Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
||Volume||4||Issue||06||Pages||4262-4269||2016||
Website: www.ijsrm.in ISSN (e): 2321-3418
Email id :- amrita.dhaliwal11@yahoo.com
Abstract
The study tells that the entrepreneur acts as a trigger head to give spark to economic activities by his
entrepreneurial decisions. He plays a pivotal role not only in the development of industrial sector of a
country but also in the development of farm and service sector. Entrepreneurs are like gamblers, and like
any gambler, their chances of winning increase if they have the right cards. The role of entrepreneurship in
economic development varies from economy to economy depending upon its material resources, industrial
climate and the responsiveness of the political system to the entrepreneurial function .Path breaking
offerings by entrepreneurs, in the form of new goods & services, result in new employment, which can
produce a cascading effect or virtuous circle in the economy .If we understand the benefits and drawbacks, a
balanced approach to nurturing entrepreneurship will definitely result in a positive impact on economy and
society.
Amrita Dhaliwal, IJSRM volume 4 issue 6 June 2016 [www.ijsrm.in] Page 4262
DOI: 10.18535/ijsrm/v4i6.08
Bill Gates, founder of Microsoft. There are the market, like the first cellular phone. On
probably not many people that have not the other hand, they can radically improve
been touched by one of his products, such upon something in a dramatic way, just
as Microsoft Windows, Microsoft Office like the iPhone changed the world of smart
and Internet Explorer. phones.
Steve Jobs, co-founder of Apple
computers, which produces Macs, iPods Initiative is also required. Entrepreneurs
and iPhones, as well as Apple TV. lead. If you are not willing to start without
Mark Zuckerberg, the founder of being pushed, your new business will
Facebook. never get off the ground. For example,
Pierre Omidyar, founder of eBay. Eddie had an idea fresh out of college and
Arianna Huffington, founder of the took the initiative to start his business
Huffington Post, a well-known online venture. No one had to convince him to
news site. act; he just acted.
Caterina Fake, co-founder of Flikr, which
hosts images and videos on the internet. Independence is also a paramount attribute
for entrepreneurs. Nobody holds an
Characteristics & Skills entrepreneur's hand, and they don't want
Entrepreneurs are like gamblers, and like any any hand-holding. Successful
gambler, their chances of winning increase if they entrepreneurs must be willing to go it
have the right cards. Let's look at some alone and succeed or fail on their own
characteristics and skills that help an entrepreneur effort without relying much on the other
succeed. people.
Amrita Dhaliwal, IJSRM volume 4 issue 6 June 2016 [www.ijsrm.in] Page 4263
DOI: 10.18535/ijsrm/v4i6.08
potentials of the countries availability of resources Thus, in both the classical theories of economic
such as labour, capital and technology. development, there is no room for
entrepreneurship. And, economic development
Role of entrepreneurs in Economic seems to be automatic and self-regulated. Thus,
Development the attitude of classical economists was very cold
The role of entrepreneurs is not identical in the towards the role of entrepreneurship in economic
various economies. Depending on the material development. They took the attitude: “the firm is
resources, industry climate and responsiveness of shadowy entity and entrepreneur even shadowed
the political system, it varies from economy to or at least is shady when he is not shadowy.” The
economy. The contribution of entrepreneurs may economic history of the presently developed
be more in favourable opportunity conditions than countries, for example, America, Russia and Japan
in economies with relatively less favourable tends to support the fact that the economy is an
opportunity conditions. effect for which entrepreneurship is the cause.
Adam Smith, the foremost classical economist, The crucial role played by the entrepreneurs in the
assigned no significance to entrepreneurial role in development of the Western countries has made
economic development in his monumental work‟ the people of underdeveloped countries too much
An Enquiry into the Nature and Causes of the conscious of the significance of entrepreneurship
Wealth of Nations‟, published in 1776. Smith for economic development. Now, people have
extolled the rate of capital formation as an begun to realize that for achieving the goal of
important determinant of economic development. economic development, it is necessary to increase
entrepreneurship both qualitatively and
quantitatively in the country. It is only active and
enthusiastic entrepreneurs who fully explore the
The problem of economic development was ergo
potentialities of the country‟s available resources
largely the ability of the people to save more and
– labour, technology and capital.
invest more in any country. According to him,
ability to save is governed by improvement in Schumpeter (1934) visualised the entrepreneur as
productivity to the increase in the dexterity of the key figure in economic development because
every worker due to division of labour. Smith of his role in introducing innovations. Parson and
regarded every person as the best judge of his own Smelser (1956) described entrepreneurship as one
interest who should be left to pursue his own of the two necessary conditions for economic
advantage. According to him, each individual is development, the other being the increased output
led by an „invisible hand‟ in pursuing his/her of capital.
interest. He always advocated the policy of
laissez-faire in economic affairs. Harbison (1965) includes entrepreneurs among the
prime movers of innovations, and Sayigh (1962)
In his theory of economic development, David simply describes entrepreneurship as a necessary
Ricardo identified only three factors of dynamic force. It is also opined that development
production, namely, machinery, capital and does not occur spontaneously as a natural
labour, among whom the entire produce is consequence when economic conditions are in
distributed as rent, profit and wages respectively. some sense „right‟: a catalyst or agent is always
Ricardo appreciated the virtues of profit in capital needed, and this requires an entrepreneurial
accumulation. According to him, profit leads to ability.It is this ability that he perceives
saving of wealth which ultimately goes to capital opportunities which either others do no see or care
formation. about. Essentially, the entrepreneur searches for
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DOI: 10.18535/ijsrm/v4i6.08
change, sees need and then brings together the their enterprises on a small-scale. As imitation
manpower, material and capital required to requires lesser funds than innovation, it is realized
respond the opportunity what he sees. that such regions should have more imitative
entrepreneurs. And, it is also felt that imitation of
innovations introduced in developed regions on a
Akio Morita, the President of Sony who adopted massive scale can bring about rapid economic
the company‟s products to create Walkman development in underdeveloped regions also. But,
Personal Stereo and India‟s Gulshan Kumar of T- it does not mean that such imitation requires in
Series who skimmed the audio-cassette starved any way lesser ability on the part of entrepreneurs.
vast Indian market are the clearest examples of In this regard, Berna opines:“It involves often
such able entrepreneurs. what has aptly been called „subjective innovation‟,
The role of entrepreneurship in economic that is, the ability to do things which have not
development varies from economy to economy been done before by the particular industrialists,
depending upon its material resources, industrial even though unknown to him, the problem may
climate and the responsiveness of the political have been solved in the same way by the others.”
system to the entrepreneurial function. The These imitative entrepreneurs constitute the main
entrepreneurs contribute more in favourable spring of development of underdeveloped region
opportunity conditions than in the economies with Further, India which itself is an underdeveloped
relatively less favourable opportunity conditions. country aims at decentralized industrial structure
Viewed from the opportunity conditions point of to militate the regional imbalances in levels of
view, the underdeveloped regions, due to the economic development, small-scale
paucity of funds, lack of skilled labour and non- entrepreneurship in such industrial structure plays
existence of minimum social and economic an important role to achieve balanced regional
overheads, are less conducive to the emergence development.
particularly of innovative entrepreneurs. In such It is unequivocally believed that small-scale
regions, entrepreneurship does not emerge out of industries provide immediate large- scale
industrial background with well developed employment, ensure a more equitable distribution
institutions to support and encourage it. Therefore, of national income and also facilitate an effective
entrepreneurs in such regions may not be an resource mobilization of capital and skill which
“innovator” but an “imitator” who would copy the might otherwise remain unutilized. The
innovations introduced by the “innovative” establishment of Entrepreneurship Development
entrepreneurs of the developed regions (Brozen Institutes and alike by the Indian Government
1954-55). during the last decades is a good testimony to her
In these areas, according to McClelland‟s (1961) strong realisation about the premium mobile role
concept of personality aspect of entrepreneurship, of entrepreneurship plays in economic
some people with high achievement motivation development of the country.
come forward to behave in an entrepreneurial way The important role that entrepreneurship plays in
to change the stationary inertia, as they would not the economic development of an economy can
be satisfied with the present status that they have now be put in a more systematic and orderly
in the society. manner as follows:
Under the conditions of paucity of funds and the Promotes Capital Formation:-
problem of imperfect market in underdeveloped Entrepreneurs promote capital formation
regions, the entrepreneurs are bound to launch by mobilising the idle savings of public.
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DOI: 10.18535/ijsrm/v4i6.08
They employ their own as well as balanced regional development. When the
borrowed resources for setting up their new entrepreneurers grow at a faster rate,
enterprises. Such type of entrepreneurial in view of increasing competition in and
activities lead to value addition and around cities, they are forced to set up
creation of wealth, which is very essential their enterprises in the smaller towns away
for the industrial and economic from big cities. This helps in the
development of the country. development of backward regions.
Creates Large-Scale Employment Reduces Concentration of Economic
Opportunities:-Entrepreneurs provide Power:-Economic power is the natural
immediate large-scale employment to the outcome of industrial and business
unemployed which is a chronic problem activity. Industrial development normally
of underdeveloped nations. With the lead to concentration of economic power
setting up. of more and more units by in the hands of a few individuals which
entrepreneurs, both on small and large- results in the growth of monopolies. In
scale numerous job opportunities are order to redress this problem a large
created for others. As time passes, these number of entrepreneurs need to be
enterprises grow, providing direct and developed, which will help reduce the
indirect employment opportunities to concentration of economic power amongst
many more. In this way, entrepreneurs the population.
play an effective role in reducing the Wealth Creation and Distribution:-It
problem of unemployment in the country stimulates equitable redistribution of
which in turn clears the path towards wealth and income in the interest of the
economic development of the nation. country to more people and geographic
Growing unemployment particularly areas, thus giving benefit to larger
educated unemployment is the problem of sections of the society. Entrepreneurial
the nation. The available employment activities also generate more activities and
opportunities can cater only 5 to 10 % of give a multiplier effect in the economy.
the unemployed. Entrepreneurs generate Increasing Gross National Product and
employment both directly and indirectly. Per Capita Income:-Entrepreneurs are
Directly, self employment as an always on the look out for opportunities.
entrepreneur and indirectly by starting They explore and exploit opportunities,,
many industrial units they offer jobs to encourage effective resource mobilisation
millions. Thus entrepreneurship is the best of capital and skill, bring in new products
way to fight the evil of unemployment. and services and develops markets for
Promotes Balanced Regional growth of the economy. In this way, they
Development:- Entrepreneurs help to help increasing gross national product as
remove regional disparities through well as per capita income of the people in
setting up of industries in less developed a country. Increase in gross national
and backward areas. The growth of product and per capita income of the
industries and business in these areas lead people in a country, is a sign of economic
to a large number of public benefits like growth. . An increasing number of
road transport, health, education, entrepreneurers are required to meet this
entertainment, etc. Setting up of more increasing demand for goods and services.
industries lead to more development of Thus entrepreneurship increases the
backward regions and thereby promotes national income.
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