Question

The relationship between entrepreneurship and economic development can be highlighted with the. help, of which of the following functions performed by entrepreneurs? .

विकल्प

• Contribution to GDP

• Capital Formation

• Generating Employment

• All of the above

Answer 1

All of the above

Explanation - 

1. Contribution to GDP : 

   Increases in GDP are frequently linked to economic development. Entrepreneurs who engage in productive activities directly contribute to the growth of wealth of earnings Aside from the procedure, he appoints numerous production aspects like as as well as land, labour, and capital In exchange for the services rendered, and production factors receive money Land is rented, and labour is paid. Interest is paid on salaries and capital, and These figures contribute to the GDP.

2. Capital Formation : The rate of capital formation is directly proportional to an economy's GDP. The higher the targeted rate of GDP growth, the higher the rate of capital production necessary. Entrepreneurs invest their own money as well as borrow money from others. They also contribute to the capital formation process.
3. Generating Employment : Many people are not able to earn a living due to lack-of opportunities. A new business provides employment opportunity to such people and act as a  source to earn livelihood. An entrepreneur by setting up a business provides employment directly as well as indirectly. For instance, it provides employment to labourers building up a factory, to people who will be working in the production process, etc.