Role of Entrepreneurs in Economic Development of Country

Role of Entrepreneurs in Economic Development of Country

Role of Entrepreneurs in economic development of a country are discussed under the following heading.

Role of Entrepreneurs in Economic Development of Country

Role of Entrepreneurs in Economic Development of Country

1. Employment opportunities

Entrepreneurs employ labour for managing their business activities and provides employment opportunities to a large number of people. They remove unemployment problem.

2. Balanced Regional Development

Government promotes decentralized development of industries as most of the incentives are granted for establishing industries in backward and rural areas. Thus, the entrepreneurs to avail the benefits establish industries in backward and rural areas.

They remove regional disparities and bring balanced regional development. They also help to reduce the problems of congestion, slums, sanitation and pollution in cities by providing employment and income to people living in rural areas. They help in improving the standard of living of the people residing in suburban and rural areas.

3. Mobilization Of Local Resources

Entrepreneurs help to mobilize and utilize local resources like small savings and talents of relatives and friends, which might otherwise remain idle and unutilized. Thus they help in effective utilization of resources.

4. Optimization Of Capital

Entrepreneurs aim to get quick return on investment. They act as a stabilizing force by providing high output capital ratio as well as high employment capital ratio.

5. Promotion of Exports

Entrepreneurs reduce the pressure on the country’s balance of payments by exporting their goods they earn valuable foreign exchange through exports.

6. Consumer Demands

Entrepreneurs produce a wide range of products required by consumers. They meet the demand of the consumers without creating a shortage for goods.

7. Social Advantage

Entrepreneurs help in the development of the society by providing employment to people and paves for independent living They encourage democracy and self-governance. They are adept in distributing national income in more efficient and equitable manner among the various participants of the society.

8. Increase per capita income

Entrepreneurs help to increase the per capita income of the country in various ways and facilitate development of backward areas and weaker sections of the society.

9. Capital formation

A country can attain economic development only when there is more amount of investment and production. Entrepreneurs help in channelizing their savings and savings of the public to productive resources by establishing enterprises. They promote capital formation by channelizing the savings of public to productive resources.

10. Growth of capital market

Entrepreneurs raises money for running their business through shares and debentures. Trading of shares and debentures by the public with the help of financial services sector leads to capital market growth.

11. Growth of infrastructure

The infrastructure development of any country determines the economic development of a country, Entrepreneurs by establishing their enterprises in rural and backward areas influence the government to develop the infrastructure of those areas.

12. Development of Trader

Entrepreneurs play an important role in the promotion of domestic trade and foreign trade. They avail assistance from various financial institutions in the form of cash credit, trade credit, overdraft, short term loans, secured loans and unsecured loans and lead to the development of the trade in the country.

13. Economic Integration

Entrepreneur reduces the concentration of power in a few hands by creating employment opportunities and through equitable distribution of income. Entrepreneurs promote economic integration in the country by adopting certain economic policies and laws framed by the government. They help in removing the disparity between the rich and the poor by adopting the rules and regulation framed by the government for the effective functioning of business in the country.

14. Inflow of Foreign Capital

Entrepreneurs help to attract funds from individuals and institutions residing in foreign countries for their businesses.

Leave a Reply




Recent Posts


Related pages


consumable assetswhat is duplicating machineunethical advertising practiceshow to compute average inventoryppt on joint stock companydisadvantages of bills of exchangedishonor of cheque meaninginterpersonal roles figureheadskimming pricesinventory velocity formulawhen can the corporate veil be liftedtrading as a sole traderreasons for nationalizationdoctrine of ultra viresdisadvantages of socialist economytypes of activity based costingleadership styles advantages and disadvantagesdifference between vat and sales tax in indiaadvantages and disadvantages of capitalism and socialismaudit vouchinglifting the veil in company lawdefinition of master budgetdeductive and inductive methodindiscipline definitionprice variance formula accountingadvantages and disadvantages of trade unions to employeespsychological pricing advantages and disadvantagesprojectized organization advantages and disadvantagesstock turnover ratio formula examplerole of middlemen in distribution channelnumber of days sales in receivables formulasmall scale industries in west bengaljudgement sampling pdfwhat is cluster sampling in research methodsinterpretation of debt equity ratiossi industriesdecentralization and centralizationhow to reconcile petty cashcustomer departmentalization advantages and disadvantagesmeaning of juristic personnumeric filingdefinition of a sole traderloan securitization processtermination of agency in business lawnon participating preferred sharesadvantages and disadvantages of specialisation and division of labourmeaning consumerismbudgetary control and responsibility accountingretailing definitionpromoter dutiesregistrar of joint stock companiescompute payback perioddecentralisation advantages and disadvantagesmerits and demerits of nationalizationmanagerial accounting is preparedwhat is consumer cooperativemanagerial accounting and cost conceptsexplain the term decentralizationfdi examples in indiaaccount payable turnover formulacons of budgetingmaterial variances formulasrbi regulationsmeaning of demeritshow to write a precis paragraphdso daysmeaning of overhead in hindicomputation of payback perioddecentralized organizationcorporate veil in company lawprivate distributor brand definitionoverheads definitionpetty cash procedureadvantages of interim audit