Role of entrepreneur in economic development
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Answer:
Roles of entrepreneurship in economic development
- Employment Job creation Entrepreneurs contribute to creation of employment opportunities for citizens. They start a business and employ themselves first then expand the same business to absorb more citizens as employees.
- Improved quality of life
standard Entrepreneurs are creative and highly innovative. They are able to design goods and services that fit customer specifications. They continually improve on the same in order to meet changing customer needs. They also provide income to citizens in form of salaries and. wages the citizens can therefore afford goods and services.
-Add to National Income
Entrepreneurs generate a lot of income from their businesses locally and overseas. The amount of money generated can be used for more investment or to provide citizens with goods and services
-Even distribution of income
Entrepreneurs spread out to all parts of a nation because it is the business opportunities; that guide them where to invest. In the process they open up in accessible areas for envelopment. The presence of entrepreneurs in different parts may mean more income, better infrastructure and higher quality of life for the local community.
- Bring new technology in production
Through their creativity and innovation entrepreneurs device different methods of production and provision of services. They are quick to adopt new and efficient operation methods. To survive in a competitive market, they may continuously engage in research on ways to improve production and ensure customer service and profitability.
- Increase investment
Entrepreneurs are investors and may increase the number of investments in a nation. In so doing, they create more wealth in a nation investment may suggest ability to meet basic needs and save the surplus for investment.
-Increase government revenue
Entrepreneurs contribute to government revenue through, various forms of taxes.
The entrepreneur’s firm whether registered as a company or not still has a legal requirement to pay its taxes and to furnish the tax authority with the relevant paper Work, The entrepreneur running a sole business will need to submit all his income in a given fiscal year and the business income from his firm forms part of this. An entrepreneur running a public limited company has the responsibility of ensuring corporate taxes are paid each year and in compliance with the Companies Act and any other legislation. Other taxes that the entrepreneur should furnish the tax authorities are taxes on the sales of good to the final consumer, personal taxes on his employees and any other penalties associated with these ; taxes. The various forms of taxes are source revenue for the government.
-Social responsibility
The entrepreneur should realize that his business will go a long way in getting public approval if it is seem to be doing something positive for the local community. Regular contributions to community projects will put the business in the good books of the community. This should be clearly highlighted in the company’s policy. The goodwill of the business stands to improve and this ensures support not only from regular customers but also the local authorities
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