Post on 19-Feb-2016
description
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 established.
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 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.
Entrepreneurship and Economy...
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.
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, mobile phones, washing
machines, ATMs, Credit Cards, 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
economic development takes place.
Role of Entrepreneurs in Economic Development...
The sociologists feel that certain
communities and cultures 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 production leading to a
higher rate of economic growth,
dispersal of economic activities and
development of backward regions.
Role of Entrepreneurs in Economic Development...
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.
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.
With the setting up of more and more units by entrepreneurs, both on small and large-scale, numerous job opportunities are created.
Impact of Entrepreneurship in the Economic Development of India
3. Improve Standard of Living
l Increased demand for goods andservices boost
up industrial activity.
l 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.
l 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.
l The increase in national income is the indication of increase in net national product and per capita income of the country.
l 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 economy.
Impact of Entrepreneurship in the Economic Development of India
6. Promotes Country's Export Tradel Entrepreneurs help in promoting a country's export-
trade, which is an important ingredient of economy.
l 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.
l 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 demand for various types of ancillary and support services units and thereby creates multiplier effect.
Impact of Entrepreneurship in the Economic Development of India
Difference in Entrepreneur and Intrapreneur
Basis Entrepreneur Intrapreneur
• Capacity• Status • Decisions
• Reward
— Owner— Own boss— Takes own decisions — Uncertain and
unlimited
— An manager— Salaried employee— Executes decisions
with the concurrence of owner
— Fixed rewards and salary
Difference in Entrepreneur and PromoterBasis Entrepreneur Promoter
• Stage of business
• Owning business
• Nature of job
• Example
— From conception to continuation
—Owns the enterprise
— Includes everything
— Any business
— To bring a business into existence
— May or may not own
— Highly specialised
— A consultant or a chartered account and offering services
Thank You, All!