In the economic development of a region or country, entrepreneurship plays an important role. Entrepreneurship helps in the growth of industries and economy. When an entrepreneur starts an enterprise, there is one more count in industry counting. He provides product and services to his consumers, starts earning. He pays to the government of region or country in form of taxes. Earning of entrepreneur and government helps in the growth of economy of the country.
With the following points you will understand the need of entrepreneurship:
- Capital formation: Entrepreneur deploy the savings of people for using of national resources in productive way. This increases the capital formation, which is important for growing the economy rapidly.
- Improve per capita income: Entrepreneurs uses the idle resources like land, labour and capital in his enterprise for producing goods and services. By this, they earn and there is increase in per capita income, which is a main factor for measuring the economic growth of the nation.
- Employment Generation: Entrepreneurs starts an enterprise, generates employment for themselves as well as for others too in manner of office staff, workers in productions and others. This will help in reducing the unemployment rate.
- Balanced regional development: Entrepreneurs establishes industries in various locations of the country. They setup their industry in backward area to avail subsidy and other various concession by the government. This will also develop backward areas.
- Independence of Economy: Entrepreneurship is essential for national self-reliance. We don’t have to depend on other countries for importing products, which are manufacturing in our own country. This saves a lot of foreign exchange. Also, entrepreneurs exports there goods and services and earn foreign exchange for there country. Reduction in import and hike in export helps to ensure economic independence of country.
- Restriction of Monopoly: Entrepreneurs usually starts small scale industries and provide goods and services to consumers at competitive prices. Hence, Restrict monopoly of big business companies.
- Utilization of resources: Various raw material is scattered in small quantity throughout the country. Small Entrepreneurs utilize such unused small quantity of material for making of useful products.