Entrepreneurs play a significant role in the economic development of a country. He promotes the prosperity of a nation through his innovation and dynamic leadership Skills. He creates wealth, opens up employment opportunities, and fosters the other segments. Entrepreneurs are prime movers of innovation and growth and as such, entrepreneurship is a dynamic force.
Role of Entrepreneurs
The significance and role of entrepreneurs are explained below:
- Bringing Economic Growth and Prosperity
- Bringing Social Stability and Balanced Regional Development
- Innovator in Economic Growth
- Creation of Employment Opportunities
- Increase Productivity with a Modern Production System
- Export Promotion and Import Substitution
- Entrepreneur Plays a Role of Catalytic Agent
- Augmenting and Meeting Local Demands
- Reinventing Entrepreneurial Venture
Bringing Economic Growth and Prosperity
Entrepreneurs boost a country’s economy by creating jobs, wealth, and capital. They increase per capita income, and GDP, and improve living standards, infrastructure, and social connections.
They also help underdeveloped regions and promote economic independence. Entrepreneurs are crucial for economic well-being globally. In underdeveloped nations, they drive economic growth and are the backbone of capitalism.
Bringing Social Stability and Balanced Regional Development
Entrepreneurs play a vital role in achieving social stability and balanced regional development. They do this by creating jobs, reducing poverty, improving healthcare and education, promoting fair competition, ensuring income equality, building social infrastructure, empowering women and marginalized groups, and providing high-quality goods and services.
Although some criticize entrepreneurs as self-interested, Adam Smith recognized that, despite their self-interest, they unintentionally benefit society as a whole by advancing its interests.
Innovator in Economic Growth
Entrepreneurs drive economic growth by introducing new ideas, products, technologies, and markets. They leverage technical knowledge, promote innovation, advance technology, and apply mechanical skills. They play a crucial role in fostering entrepreneurship and economic development.
Peter Drucker emphasizes that innovation and entrepreneurship must become essential activities in our organizations, economy, and society, much like management. He believes that the rise of a truly entrepreneurial economy is a significant and promising development in recent economic and social history.
Creation of Employment Opportunities
Entrepreneurs play a significant role in the generation of employment opportunities by establishing new units in manufacturing, trading, and service sectors, laying emphasis on small-scale industries, utilizing the surplus labor force in varied industrial and/or service activities, and upholding self-employment as a core objective. Entrepreneur integrates resources and technologies into profitable business ventures and creates job opportunities.
Increase Productivity with a Modern Production System
Entrepreneurs significantly boost productivity by improving production methods. This involves research and development as well as investing in new equipment. Entrepreneurship plays a crucial role in both of these areas.
Entrepreneurs are innovators who generate demand, create markets, raise capital, develop opportunities, and innovate technology. They seek uniqueness, marketing breakthroughs, and novel designs, reshaping public desires and creating wealth and jobs. Instead of simply following markets, they lead and shape them.
Export Promotion and Import Substitution
Liberalization, privatization, and globalization [LPG] have opened the arena of export promotion and import substitution to entrepreneurs by establishing industries producing import substitution goods, establishing new industries, especially for export, products, exploration of new global markets, earning foreign exchange reserves, utilizing the available productive resources, achieving self-reliance in production of as many goods as possible, entrepreneur, are playing a pivot role in export promotion and import substitution.
Entrepreneur Plays a Role of Catalytic Agent
As Joseph Schumpeter says, an entrepreneur’s task is “creative destruction”. He destroys to create new things. He changes and transmutes values. He searches for change and responds to it. He is a change creator.
Ralph Harwitz writes in his book Realities of Profitability’, “The entrepreneur makes a happening, wants a piece of the action, is the growth man. Without him there is no happening, no action, and no growth”.
Augmenting and Meeting Local Demands
Entrepreneurs also play a significant role in augmenting local demands and meeting them satisfactorily. Towards this entrepreneurs focus their attention on manufacturing services through indigenous technology, skills, resources, and experiences.
Reinventing Entrepreneurial Venture
An entrepreneur works to reinvent his entrepreneurial venture. He knows that change and innovation are good for his organization. Paul Wilken observes, “Entrepreneurship is a discontinuous phenomenon, appearing to initiate changes in the production process and then disappearing until it reappears to initiate another change”.
Zoltan Acs writes, “Entrepreneurs stir up the waters of competition in the marketplace. They are ‘agents of change in a market economy”.
FAQs Section about the Role of Entrepreneurs
What are the role of entrepreneurs?
The following are the roles of entrepreneurs:
1. Bringing Economic Growth and Prosperity
2. Bringing Social Stability and Balanced Regional Development
3. Innovator in Economic Growth
4. Creation of Employment Opportunities
5. Increase Productivity with a Modern Production System
6. Export Promotion and Import Substitution
7. Entrepreneur Plays a Role of Catalytic Agent
8. Augmenting and Meeting Local Demands
9. Reinventing Entrepreneurial Venture.