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Role of Entrepreneurship in Economic Development

As an entrepreneur you should look for marketing in social media. Social media is one the best methods of marketing to a wider audience nowadays and businesses that ignore this strategy are likely to face a loss.

Not only is social media marketing highly effective and budget-friendly, but there are also websites that allow businesses to buy YouTube views and put them into effect in enabling economic growth and development. Entrepreneurship is one of the most essential inputs in economic development.

You, as an entrepreneur, act as a catalyst guide to give a spur to economic activities by your entrepreneurial decisions. You play a crucial role not only in the development of the industrial sector of a country but also in the development of the firm and service sector.

Below are some of the roles of entrepreneurship in  economic development;

  1. Promotes Capital

As an Entrepreneur, you promote capital formation by mobilizing the available savings of the public. You employ your own, as well as borrowed resources for setting up your enterprises.

 Such entrepreneurial workouts guide to value addition and the generation of wealth, which is important for the industrial and economic development of the country.

  • Creates Large-Scale Employment

As an entrepreneur, you will give sudden large-scale employment to the unemployed, which is a problem in underdeveloped countries. When you set up more and more small and large-scale firms, you will create numerous job opportunities.

As time goes by your enterprises will grow, providing direct and indirect employment opportunities to many more people.  In this way, you will play a useful role in reducing the problem of unemployment in the country which in turn opens the path towards the economic development of the nation.

  • Promotes Balanced Regional Development: 

You being an entrepreneur you will help to reduce regional differences through setting up industries in less developed areas. Through the development of your industries and business in these regions, it will lead to a large number of public benefits like road transport, health, education and entertainment.

When you put up additional enterprises they will lead to more development of undeveloped regions and thus promote balanced regional development.

  • Wealth Creation and Distribution:  

Your enterprises will help in boosting equitable redistribution of wealth and income in the interest of the country to many people and geographic areas, thus offering benefits to larger sections of the nation.

Your activities as an entrepreneur will also create more workouts and give a multiplier effect on the economy.

  • Increase in  National  Gross Product and Per Capita Income:  

As an entrepreneur, you will always be on the lookout for opportunities. You will explore and utilize opportunities, encourage useful resource mobilization of capital and skill, bring in new products and services and develop markets for the growth of the economy.

In this way, you will help in increasing sing gross national product as well as the per capita income of the people in a country and this is a sign of economic growth.

  • Improvement in the Standard of Living:  

As an Entrepreneur, you play a central role in raising the people’s standard of living by producing a large variety of goods and services on a large scale at a lower cost.

This allows the people to use better quality goods at lower prices which impacts the improvement of their standard of living.

  • Promotes Country’s Export Trade:  

Being an entrepreneur, you will help promote the country’s export trade, an essential ingredient of economic development.

 This is because you will yield goods and services in colossal order to earn a large amount of foreign exchange from export to withstand the import dues requirement. Thus,  promoting export trade.

  • Facilitates Overall Development:

As an  Entrepreneur, you will act as a catalytic agent for change which results in a chain reaction. Once as an enterprise, you are established, industrialization is set in action. This firm will create demand for different varieties of units required, and there will be so many other firms that need the output of this unit.

This leads to the general development of an area due to increased demand and the put up of more and more firms. In this way, you will increase your entrepreneurial activities, thus creating an environment of confidence and triggering the area’s overall development.

Conclusion

The role of entrepreneurship in economic development differs from time to time based on the accessibility of resources and the climate of industries; It is crystal clear that Entrepreneurship acts as a trigger in developing its economy.

Kin
Tech enthusiast among other things, i don't really like exposing myself :)

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