An entrepreneur is a person who understands a need and identifies the problem then brings together manpower, Raw materials and required capital that meets desired needs. In other meaning, an entrepreneur is an individual or group that identifies the opportunity, Develop solution, congregate the required resources, creates and in the long run it responsible for the performance of the organization.
Role of Entrepreneur in Economic growth
An entrepreneur is essential in this modern era. The position of the entrepreneur in the modern production of our country is like that of the director of a good play. The entrepreneur is playing a crucial role in the economic growth of a country. He directs production and does whatever is necessary for its success.
There are three aspects of modern economic development in Entrepreneurship:
- Co-ordinates the factors of production
The entrepreneur harmonizes the other factors of production like land, labor, capital, and entrepreneur. This is not only involved in assembling the factors but also to see the best combinations of factors that are available for the production process.
- Take risks
The entrepreneur bears risks to reach his goal. This is the important aspect of the entrepreneur and the quantum of profit which he receives is opposite(directly proportionate) to the risks he takes. Risks generally happen in anticipation of demand.
At last, the entrepreneur is an innovation that is different from invention. Invention means the work of scientists where innovation implies the commercial application of an invention. The entrepreneur introduces a new quality of goods and services, new methods of production, opens a new market and carrying out a new organization of any industry.
Importance of Entrepreneur in Economic Development
Every country tries to achieve maximum economic development to a large extent depends on human resources. But Human resources alone will not develop the economy. Importances of entrepreneurs in economic development are:
- Decrease unemployment of the country:
Raising unemployment particularly educated jobless people is an acute problem of the nation. at least a hundred persons become an entrepreneur in our country they not only create a hundred jobs for themselves but also provide employment opportunity to many more people. So, Entrepreneurship is the best way to fight against unemployment.
- Increase in National Income:
NI consists of goods & services produced in the country. The goods & services produced for consumption within the country as well as to meet the demand exports. The domestic demand and export demand increases as per increasing population and standard of living of people of the country and also to meet the needs of growing import due to various reasons. So, Entrepreneurship increases the National Income of the country.
- Exploit available resources and local entrepreneurship:
Our country is considered to be very rich in natural resources. The real strength of industrialization in backward areas depends on the involvement of local entrepreneurship in pioneering efforts. Activities of local entrepreneurs will result in making use of extremely available local resources.
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