regions and thereby promotes balanced regional development.
(4) Reduces Concentration of Economic Power:
Economic power is the natural outcome of industrial and business activity. Industrial development normally lead to concentration of economic power in the hands of a few individuals which results in the growth of monopolies. In order to redress this problem a large number of entrepreneurs need to be developed, which will help reduce the concentration of economic power amongst the population.
(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 look out for opportunities. They explore and exploit opportunities,, encourage effective resource mobilisation 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. Increase in gross national product and per capita income of the people in a country, is a sign of economic growth.
(6) 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.
(7) Promotes Country's Export Trade:
Entrepreneurs help in promoting a country's export-trade, which is an important ingredient of economic development. 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.
(8) Induces Backward and Forward Linkages:
Entrepreneurs like to work in an environment of change and try to maximise 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.
Answer:
Some of the role of entrepreneurship in economic development of India :
1. Wealth Creation and Sharing: By organizing the enterprise entity, marketers make investments their personal sources and entice capital (with inside the shape of debt, equity, etc.) from investors, creditors and the public. This mobilizes public wealth and lets in human beings to enjoy the fulfillment of marketers and developing corporations. This type of pooled capital that consequences in wealth introduction and distribution is one of the primary imperatives and dreams of monetary improvement.
2. Create Jobs: Entrepreneurs are via way of means of nature and definition process creators, instead of process seekers. The easy translation is that while you turn out to be an entrepreneur, there's one much less process seeker with inside the economy, and then you definitely offer employment for a couple of different process seekers. This type of process introduction via way of means of new and current corporations is once more is one of the primary dreams of monetary improvement. This is why the Govt. of India has released tasks inclusive of Startup India to sell and help new startups, and additionally others just like the Make in India initiative to draw overseas corporations and their FDI into the Indian economy. All this in flip creates plenty of process opportunities, and is supporting in augmenting our requirements to a worldwide level.
3. Balanced Regional Development: Entrepreneurs putting in new corporations and commercial devices assist with nearby improvement via way of means of finding in much less advanced and backward regions. The increase of industries and enterprise in those regions ends in infrastructure enhancements like higher roads and rail links, airports, solid energy and water supply, faculties, hospitals, purchasing shops and different public and personal offerings that might now no longer in any other case be available. Every new enterprise that locates in a much less advanced region will create each direct and oblique jobs, supporting raise nearby economies in lots of extraordinary ways. The mixed spending via way of means of all the new personnel of the brand-new corporations and the helping jobs in different corporations provides to the nearby and nearby monetary output.
4. GDP and Per Capita Income: India’s MSME sector, produced from 36 million devices that offer employment for extra than eighty million human beings, now bills for over 37% of the country’s GDP. Each new addition to those 36 million devices uses even extra sources like land, hard work and capital to expand services and products that upload to the country wide profits, country wide product and in step with capital profits of the country. This increase in GDP and in step with capital profits is once more one of the important dreams of monetary improvement.
5. Standard of Living: Increase with inside the trendy of residing of human beings in a network is but every other key intention of monetary improvement. Entrepreneurs once more play a key function in growing the usual of residing in a network. They try this now no longer simply via way of means of growing jobs, however additionally via way of means of growing and adopting improvements that result in enhancements with inside the first-class of lifestyles in their personnel, clients, and different stakeholders with inside the network.
6. Exports: Any developing enterprise will finally need to get began out with exports to amplify their enterprise to overseas markets. This is a crucial component of monetary improvement because it offers get right of entry to larger markets, and ends in forex inflows and get right of entry to the brand new modern-day technology and methods being utilized in extra advanced overseas markets. Another key advantage is this growth that ends in extra solid enterprise sales for the duration of monetary downturns with inside the nearby economy.
7. Community Development: Economic improvement doesn’t usually translate into network improvement. Community improvement calls for infrastructure for training and education, healthcare, and different public offerings. For instance, you want rather knowledgeable and professional people in a network to draw new corporations. If there are instructional institutions, technical education faculties and internship opportunities, with a view to assist construct the pool of knowledgeable and professional people.
So, there's a totally crucial function for marketers to spark monetary improvement via way of means of beginning new corporations, growing jobs, and contributing to development in numerous key dreams inclusive of GDP, exports, trendy of residing, talents improvement and network improvement.
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