Entrepreneurship

Its role... development

process ...

Entrepreneurship and
Economy...

Entrepreneurship is one of the most important

inputs in the economic development of a
country.

Entrepreneurs

play a

central

role

in the

economy by establishing firms, which in turn

create markets and organizations.

An

individual

engages

in

entrepreneurial

activities before the firm is established and

then becomes an owner after the firm is

Entrepreneurship and
Economy...

In India, Entrepreneurs have performed

below

expectations

due

to

different

problems like,

environmental related factors,

lack of focus on entrepreneurial activities

by governments,

frequent government policy changes

Entrepreneurship and
Economy...

Entrepreneurship Promotions should thus

ensure:

The availability or possession of managerial

capacity

And the acumen before pursuing financial

resources for the development of the
respective enterprise.

Role of Entrepreneurs in
Economic Development...

An

entrepreneur

takes

more

risk

for

the

organizational development.

Entrepreneur gives innovation to the industry.

This in turn bring innovation in terms of new

products, services, and ideas which ultimately
brings economic development of the country.

Role of Entrepreneurs in
Economic Development...

The entrepreneurs with their ability to scan,

analyze

and

identify

opportunities

in

the

environment to transform them into business

proposition through creation of economic entities.

They channelize the resources from less productive

to more productive use and create wealth.

Role of Entrepreneurs in
Economic Development...

Through the efficient and effective utilization

of national resources, they act as catalysts for
economic development.

They are the agents of social transformation

and change.

Role of Entrepreneurs in
Economic Development...

Computers,
machines,

mobile
ATMs,

phones,

Credit

Cards,

washing
Courier

Services, and Ready to eat Foods are all

examples of entrepreneurial ideas that got
converted into products or services of today.

Role of Entrepreneurs in
Economic Development...

Entrepreneurship is basically concerned with

creating wealth through production of goods
and services.

This results in a process of upward change

whereby the real per capita income of a
country rises overtime or in other words

Role of Entrepreneurs in
Economic Development...

The

sociologists

communities

and

feel

that

cultures

certain
promote

entrepreneurship

E.g., in India we say that Gujaratis and

Sindhis are very enterprising.

Role of Entrepreneurs in
Economic Development...

It speeds up the process of activating

factors of
higher

rate

production leading to a
of

economic

growth,

dispersal of economic activities and

development of backward regions.

Impact of Entrepreneurship in the

Economic Development of India
1. Capital Formation

Entrepreneurs by placing profitable business proposition

attract investment to ensure private participation in the
industrialization process.

Entrepreneurs promote capital formation by mobilizing the

idle savings of public.

They employ their own as well as borrowed resources

forsetting up their enterprises.

Entrepreneurial

activities

creats

wealth

and

thereby

industrial and economic development of the country takes

place.

Impact of Entrepreneurship in the

Economic Development of India
2. Generate Employment

Entrepreneur is not the job seekers but job creators and job
providers.

With the globalization process the government jobs are

shrinking leaving many unemployed, therefore, entrepreneurs
are

the

only

hope

and

source

of

direct

and

indirect

employment generation.

Entrepreneurs provide immediate large-scale employment to

the unemployed which is a chronic problem of underdeveloped
nations.

Impact of Entrepreneurship in the

Economic Development of India
3. Improve Standard of Living
l

Increased demand for goods andservices boost

up industrial activity.

Large scale production will result in economies of

scale and low cost of production

Impact of Entrepreneurship in the

Economic Development of India
4. Wealth Creation and Distribution
l

It stimulates equitable redistribution of wealth and

income in the interest of the country to more people
and geographic areas, thus giving benefit to larger
sections of the society.

Entrepreneurial activities also generate more

activities and give a multiplier effect in the economy.

Impact of Entrepreneurship in the

Economic Development of India
5. Increasing Gross National Product & Per
Capita Income
l

Entrepreneurs convert the latent and idle resources like land,

labor and capital into goods and services resulting in increase in
the national income and wealth.

The increase in national income is the indication of increase in

net national product and per capita income of the country.

They explore and exploit opportunities, encourage effective

mobilization of capital and skills, bring in new products &
services, and thereby develops markets for growth of the

Impact of Entrepreneurship in the

Economic Development of India
6. Promotes Country's Export Trade
l

Entrepreneurs help in promoting a country's exporttrade, which is an important ingredient of economy.

They produce goods and services in large scale for the

purpose of earning foreign exchange from export in
order to combat the import dues requirements.

Hence import substitution and export promotion ensure

economic independence, development and equilibrium
in B-O-P.

Impact of Entrepreneurship in
the Economic Development of
India
7. Facilitates Overall Development
l

Entrepreneurs

act

as

catalytic

agent

for

change which results in chain reaction.

l

Once an enterprise is established, the process

of industrialization is set in motion, this
generates
ancillary

demand
and

for

support

various
services

types
units

of
and

Difference in
Entrepreneur and Intrapreneur
Basis

Entreprene
Intrapreneur
ur

Capacity

Owner

An manager

Status

Own boss

Salaried
employee

Decisions Takes own

decisions
Reward

Executes
decisions with the
Uncertain and
concurrence of
unlimited
owner
Fixed rewards

Difference in
Entrepreneur and Promoter
Basis

Stage
business

Entrepreneur
Promoter
of
From To bring a business
conception to into existence
continuation
May or may not own
Owns
the

Owning
enterprise
business
Highly specialised
Nature of job
Example

Includes
A consultant or a
everything
chartered account and
offering services
Any business

Thank You,
All!