Role of Entrepreneur in Economic Development
Entrepreneurship plays a very important role in economic development. Entrepreneur acts as catalytic agents in the process of industrialization and economic growth. It is the entrepreneur who organizes and puts to use capital, labor, and technology in the best possible manner for setting up his enterprise.
- Creation of Employment Opportunities
- Capital Formation
- Balanced Regional Development
- Use of Local Resources
- Improvement in Per-Capital Income
- Improvement in Standard of Living
- Economic Independence
Creation of Employment Opportunities
Unemployment is one of the most important problems confronting developing and under-developed countries, EDPs enable prospective entrepreneurs the set up their own units thus enabling them to get self-employment with the setting up of more and more units by entrepreneurs, both on small and large scales, numerous jobs opportunities are created for others. Thus, entrepreneurs can play an effective role in reducing the problem of unemployment.
Entrepreneur as organizer of factors of production employs their business well and borrow resources for the setting up of their enterprises. Entrepreneur mobilizes idle savings of the public and put them to productive use. In this way, he helps in capital formation which is so essential for the industrial and economic development of a country.
Balanced Regional Development
Small-scale units will be set up in industrially backward and remote areas with limited financial resources successful EDPs assist in accelerating the pace of industrialization in the backward areas and reduce the concentration of economic power in the hands of a few entrepreneurs feel like taking advantage of the various concessions and subsidies offered by the state and central Govt.
Use of Local Resources
In the absence of any initiative, local resources are likely to remain unutilized. Proper use of these resources can result in the progress or development of the area and that too at a lower cost.
Alert entrepreneurs seize the opportunity and exploit it in the best interests of the area and industry. Effective EDP can help in the proper use of local resources by providing guidance assistance, education, and training and the prospective entrepreneur.
Improvement in Per-Capital Income
Entrepreneurs are always on the lookout for opportunities they explore and exploit the opportunities. Entrepreneur takes the lead in organizing various factors of production by putting them to productive use through the setting up of enterprise.
EDPS plays an active role in setting up of more units and thus helps in the generation of more employment and income.
Improvement in Standard of Living
Entrepreneur by adopting the latest innovation helps in the production of a wide variety of goods and services. By making efficient use of resources they start producing more of better quality and that too at lower costs.
Entrepreneur enables a country to produce a wide variety of better quality goods and services and that too at competitive prices. They develop substitutes for goods being imported and thus prevent over-dependence on foreign countries and at the same time help in the saving of precious foreign exchange.
FAQs About the Role of Entrepreneur in Economic Development
What is the role of entrepreneur in economic development?
The following is the role of entrepreneur in economic development:
1. Creation of Employment Opportunities
2. Capital Formation
3. Balanced Regional Development
4. Use of Local Resources
5. Improvement in Per-Capital Income
6. Improvement in Standard of Living
7. Economic Independence.