what is the importance of entreprenues ?
class 10th
chapter - entreprenuer skills
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Answers
@N$W£R:-
Entrepreneurship is important as it has the ability to improve standards of living and create wealth, not only for the entrepreneurs, but also for related businesses.
Entrepreneurs also help drive change with innovation, where new and improved products enable new markets to be developed.
Economy wise, higher earnings thanks to entrepreneurship can help boost national income and tax revenue.
Entrepreneurs contribute in other ways as well, such as investing in community projects and supporting local charities.
Too much entrepreneurship (i..e, high self-employment) can be detrimental to economic development.
Is All Entrepreneurship Good?
Are there any drawbacks to cultivating entrepreneurs and entrepreneurship? Is there a limit to the number of entrepreneurs a society can hold?
Italy may provide an example of a place where high levels of self-employment have proved to be inefficient for economic development. Research has shown that Italy has experienced large negative impacts on the growth of its economy because of self-employment.3 There may be truth in the old saying, "too many chefs and not enough cooks spoil the soup."
The Role of Government
Regulation plays a crucial role in nurturing entrepreneurship. Unregulated entrepreneurship may lead to unwanted social outcomes including unfair market practices, pervasive corruption, and criminal activity.
Findings from the United Nations University also indicate the possible implications of “over-nurturing" entrepreneurship. European economist Wim Naudé argues that “while entrepreneurship may raise economic growth and material welfare, it may not always result in improvements in non-material welfare (or happiness). Promotion of happiness is increasingly seen as an essential goal.”4
Paradoxically, a significantly high number of entrepreneurs may lead to fierce competition and loss of career choices for individuals. With too many entrepreneurs, levels of aspirations usually rise. Owing to the variability of success in entrepreneurial ventures, the scenario of having too many entrepreneurs may also lead to income inequality, making citizens more unhappy.4
The Bottom Line
The relationship between entrepreneurship and economic development is important to understand for policymakers and business owners. Understanding the benefits and drawbacks of entrepreneurship allows a balanced approach to nurturing entrepreneurship to be taken, which can result in a positive economic and societal impact.
ARTICLE SOURCES
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Related Terms
What You Should Know About Entrepreneurs
Learn what an entrepreneur is, what they do, how they affect the economy, how to become one, and what you need to ask yourself before you commit to the path. more
Gross Domestic Product (GDP)
Gross domestic product (GDP) is the monetary value of all finished goods and services made within a country during a specific period. more
Capitalism
Capitalism is an economic system whereby monetary goods are owned by individuals or companies. The purest form of capitalism is free market or laissez-faire capitalism. Here, private individuals are unrestrained in determining where to invest, what to produce, and at which prices to exchange goods and services. more
How Factors of Production Work
Factors of production are the inputs needed for the creation of a good or service. The factors of production include land, labor, entrepreneurship, and capital. more
Globalization
Globalization is the spread of products, investment, and technology across national borders and cultures. more
Economics
Economics is a branch of social science focused on the production, distribution, and consumption of goods and services. more
Explanation:
Key Takeaways. Entrepreneurship is important as it has the ability to improve standards of living and create wealth, not only for the entrepreneurs, but also for related businesses. Entrepreneurs also help drive change with innovation, where new and improved products enable new markets to be developed