Supplementing And

Complementing Economic Growth

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 Mobilization of Capital
Entrepreneurs efforts to mobilize the capital results
in motivating the investors to divert their ideal
savings in the industrial enterprises. Investment of
public saving in industrial sector helps the country
to use financial resources for productive purposes.
The growth rate of capital formation will be
increased which is highly essential for rapid
economic development of a country. It is in the
sense that entrepreneurs grenade capital at a rapid
rate and capital formation increases which is vital
for the industrial development.

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 Generation of Employment
Entrepreneurs become self-employed and self-
sufficient. They do not depend on the
government jobs or private jobs and directly
employ themselves by starting their own
enterprises. In fact, they also privet jobs to many
unemployed by setting up large and small scale
industrial. Thus, entrepreneurs play an
important role to reduce the unemployment
problem in the country and pave the way for
economic development
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 Backward and Forward Linkages
It is the entrepreneur who initiatives change and
this to maximize his profits by innovations.
Setting up of an enterprise in accordance with
the changing technology has several backward
and forward linkages. For example, the
establishment of a textile unit generates several
ancillary units and expands demand for cotton,
chemicals, dyes, etc.

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 Others
Balanced regional development
Improvement of per capita income
Improvement of Standard of living
Import substitution and export promotion

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 Supplementing And Complementing
Economic Growth
Schumpeter postulates that the rate of economic progress of a country
depends largely upon its rate of innovation, which in turn, depends
upon the entrepreneurial talents. According to Schumpeter,
technological development cannot alone bring about economic growth
unless they are put to practical use by the entrepreneurs. Similarly,
Peter Drucker has also emphasized that this is the age of
entrepreneurial society. Economic development and growth of a
country depends to a great extent upon effective entrepreneurship. In
his opinion, 92 entrepreneur plays a crucial role for the creation of
new small enterprises that energize the economic structure. Through
constant creativity, new businessmen/entrepreneurs assure a strong
economy and rising national income.

Thus, the role of entrepreneur is important, as it is not only

complements but also supplements the economic growth of the
Country

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