ADVERTISEMENTS: The entrepreneur who’s a company leader appears and places them into effect in boosting development and growth. Entrepreneurship is among the input in a country’s growth. The entrepreneur acts as a trigger head to provide spark by his conclusions to activities. He plays a role in the evolution of sector of a nation, but in service and farm sector’s creation. As follows, the functions played by an entrepreneur in the growth of an economics is discussed in a fashion. Promotes Capital Formation: entrepreneurs promote capital formation by mobilising public’s economies. They use for establishing their ventures resources in addition to their own.
Kind of activities result in production and value addition of wealth, which is essential for the country’s development. Creates Large Scale Employment Opportunities: entrepreneurs provide immediate scale employment to the unemployed that’s a problem of countries. With the setting up.of increasingly more components by entrepreneurs, both on small and large scale many job opportunities are created for others. As time passes, these businesses grow, providing many more with employment opportunities. The growth of businesses and companies in these areas lead to a lot of people benefits like road transport, health, education, entertainment, etc. Setting up of more businesses lead to more development of backward areas and thus promotes balanced regional development.
Reduces Concentration of Economic Power: Economic power is the natural result of industrial and business activity. Entrepreneurial activity also generate more actions and provide a multiplier effect in the economy. 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 at new services and products and develops markets for growth of the economy. Entrepreneurs play a key role in increasing the standard of living of the people by adopting latest innovations in the creation of broad selection of services and goods at large scale that too at a lower cost.
This enables the individuals to avail better quality goods at affordable prices which translates into an improvement of their standard of living. Promotes Countrys Export Trade: Entrepreneurs help in promoting a countrys export trade, which is an essential ingredient of economic development. They produce goods and services at large scale for the purpose making huge amounts of foreign exchange from export at order to combat the import dues requirement. Therefore import substitution and export promotion ensure financial independence and growth. Induces Backward and Forward Linkages: Entrepreneurs like to work in an environment of change and try to maximise profits by innovation.