Functions (Role) of Entrepreneurs in Relation to Economic Development:
1. Contribution to GDP:
Entrepreneurs explore and exploit opportunities, encourage effective resource mobilisation of capital and skill, bring in new products and services and develops markets for growth of the economy. In this way, they help increasing gross national product (GDP) as well as per capita income of the people in a country.
2. Capital Formation:
Entrepreneurs promote capital formation by mobilising the idle savings of public. They employ these resources for setting up an enterprise.
3. Generation of Employment:
With the setting up of more and more business units by entrepreneurs, a large number of employment opportunities are created.
4. Promotes Balanced Regional Development:
Entrepreneurs help to remove regional disparities through setting up of industries in less developed and backward areas.
5. Reduces Concentration of Economic Power:
A large number of entrepreneurs needs to be developed, which will help reduce the concentration of economic power amongst the population.
6. Improvement in the Standard of Living:
Entrepreneurs enables the people to avail better quality goods at lower prices which results in the improvement of their standard of living.
7. Promotes Export Trade:
Entrepreneurs help in promoting a country’s export-trade, which is an important ingredient of economic development.
8. Facilitates Overall Development:
The entrepreneurs multiply their entrepreneurial activities, thus creating an environment of enthusiasm and invite others for overall development of the area.
