Business Studies, asked by shahanab3023, 9 months ago

What is the need of entrepreneurship in an economy?

Answers

Answered by mozammil921

Answer:

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

Answered by nikitasingh79

The need of entrepreneurship in an economy can be highlighted from the following points :

(1) Lifeline of a nation :

Level of development of a country can be measured from the quality of the entrepreneurship.No country can develop without the development of entrepreneurship, as it increases the quality and quantity of trade.

(2) Provides innovation :

An Entrepreneur is the person who brings new ideas , innovate products and new vision to the enterprise. As a result of which consumers in the market gets a wider variety of goods and services which again help in increasing the size of the market but domestically as well as internationally.

(3) Increase in profits:

Profit is the excess of revenue over cost. It can be increased either by increasing revenue or reducing cost. increase in revenue is beyond the control of the enterprise and profit can be increased by reducing cost of production which is possible only with the endeavour of an entrepreneur. Increase in profit increases the opportunities for future growth and development.

Hope this answer will help you….