Role of Entrepreneurs in Economic Development

The entrepreneur who is a business leader looks for ideas and puts them into effect in fostering economic growth and development. Entrepreneurship is one of the most important input in the economic development of a country. 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. The major roles played by an entrepreneur in the economic development of an economy is discussed in a systematic and orderly manner as follows. (1) Promotes Capital Formation: Entrepreneurs promote capital formation by mobilising the idle savings of public. They employ their own as well as borrowed resources for setting up their enterprises. Such type of entrepreneurial activities lead to value addition and creation of wealth, which is very essential for the industrial and economic development of the country. (2) Creates Large-Scale Employment Opportunities: Entrepreneurs provide immediate large-scale employment to the unemployed which is a chronic problem of underdeveloped nations. With the setting up.of more and more units by entrepreneurs, both on small and large-scale numerous job opportunities are created for others. As time passes, these enterprises grow, providing direct and indirect employment opportunities to many more. In this way, entrepreneurs play an effective role in reducing the problem of unemployment in the country which in turn clears the path towards economic development of the nation. (3) Promotes Balanced Regional Development: Entrepreneurs help to remove regional disparities through setting up of industries in less developed and backward areas. The growth of industries and business in these areas lead to a large number of public benefits like road transport, health, education, entertainment, etc. Setting up of more industries lead to more development of backward regions and thereby promotes balanced regional development. (4) Reduces Concentration of Economic Power: Economic power is the natural outcome of industrial and business activity. Industrial development normally lead to concentration of economic power in the hands of a few individuals which results in the growth of monopolies. In order to redress this problem a large number of entrepreneurs need to be developed, which will help reduce the concentration of economic power amongst the population. (5) Wealth Creation and Distribution: It stimulates equitable redistribution of wealth and income in the interest of the country to more people and geographic areas, thus giving benefit to larger sections of the

society. Entrepreneurial activities also generate more activities and give a multiplier effect in the economy. (6) Increasing Gross National Product and Per Capita Income: Entrepreneurs are always on the look out for opportunities. They 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 as well as per capita income of the people in a country. Increase in gross national product and per capita income of the people in a country, is a sign of economic growth. (6) Improvement in the Standard of Living: Increase in the standard of living of the people is a characteristic feature of economic development of the country. Entrepreneurs play a key role in increasing the standard of living of the people by adopting latest innovations in the production of wide variety of goods and services in large scale that too at a lower cost. This enables the people to avail better quality goods at lower prices which results in the improvement of their standard of living. (7) Promotes Country's Export Trade: Entrepreneurs help in promoting a country's export-trade, which is an important ingredient of economic development. They produce goods and services in large scale for the purpose earning huge amount of foreign exchange from export in order to combat the import dues requirement. Hence import substitution and export promotion ensure economic independence and development. (8) Induces Backward and Forward Linkages: Entrepreneurs like to work in an environment of change and try to maximise profits by innovation. When an enterprise is established in accordance with the changing technology, it induces backward and forward linkages which stimulate the process of economic development in the country.

(9) Facilitates Overall Development: Entrepreneurs act as catalytic agent for change which results in chain reaction. Once an enterprise is established, the process of industrialisation is set in motion. This unit will generate demand for various types of units required by it and there will be so many other units which require the output of this unit. This leads to overall development of an area due to increase in demand and setting up of more and more units. In this way, the entrepreneurs multiply their entrepreneurial activities, thus creating an environment of enthusiasm and conveying an impetus for overall development of the area.

Entrepreneurs occupy a central position in a market economy. For it's the entrepreneurs who serve as the spark plug in the economy's engine, activating and stimulating all economic activity. The economic success of nations worldwide is the result of encouraging and rewarding the entrepreneurial instinct. A society is prosperous only to the degree to which it rewards and encourages entrepreneurial activity because it is the entrepreneurs and their activities that are the critical determinant of the level of success, prosperity, growth and opportunity in any economy. The most dynamic societies in the world are the ones that have the most entrepreneurs, plus the economic and legal structure to encourage and motivate entrepreneurs to greater activities.

Training and Entrepreneurs Role in Economic Development Training in Entrepreneurship Development

Training is very important element and indirectly plays an important role in economic development perhaps good training leads to successful skills of work A person who invests his resources to perform an economic activity is an Entrepreneur. Entrepreneurs share certain common characteristics that include ability to hard work, innovativeness, risk taking and a vision. It is common to associate the process Entrepreneurship with uncertainty, especially when introducing something that doesnt have a market yet. Hence an Entrepreneur must be able to seize right business opportunity. This program introduces to the concept of Entrepreneurship and guides through complex process of setting up a business. It provides instructions on business planning and financial statements, possible sources of capital, the role of support agencies, and Entrepreneurship development programs Once the candidates have completed their training, they can take the exam required for certification. You can enroll for our programs of training by paying through four options: 1.Youcan pay online using your credit card 2. We can send a person to collect the cheque from your home or office. just send us your address 3. You can put a cheque in one of the HDFC bank branches or at ATM centres 4. You can always courier the cheque to us .please call us or write to us for our postal address Payments can be made by cheque/DD in favor of IACT GLOBAL.

In the era of liberalization, privatization and globalization along with ongoing IT revolution, capable entrepreneurs are making use of the opportunities emerging from the evolving scenario. However, a large segment of the population, particularly in the industrially backward regions/rural areas generally lags behind in taking advantage of these opportunities. Therefore, there is a need to provide skill development and entrepreneurship development training to such people in order to mainstream them in the ongoing process of economic growth. Entrepreneurship development and training is, thus, one of the key elements for development of micro and small enterprises (MSEs), particularly, the first generation entrepreneurs. To undertake this task on regular basis, the Ministry has set up three national-level Entrepreneurship Development Institutes (EDIs).

Training Institute for entrepreneurs

These are the National Institute for Micro, Small and Medium Enterprises (NI-MSME), Hyderabad; the Indian Institute of Entrepreneurship (IIE), Guwahati and the National Institute for Entrepreneurship and Small Business Development (NIESBUD), Noida. Further, the Ministry has been implementing (in addition to the schemes of MSME-DO) an important scheme, namely, Scheme for Assistance for Strengthening of Training Infrastructure of Existing and New Entrepreneurship Development Institutes (EDIs).

Main objectives of Training Institutes

The main objectives of the scheme are (i) promoting entrepreneurship for creating selfemployment through enterprise creation; and for economic development. (ii) facilitating creation of training infrastructure; and (iii) supporting research on entrepreneurship related issues. Further, in order to improve the success rate of the EDP trainees in the establishment of new enterprises, the Ministry has recently launched a new scheme, namely, Rajiv Gandhi UdyamiMitraYojana (AScheme for Promotion and Handholding of Micro

and Small Enterprises). The main objective of this scheme is to provide handholding support to first generation entrepreneurs, through designated lead agencies i.e. UdyamiMitras. Under this scheme, the UdyamiMitras would provide guidance and assistance to the potential entrepreneurs registered with them, in preparation of project report, arranging finance, selection of technology, marketing tie-ups with buyers, installation of plant and machinery as well as obtaining various approvals, clearances and NOCs etc. For providing this handholding assistance to the new entrepreneurs, the UdyamiMitras shall be paid handholding charges under the scheme.

SCHEME FOR ASSISTANCE FOR STRENGTHENING OF TRAINING INFRASTRUCTURE OFEXISTINGAND NEW ENTREPRENEURSHIP DEVELOPMENT INSTITUTES (EDIs) The scheme envisages providing financial assistance to State-level existing/proposed institutions meant for supporting entrepreneurship development and self-employment activities. Under this scheme, grant is given for setting up of new entrepreneurship development institutions (EDIs) and also for up-gradation and modernisation of existing EDIs in the country. Under the scheme, a matching grant of 50 per cent, subject to a ceiling of Rs.100 lakh, is provided for building, equipment, training aids etc., the balance being contributed by the State/Union Territory Governments and other agencies. The financial assistance provided under this scheme is only catalytic and supportive to the contribution and efforts of State/Union Territory Governments and other agencies. Under no circumstances grant funds provided under the scheme can be used to meet the recurring expenditure of the institute. The institutions/organisations seeking assistance under this scheme should be registered as not-for-profit organisation with entrepreneurship development as its main objective, should possess a clear title of the land required for setting up of the proposed/existing institution, have a separate bank account in a scheduled bank in which all receipts/funds received by the institute should be credited and payments made on the basis of authorisation by the Governing Council of the institute. All the proposals under this scheme are required to be recommended by and routed through the concerned State/UT Government. NATIONAL INSTITUTE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (NIMSME), HYDERABAD NI-MSME, formerly known as National Institute of Small Industry Extension Training (NISIET), was set up in 1960 at New Delhi as a Department of Central Government under the Ministry of Commerce and Industry and was initially known as Central Industrial Extension Training Institute (CIETI). Subsequently, in 1962, it was shifted to Hyderabad and converted into an autonomous society. In 1984, the Institute was renamed as National Institute of Small Industry Extension Training (NISIET). After enactment of the MSMED Act, 2006, the Institute has been renamed as National Institute for Micro, Small and Medium Enterprises (NI-MSME), weft. 11th April 2007. The Institute has 91 Annual Report 2007-2008.

Generation of Services
Generation of services is very important inthe economic development of any country. SMEs plays an integral role in generation of Services. When there is an excess of services opportunities, Then economic development increases. An entrepreneurship plays an important role in economic development by generating service.

Entrepreneurs provide immediate large-scale employment to the unemployed which is a chronic problem of underdeveloped nations. With the setting up.of more and more units by entrepreneurs, both on small and large-scale numerous job opportunities are created for others. As time passes, these enterprises grow, providing direct and indirect employment opportunities to many more. In this way, entrepreneurs play an effective role in reducing the problem of unemployment in the country which in turn clears the path towards economic development of the nation

Given the fact that employment is the primary means provided by society for individuals to achieve and maintain economic security under current economic systems, societies are necessarily obligated to ensure that the system provides opportunities for every citizen to obtain gainful employment. Every nation has an obligation to guarantee access to gainful employment to all its citizens. Employment should be made a constitutional right. This does not mean that government should or could employ every job seeker, any more than it means the government should itself grow all the food needed to ensure food security for its population. Rather it means government has an obligation to formulate and modify its policies to make the system meet this objective. The extent to which the political-social-economic system is able to harness the available resources to meet human needs. The level of employment generated is not fixed according to any universal laws of economics. It depends on the implicit values and explicit policies on which the system is based. Changing those values and policies changes the availability of employment. There is ample scope for increasing employment opportunities in every country through a judicious application of policies. The conception that technological advancement inevitably destroys more jobs than it creates is not supported by the facts. There is no direct relationship between technological development and unemployment. Therefore, it is not true that rising levels of unemployment will be an inevitable aspect of the future society. In spite of the unprecedented adoption of new technologies during this century, which is one of the most technologically advanced nations in the world, has quadrupled the number of people employed since 1900 and has a higher percentage of its population employed today than at any time in the past 100 years. It is true that introduction of new technologies can eliminate jobs in specific fields of activity. It is also true that it can create many more jobs in other fields related to scientific and industrial research, education, equipment manufacture and repair. The higher paid jobs generated by technological development also increase purchasing power and demand for goods and services generating a multiplier effect that creates jobs in unrelated sectors of the economy. Current problems of youth unemployment in and many developing countries are a result of a complex mix of factors which can respond to effective policy initiatives.

a. The impact of labor market rigidity on unemployment levels in France and Germany has been well documented. Recently France has reported progress in loosing up labor markets. b. The population explosion that has peaked in most countries has created a larger wave of new entrants to the labor force that will gradually decline in the coming years. c. The sudden influx of large numbers of women into the labor force is a one time increase which has raised unemployment levels in some countries at the same time that overall employment rates have been rising.