The Role of Entrepreneurship in Economic Development
The entrepreneurs with their ability to scan, analyze and identify opportunities in the environment transform them into business proposition through creation of economic entities. Entrepreneurship and economic development are intimately related. So, that entrepreneurial process is a major factor in economic development and the entrepreneur is the key to economic growth. Whatever be the form of economic and political set-up of the country, entrepreneurship is indispensable for economic development. Entrepreneurship is an approach to management that can be applied in start-up situations as well as within more established businesses. According to Joseph Schumpeter, the rate of economic progress of a nation depends upon its rate of innovation which is turn depends on rate of increase in the entrepreneurial talent in the population. According to Meir and Baldwin, development does not occur spontaneously as a natural consequence when economic conditions in some sense are right. A catalyst is needed which results in entrepreneurial activity to a considerable extent. The diversity of activities that characterizes rich countries can be attributed to the supply of entrepreneurs. They play a vital role for the economic development of a country in the following ways. 1. Effective Utilization of Resources: Entrepreneurship is all about putting to better use the resources which are considered to be of low value with an aim of earning income. An entrepreneur comes up with ideas of how to use what others may consider waste. This improves the economy of a country through taxes and creation of jobs which improves the standard of living of the beneficiaries. 2. Increasing Gross National Product and Per Capita Income: Entrepreneurs are always on the lookout for opportunities. They explore and exploit opportunities, encourage effective resource mobilization of capital and skill, bring in new products and services and develop markets for growth of the economy. In this way, they help increasing gross national product as well as per capita income of the people in a country. Increase in gross national product and per capita income of the people in a country, is a sign of economic growth. 3. Improvement in Physical Quality Of Life: Entrepreneurs supplement the economic growth by enhancing the physical quality of life. Establishment of enterprises leads to increase in employment avenues both directly and indirectly. Consequently, poverty is alleviated as per capita income grows. This results in improving the physical quality of life which is an indicator of economic growth.
4. Growth of Infrastructural Facilities: Entrepreneurs help in the growth of infrastructural facilities such as roads, bridges, buildings, factories, etc. which are the cornerstones of economic growth. Establishment of factories and industries in a particular locality presupposes the growth of infrastructural facilities. 5. Export Of Handicraft Items: Entrepreneurs play a significant role in producing and exporting handicraft items. They generally use the local traditional skill, traditional technology, local knowledge and experience for producing traditional art and craft and handicraft items. Nowadays, such items of Bangladesh are on demand in foreign markets - Hand-loom Products, Leather Products, Clay Products, Straw Art Products, Hand Made Paper Products, Wooden Products, Bamboo Products, Recycled Materials Products, Date-Leaf Products, Palm-Leaf Products, Jute Products, Recycled Glass, Ceramic, Cane Products, Embroidery Item, Palm Fiber Products, Tin Sheet Products & Christmas decoration Products etc .They are both exported to foreign markets and sold locally at markets in Bangladesh which has become immensely popular with foreigners, as well as the local people. 6. Promotes Capital Formation: Entrepreneurs promote capital formation by mobilizing the idle savings of public. They employ their own as well as...
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