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Reasons for Promoting Entrepreneurship and Entrepreneurs

There are various reasons for promoting entrepreneurs which are as follows:

1. Profit Earning
2. Production of Goods
3. Creating Markets
4. Technological Improvement
5. Welfare of Employees
6. Satisfaction of Consumer
7. Availability of Goods
8. Supply of Quality Goods
9. Creation of More Employment
10. Utilizing National Resources Properly
11. Survival
12. Growth
13. Earn Recognition and Prestige
14. Helping National Efforts
15. Development of Small Entrepreneurs
16. National Self-Dependence and Export Development
17. Development of Skilled Personnel

Profit Earning

Every enterprise is started to earn profits. Profits are the basic incentive to entrepreneurship. Profits are required to face various business uncertainties like trade cycles, and fluctuations in money markets. Entrepreneurship needs profits not only for its existence but also for expansion and diversification.

The investors want an adequate return on their investments, workers want higher wages and the entrepreneur needs money for reinvesting.

All these demands and requirements will be met only when some profits are made. The profit motive does not mean that the entrepreneur should start exploiting consumers by charging higher prices or selling low-quality goods.

Production of Goods

The profit can be earned only when the production of goods takes place. The next objective is to produce more goods and sell them to the consumers for a price. The entrepreneurs estimate the demands for goods and produce accordingly.

The tastes, preferences, and paying capacity of consumers must be given due consideration while producing goods. An entrepreneur creates form, place, and time utilities and meets the requirements of society.

Creating Markets

The aim of the entrepreneur is to sell products in markets. Marketing consists of those efforts that affect the transfers. In ownership of goods from entrepreneur to consumers. Marketing covers all those activities that relate to the creation of time, place, and possession utility.

The entrepreneur searches for new consumers to increase his sales. An effort is also made to retain old consumers by supplying them with better quality goods at reasonable prices. The new markets are also exploited to keep a steady demand for goods. An enterprise cannot exist without finding out new markets for products.

Technological Improvement

An entrepreneur should always try to use new methods of production In the world of competition everybody tries to sell their products by offering goods quality products at lower prices This is only possible when the latest technology is used for producing goods.

Which helps to increase production and reduce costs? The entrepreneur should try to devise new methods so that he may keep pace with the changing business world.

Welfare of Employees

The employees should be treated as human beings. The employees of an enterprise helps in increasing the profitability and they should also be given a due share in profits in the forms of bonus, increased allowances, or spending money on their welfare.

The worker should be rewarded for their hard work. The entrepreneur should look after the welfare of his workers by providing physical comforts, materials incentives, appreciation, the dignity of labor, and better working conditions which will motivate the worker to work dedicatedly with devotion.

Satisfaction of Consumer

The consumer should be provided with better quality goods at reasonable prices. The tastes, links, and requirements of the consumer should be given due weight to age. The product is meant for consumer and their satisfaction should be the main objective of entrepreneurship.

Availability of Goods

Entrepreneurship should ensure the supply of goods to meet the requirements of society. Entrepreneurship should estimate the total demand for various commodities and the production accordingly.

The governments are also undertaking the work of co-coordinating entrepreneurial activities according to society. Better quality goods should be provided to society at reasonable rates.

Supply of Quality Goods

The supply of quality goods and services to consumers at reasonable prices is the responsibility of the entrepreneur. The entrepreneur should aim at consumer satisfaction.

The supply of inferior quality, unusable, or harmful to health will be against business ethics. An enterprise cannot flourish in the long run if it ignores the interests of the consumer and provides them with quality goods at reasonable prices.

Creation of More Employment

The entrepreneur can help society by creating more job opportunities. An entrepreneur provides more jobs to the unemployed or sets up new units.

Utilizing National Resources Properly

The entrepreneur should put the scarce national resources to the best possible use. Wastage of money material men etc. will not only be the loss of the enterprise but it will be a national loss. The use of improved technological methods for the production of goods can be helpful in raising production and reducing costs.

Survival

The first objective of the enterprise is survival. It has to ensure that only those activities are taken up which are beneficial to the society. It should try to create demand for its products so that it is able to produce profits. Various factors of production are paid out for profits. A losing concern cannot survive for long.

Growth

A business enterprise may be compared to a human being. As a human body grows through various stages, i.e., from infancy to childhood, from childhood to adolescence, from adolescence to adulthood, and from to maturity, an enterprise unit also passes through various phases during its existence.

An enterprise unit tries to utilize its resources properly so that it is able to plow back its profits for further expansion and diversification. A stagnant business will not be able to face the changing economic, political, and social environment. Every business house aims at its proper growth. A number of plans and policies are framed to facilitate the future growth of every unit.

Earn Recognition and Prestige

A business enterprise always aims to get recognition and goodwill. This is possible only if service them well. It should have good reports with the suppliers and dealers by keeping proper schedules of payment and supply of goods. The consumer should be supplied with good quality products at reasonable prices.

The payments of various taxes, etc. to the government should be timely. All these acts will earn goodwill for the enterprises and its prestige will enhance. Properly run units may become indispensable for various sections of society.

Helping National Efforts

An enterprise aims to help the national efforts to improve the economic position of the society. The entrepreneur should enter those fields of industrial activity which remained neglected so far.

Entrepreneurs should set up new units in backward and underdeveloped areas so that people living there get employment opportunities and the resources available there are fully utilized. It is the duty of the business entrepreneurs to produce goods on the basis and not on the basis of needs and not on the basis of profit margins.

Development of Small Entrepreneurs

Every country needs trained and skilled personnel for the development of its industry. Business enterprises can provide technical knowledge and training to their employees.

This helps in skill formation for the country’s growth and development. In India, some business houses have set up engineering and technology institutes that supply trained personnel to the nation.

National Self-Dependence and Export Development

Enterprise can play an important role in making the country self-reliant. It should substitute all those goods which are imported.

Efforts should also be made to produce those goods which find ready market in foreign countries. This will help in earning foreign exchange; a self-reliant nation has more prestige in the international community.

Development of Skilled Personnel

Every country needs trained and skilled personnel for the development of its industry. Business enterprises can provide technical knowledge and training to their employees. This will help in skills houses that have set up engineering and technology institutes with supplied trained personnel to the nation.

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