Question

In the realm of economic development, how does the role of entrepreneurs impact the overall growth and stability of a nation.

Answer 1

Entrepreneurs play an important role in production. In every type of production, an element of risk always exists. It is only the entrepreneur who bears risks involved in business. It is due to this fact that entrepreneurship is regarded as an indispensable factor of production.

1. Increase in Output: The size of national income which is the essential goal of economic development a nation is largely determined by the amount and quality of entrepreneurial resources. A country will be able to produce a large amount of output and generate a large national income if it possesses a large number of entrepreneurs with a modern outlook.
2. Mobilisation of Savings: By establishing the production units, entrepreneurs invest their own resources and attract capital through the issues of shares and debentures. Investment of these public savings in industry results in capital formation which is regarded crucial for economic development.
3. Generation of Employment Opportunities
4. Balanced Regional Development
5. Less Dependence on Other Countries