Need of Entrepreneurship

An entrepreneur plays a different role in the industrial and economic development of a locality , region and nation .
Entrepreneurship , like many other economic concept , has long been debated .

It has been derived from a french root which means ' to undertake ' .
Entrepreneurs serve as the catalyst in the process of industrialization and economic development, unless technological breakthrough are put to economic use by entrepreneurs.

1.) Capital formation : Entrepreneur mobilise the idle savings of the public for productive utilisation of national resources. The increase the rate of capital info.

2.) Development of Entrepreneurial culture : many persons may be tempted yo become entrepreneurs when they see a successful entrepreneur near by this creates an entrepreneurial culture in the society which is highly needed for the industrial development of a country.

3.) Generation of employment : The entrepreneurs not only create employment for themselves but also provide a lot of employment opportunity for others . Thus entrepreneur-ship helps to reduce the unemployment problem in the country . Some company and high level companies beileve in Entrepreneur- ship . They bond to others industry through the contract basis . This helps to other person like unemployment and jobless person.

4.) Social development : Due to the efforts of Entrepreneurs economic progress of the different region take place which is accompanied by social development and creation of several facilities such as roads , hospitals , markets , banks , schools its also improvement in stock market .

5.) Competition in market : Entrepreneur usually start small scale or small level industries and provide good and services at most competitive rates and hence restrict the monopolistic activities of big business houses . In market so many industries available . They provide so many services at low cost . They want to be good place in market by provide good service. They provide all service according to customer necessary.

6.) Utilisation of local resources : so many type raw materials are found scattered throughout the country in small quantities . Such unused small quantities of material can be effectively utilised by small Entrepreneur to make some useful product aand ensure better utilisation of national resources. They use all resources accordingly to necessary , according to need . So many resources available in locality .
They also save extra import money.

7.) Economic independence : Entrepreneurship is important for nation self - reliance . They have not to depend on foreign countries for import of many product that are manufactured in our own country , which helps saving of lot of foreign exchange.
Entrepreneurs also export good services on a large scale and there by earn the foreign exchange for the country . Thus reduction in import and export promotion help to ensure the economic independent of the country without political independence has little meaning so they save extra cost and improve the some field with this extra cost.

8.) Balanced regional growth : Establishment of industries by Entrepreneur at different places provides a balanced economic growth of various region of the country . They set up industries in backward areas to avail of the various concessions and subsidies offered by the central and state government. This helps to remove regional disparities in economic development.

9.) Improvement in per capita income : Entrepreneur are opportunity seekers . They convert the latent and idle resources like land , labour and capital into national wealth in the form of goods and services. This hepls to increase per capita income which is an important yardstick for measuring economic growth of country .

10.) Backward and forward linkages : an entrepreneur initiates change which has a chain reaction . Setting up of an enterprise has several backward and forward linkages.
Need of Entrepreneurship Need of Entrepreneurship Reviewed by Vipin on June 05, 2019 Rating: 5

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