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Sayantika ChatterjeeTop Contributor
I am a literature student from University of Calcutta and came here to contribute.
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How entrepreneurship is linked with economic development?

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Sayantika ChatterjeeTop Contributor
I am a literature student from University of Calcutta and came here to contribute.
  • The role of entrepreneurship in economic development varies from economy to economy depending upon its material resources, industrial climate and the responsiveness of political system to the entrepreneurial functions. 
  • It is the best alternate to overcome unemployment and poverty. It creates and builds from practically nothing. 
  • Entrepreneurship is of great importance when it comes about capitalist and mixed economy, where not only the responsibilities of entrepreneur in production and distribution are recognised but the objective of growth of business and profit maximisation is also attained. 
  • An entrepreneur has a critical role in the competitive market economy, especially in a country like India. He or she acts like a trigger head to give spark to economic activities.
  • It increases income and per capita income. He or she brings in new products and services and develops new market for growth of economy. 
  • Entrepreneurship involves initiating and constituting economic growth and change. 
  • It leads to value addition and creation of wealth and capital in the structure of business and society. This change is accompanied by growth and increased output which allows more wealth to be divided.
  • Entrepreneurs understand and take up product evolution process. This is a process where innovation develops and an entrepreneur commercialises the new products. 
  • It promotes balanced regional development.