Page 1
Entrepreneurial Role and Tasks
An entrepreneur is a person who takes risk of setting up his own venture for perceived
returns. He is a person who initiates the ideas, formulates a plan, organizes resources and
puts the plan into action to achieve his/her goals. Entrepreneurs have speci?c qualities,
they have special strengths which they draw upon for their adventure into business. To
start and succeed in your enterprise you are required to play di?erent roles at di?erent
stages of your enterprise.
When the organsiation moves from phase 1 to Phase 5 the journey from being a new
‘enterprise’ to becoming an established institution is a most tricky, delicate & challenging
role.
!e theory of organizational behavior distinguishes ?ve classic phases in thedevelopment
of an organization.
Phase 1: Enterprise / Creativity
Phase 2: Establishment / Professional Management
Phase 3: Delegation of Authority
Phase 4: Coordination between the various parts of the organization
Phase 5:Cooperation between the various parts of the organization.
Key roles of an entrepreneur
In your own business you have the vision of doing what you love to do every day with
passion. As you ramp up for success, there are key roles every business owner needs to
play the roles of …
1. !e Architect: Big-Picture Planning Entrepreneurs set the vision, and culture
around a big and daring goal. In doing so, they must have a general plan for where
they want to go, but they should not get hung up on developing the perfect plan.
!eir thinking should be like an architect in the concept and design development
phase rather than one in the detailed schematic phase. !e details of every initiative
should change with new customer and market feedback. !is is why the best venture
capitalists bet ?rst and foremost on the people and second — and it’s a distant second
— on the plan. !ere is no doubt that it’s easier to adjust a plan than it is to adjust
people. Plans at the start-up stage need a clear purpose and the top few priorities for
achieving it, but many other aspects, including product development, have to be
viewed as a ?rst direction at this point in time.
2. !e Storyteller: Researching and Selling Great entrepreneurs need to be constantly
selling the story of their vision, as well as researching how it should evolve. Whether
Page 2
Entrepreneurial Role and Tasks
An entrepreneur is a person who takes risk of setting up his own venture for perceived
returns. He is a person who initiates the ideas, formulates a plan, organizes resources and
puts the plan into action to achieve his/her goals. Entrepreneurs have speci?c qualities,
they have special strengths which they draw upon for their adventure into business. To
start and succeed in your enterprise you are required to play di?erent roles at di?erent
stages of your enterprise.
When the organsiation moves from phase 1 to Phase 5 the journey from being a new
‘enterprise’ to becoming an established institution is a most tricky, delicate & challenging
role.
!e theory of organizational behavior distinguishes ?ve classic phases in thedevelopment
of an organization.
Phase 1: Enterprise / Creativity
Phase 2: Establishment / Professional Management
Phase 3: Delegation of Authority
Phase 4: Coordination between the various parts of the organization
Phase 5:Cooperation between the various parts of the organization.
Key roles of an entrepreneur
In your own business you have the vision of doing what you love to do every day with
passion. As you ramp up for success, there are key roles every business owner needs to
play the roles of …
1. !e Architect: Big-Picture Planning Entrepreneurs set the vision, and culture
around a big and daring goal. In doing so, they must have a general plan for where
they want to go, but they should not get hung up on developing the perfect plan.
!eir thinking should be like an architect in the concept and design development
phase rather than one in the detailed schematic phase. !e details of every initiative
should change with new customer and market feedback. !is is why the best venture
capitalists bet ?rst and foremost on the people and second — and it’s a distant second
— on the plan. !ere is no doubt that it’s easier to adjust a plan than it is to adjust
people. Plans at the start-up stage need a clear purpose and the top few priorities for
achieving it, but many other aspects, including product development, have to be
viewed as a ?rst direction at this point in time.
2. !e Storyteller: Researching and Selling Great entrepreneurs need to be constantly
selling the story of their vision, as well as researching how it should evolve. Whether
raising funds, evangelizing the vision among employees, recruiting top new talent,
or selling the product itself. An entrepreneur needs to constantly pitch and act as the
enterprise’s chief storyteller.
3. !e Disciplinarian: Executing Excellent execution comes from adhering to a tight
set of controls and operating principles.
4. Chief Customer O?cer. Let’s face it – if you don’t have customers, you don’t have a
business. Here’s the challenge many business owners face: they confuse great customer
experience with great customer service. For example, they think smiling, saying thank
you and being nice will get them where they need to go which is no longer the
case. !e customer experience involves every touch point a customer has with your
business and isn’t about tactics, it’s about creating a true customer experience strategy
and then executing on it.
5. Chief Financial O?cer. !e part of running a business almost everyone would like
to get rid of – bookkeeping, accounting and tax. !e reality is these are some of the
most important functions in your business and your numbers actually tell a story – a
story of where you’ve been, how healthy your business is and what you should change
to be successful in the long term. If numbers is not your area, ?nd someone who loves
them (like an accountant or bookkeeper) and make sure you have regular, proactive,
ongoing communication with them & also learn the basics of ?nancial fundamentals
& analysis.
6. Chief People O?cer. You may not have employees yet but nonetheless, you’re now
in a leadership role. !e most important person you need to look after? You! It’s easy
as an entrepreneur to get caught up in everything that needs to get done and ?nd
yourself working all hours of the day and night. Doing something you love and are
passionate about makes time ?y by. Make sure you take time to look after you and
exercise, eat properly and get some rest and time for di?erent activities. You’ll need it
to keep fueling the passion!
7. Chief Executive O?cer. !e CEO of any company spends a great deal of time
looking at the big picture, planning for the future and creating a vision. At the same
time, when you’re running the show, it’s easy to get bogged down in the details. Make
sure you are spending a signi?cant amount of your time on the strategy – it’s what
which will lay the foundation for your future success.
8. Chief Innovation O?cer. So this may not be the most common title but it’s critical
to your long term success and sustainability. In order to stay relevant, competitive
and on the top of your game, you need to reinvent yourself – challenging the status
quo, innovating and looking for new o?erings that keep your customers coming
back. Time spent innovating truly is an investment, so don’t overlook how important
this role is.
Page 3
Entrepreneurial Role and Tasks
An entrepreneur is a person who takes risk of setting up his own venture for perceived
returns. He is a person who initiates the ideas, formulates a plan, organizes resources and
puts the plan into action to achieve his/her goals. Entrepreneurs have speci?c qualities,
they have special strengths which they draw upon for their adventure into business. To
start and succeed in your enterprise you are required to play di?erent roles at di?erent
stages of your enterprise.
When the organsiation moves from phase 1 to Phase 5 the journey from being a new
‘enterprise’ to becoming an established institution is a most tricky, delicate & challenging
role.
!e theory of organizational behavior distinguishes ?ve classic phases in thedevelopment
of an organization.
Phase 1: Enterprise / Creativity
Phase 2: Establishment / Professional Management
Phase 3: Delegation of Authority
Phase 4: Coordination between the various parts of the organization
Phase 5:Cooperation between the various parts of the organization.
Key roles of an entrepreneur
In your own business you have the vision of doing what you love to do every day with
passion. As you ramp up for success, there are key roles every business owner needs to
play the roles of …
1. !e Architect: Big-Picture Planning Entrepreneurs set the vision, and culture
around a big and daring goal. In doing so, they must have a general plan for where
they want to go, but they should not get hung up on developing the perfect plan.
!eir thinking should be like an architect in the concept and design development
phase rather than one in the detailed schematic phase. !e details of every initiative
should change with new customer and market feedback. !is is why the best venture
capitalists bet ?rst and foremost on the people and second — and it’s a distant second
— on the plan. !ere is no doubt that it’s easier to adjust a plan than it is to adjust
people. Plans at the start-up stage need a clear purpose and the top few priorities for
achieving it, but many other aspects, including product development, have to be
viewed as a ?rst direction at this point in time.
2. !e Storyteller: Researching and Selling Great entrepreneurs need to be constantly
selling the story of their vision, as well as researching how it should evolve. Whether
raising funds, evangelizing the vision among employees, recruiting top new talent,
or selling the product itself. An entrepreneur needs to constantly pitch and act as the
enterprise’s chief storyteller.
3. !e Disciplinarian: Executing Excellent execution comes from adhering to a tight
set of controls and operating principles.
4. Chief Customer O?cer. Let’s face it – if you don’t have customers, you don’t have a
business. Here’s the challenge many business owners face: they confuse great customer
experience with great customer service. For example, they think smiling, saying thank
you and being nice will get them where they need to go which is no longer the
case. !e customer experience involves every touch point a customer has with your
business and isn’t about tactics, it’s about creating a true customer experience strategy
and then executing on it.
5. Chief Financial O?cer. !e part of running a business almost everyone would like
to get rid of – bookkeeping, accounting and tax. !e reality is these are some of the
most important functions in your business and your numbers actually tell a story – a
story of where you’ve been, how healthy your business is and what you should change
to be successful in the long term. If numbers is not your area, ?nd someone who loves
them (like an accountant or bookkeeper) and make sure you have regular, proactive,
ongoing communication with them & also learn the basics of ?nancial fundamentals
& analysis.
6. Chief People O?cer. You may not have employees yet but nonetheless, you’re now
in a leadership role. !e most important person you need to look after? You! It’s easy
as an entrepreneur to get caught up in everything that needs to get done and ?nd
yourself working all hours of the day and night. Doing something you love and are
passionate about makes time ?y by. Make sure you take time to look after you and
exercise, eat properly and get some rest and time for di?erent activities. You’ll need it
to keep fueling the passion!
7. Chief Executive O?cer. !e CEO of any company spends a great deal of time
looking at the big picture, planning for the future and creating a vision. At the same
time, when you’re running the show, it’s easy to get bogged down in the details. Make
sure you are spending a signi?cant amount of your time on the strategy – it’s what
which will lay the foundation for your future success.
8. Chief Innovation O?cer. So this may not be the most common title but it’s critical
to your long term success and sustainability. In order to stay relevant, competitive
and on the top of your game, you need to reinvent yourself – challenging the status
quo, innovating and looking for new o?erings that keep your customers coming
back. Time spent innovating truly is an investment, so don’t overlook how important
this role is.
In the economic development role of an entrepreneur.
!e entrepreneur who is a business leader looks for ideas and puts them into e?ect
in fostering economic growth and development. Entrepreneurship is one of the most
important inputs in the economic development of a country. !e 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. !e major roles played by an entrepreneur in the
economic development of an economy are as follows.
1. Promotes Capital Formation:
Entrepreneurs promote capital formation by mobilizing the idle savings of
public. !ey employ their own as well as borrowed resources for setting up
their enterprises. Such type of entrepreneurial activities leads 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 e?ective 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. !e growth of industries and business
in these areas lead to a large number of public bene?ts 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 leads 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.
Page 4
Entrepreneurial Role and Tasks
An entrepreneur is a person who takes risk of setting up his own venture for perceived
returns. He is a person who initiates the ideas, formulates a plan, organizes resources and
puts the plan into action to achieve his/her goals. Entrepreneurs have speci?c qualities,
they have special strengths which they draw upon for their adventure into business. To
start and succeed in your enterprise you are required to play di?erent roles at di?erent
stages of your enterprise.
When the organsiation moves from phase 1 to Phase 5 the journey from being a new
‘enterprise’ to becoming an established institution is a most tricky, delicate & challenging
role.
!e theory of organizational behavior distinguishes ?ve classic phases in thedevelopment
of an organization.
Phase 1: Enterprise / Creativity
Phase 2: Establishment / Professional Management
Phase 3: Delegation of Authority
Phase 4: Coordination between the various parts of the organization
Phase 5:Cooperation between the various parts of the organization.
Key roles of an entrepreneur
In your own business you have the vision of doing what you love to do every day with
passion. As you ramp up for success, there are key roles every business owner needs to
play the roles of …
1. !e Architect: Big-Picture Planning Entrepreneurs set the vision, and culture
around a big and daring goal. In doing so, they must have a general plan for where
they want to go, but they should not get hung up on developing the perfect plan.
!eir thinking should be like an architect in the concept and design development
phase rather than one in the detailed schematic phase. !e details of every initiative
should change with new customer and market feedback. !is is why the best venture
capitalists bet ?rst and foremost on the people and second — and it’s a distant second
— on the plan. !ere is no doubt that it’s easier to adjust a plan than it is to adjust
people. Plans at the start-up stage need a clear purpose and the top few priorities for
achieving it, but many other aspects, including product development, have to be
viewed as a ?rst direction at this point in time.
2. !e Storyteller: Researching and Selling Great entrepreneurs need to be constantly
selling the story of their vision, as well as researching how it should evolve. Whether
raising funds, evangelizing the vision among employees, recruiting top new talent,
or selling the product itself. An entrepreneur needs to constantly pitch and act as the
enterprise’s chief storyteller.
3. !e Disciplinarian: Executing Excellent execution comes from adhering to a tight
set of controls and operating principles.
4. Chief Customer O?cer. Let’s face it – if you don’t have customers, you don’t have a
business. Here’s the challenge many business owners face: they confuse great customer
experience with great customer service. For example, they think smiling, saying thank
you and being nice will get them where they need to go which is no longer the
case. !e customer experience involves every touch point a customer has with your
business and isn’t about tactics, it’s about creating a true customer experience strategy
and then executing on it.
5. Chief Financial O?cer. !e part of running a business almost everyone would like
to get rid of – bookkeeping, accounting and tax. !e reality is these are some of the
most important functions in your business and your numbers actually tell a story – a
story of where you’ve been, how healthy your business is and what you should change
to be successful in the long term. If numbers is not your area, ?nd someone who loves
them (like an accountant or bookkeeper) and make sure you have regular, proactive,
ongoing communication with them & also learn the basics of ?nancial fundamentals
& analysis.
6. Chief People O?cer. You may not have employees yet but nonetheless, you’re now
in a leadership role. !e most important person you need to look after? You! It’s easy
as an entrepreneur to get caught up in everything that needs to get done and ?nd
yourself working all hours of the day and night. Doing something you love and are
passionate about makes time ?y by. Make sure you take time to look after you and
exercise, eat properly and get some rest and time for di?erent activities. You’ll need it
to keep fueling the passion!
7. Chief Executive O?cer. !e CEO of any company spends a great deal of time
looking at the big picture, planning for the future and creating a vision. At the same
time, when you’re running the show, it’s easy to get bogged down in the details. Make
sure you are spending a signi?cant amount of your time on the strategy – it’s what
which will lay the foundation for your future success.
8. Chief Innovation O?cer. So this may not be the most common title but it’s critical
to your long term success and sustainability. In order to stay relevant, competitive
and on the top of your game, you need to reinvent yourself – challenging the status
quo, innovating and looking for new o?erings that keep your customers coming
back. Time spent innovating truly is an investment, so don’t overlook how important
this role is.
In the economic development role of an entrepreneur.
!e entrepreneur who is a business leader looks for ideas and puts them into e?ect
in fostering economic growth and development. Entrepreneurship is one of the most
important inputs in the economic development of a country. !e 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. !e major roles played by an entrepreneur in the
economic development of an economy are as follows.
1. Promotes Capital Formation:
Entrepreneurs promote capital formation by mobilizing the idle savings of
public. !ey employ their own as well as borrowed resources for setting up
their enterprises. Such type of entrepreneurial activities leads 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 e?ective 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. !e growth of industries and business
in these areas lead to a large number of public bene?ts 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 leads 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 bene?t to larger
sections of the society. Entrepreneurial activities also generate more activities and
give a multiplier e?ect in the economy.
6. Increasing Gross National Product and Per Capita Income:
Entrepreneurs are always on the look out for opportunities. !ey explore and
exploit opportunities, encourage e?ective resource mobilization of capital and
skill, bring in new products and services and develop markets for growth of the
economy. In this way, they help in increasing gross domestic product as well as
per capita income of the people in a country. Increase in gross domestic product
and per capita income of the people in a country, is a sign of economic growth.
7. 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 on a large scale and that
too at a lower cost. !is enables the people to avail better quality goods at lower
prices which results in the improvement of their standard of living.
8. Promotes Country’s Export Trade:
Entrepreneurs help in promoting a country’s export-trade, which is an important
ingredient of economic development. !ey produce goods and services in large
scale for the purpose of earning large amount of foreign exchange from export
in order to combat the import dues requirements. !us import substitution and
export promotion ensure economic independence and development.
9. Induces Backward and Forward Linkages:
Entrepreneurs like to work in an environment of change and try to maximise
pro?ts 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.
10. Facilitates Overall Development:
Entrepreneurs act as catalytic agents for change, which leads to chain reaction.
Once an enterprise is established, the process of industrialization is set in motion.
Such unit will generate demand for various types of units required by it and there
will be many other units, which require the output of this unit. !is 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
Page 5
Entrepreneurial Role and Tasks
An entrepreneur is a person who takes risk of setting up his own venture for perceived
returns. He is a person who initiates the ideas, formulates a plan, organizes resources and
puts the plan into action to achieve his/her goals. Entrepreneurs have speci?c qualities,
they have special strengths which they draw upon for their adventure into business. To
start and succeed in your enterprise you are required to play di?erent roles at di?erent
stages of your enterprise.
When the organsiation moves from phase 1 to Phase 5 the journey from being a new
‘enterprise’ to becoming an established institution is a most tricky, delicate & challenging
role.
!e theory of organizational behavior distinguishes ?ve classic phases in thedevelopment
of an organization.
Phase 1: Enterprise / Creativity
Phase 2: Establishment / Professional Management
Phase 3: Delegation of Authority
Phase 4: Coordination between the various parts of the organization
Phase 5:Cooperation between the various parts of the organization.
Key roles of an entrepreneur
In your own business you have the vision of doing what you love to do every day with
passion. As you ramp up for success, there are key roles every business owner needs to
play the roles of …
1. !e Architect: Big-Picture Planning Entrepreneurs set the vision, and culture
around a big and daring goal. In doing so, they must have a general plan for where
they want to go, but they should not get hung up on developing the perfect plan.
!eir thinking should be like an architect in the concept and design development
phase rather than one in the detailed schematic phase. !e details of every initiative
should change with new customer and market feedback. !is is why the best venture
capitalists bet ?rst and foremost on the people and second — and it’s a distant second
— on the plan. !ere is no doubt that it’s easier to adjust a plan than it is to adjust
people. Plans at the start-up stage need a clear purpose and the top few priorities for
achieving it, but many other aspects, including product development, have to be
viewed as a ?rst direction at this point in time.
2. !e Storyteller: Researching and Selling Great entrepreneurs need to be constantly
selling the story of their vision, as well as researching how it should evolve. Whether
raising funds, evangelizing the vision among employees, recruiting top new talent,
or selling the product itself. An entrepreneur needs to constantly pitch and act as the
enterprise’s chief storyteller.
3. !e Disciplinarian: Executing Excellent execution comes from adhering to a tight
set of controls and operating principles.
4. Chief Customer O?cer. Let’s face it – if you don’t have customers, you don’t have a
business. Here’s the challenge many business owners face: they confuse great customer
experience with great customer service. For example, they think smiling, saying thank
you and being nice will get them where they need to go which is no longer the
case. !e customer experience involves every touch point a customer has with your
business and isn’t about tactics, it’s about creating a true customer experience strategy
and then executing on it.
5. Chief Financial O?cer. !e part of running a business almost everyone would like
to get rid of – bookkeeping, accounting and tax. !e reality is these are some of the
most important functions in your business and your numbers actually tell a story – a
story of where you’ve been, how healthy your business is and what you should change
to be successful in the long term. If numbers is not your area, ?nd someone who loves
them (like an accountant or bookkeeper) and make sure you have regular, proactive,
ongoing communication with them & also learn the basics of ?nancial fundamentals
& analysis.
6. Chief People O?cer. You may not have employees yet but nonetheless, you’re now
in a leadership role. !e most important person you need to look after? You! It’s easy
as an entrepreneur to get caught up in everything that needs to get done and ?nd
yourself working all hours of the day and night. Doing something you love and are
passionate about makes time ?y by. Make sure you take time to look after you and
exercise, eat properly and get some rest and time for di?erent activities. You’ll need it
to keep fueling the passion!
7. Chief Executive O?cer. !e CEO of any company spends a great deal of time
looking at the big picture, planning for the future and creating a vision. At the same
time, when you’re running the show, it’s easy to get bogged down in the details. Make
sure you are spending a signi?cant amount of your time on the strategy – it’s what
which will lay the foundation for your future success.
8. Chief Innovation O?cer. So this may not be the most common title but it’s critical
to your long term success and sustainability. In order to stay relevant, competitive
and on the top of your game, you need to reinvent yourself – challenging the status
quo, innovating and looking for new o?erings that keep your customers coming
back. Time spent innovating truly is an investment, so don’t overlook how important
this role is.
In the economic development role of an entrepreneur.
!e entrepreneur who is a business leader looks for ideas and puts them into e?ect
in fostering economic growth and development. Entrepreneurship is one of the most
important inputs in the economic development of a country. !e 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. !e major roles played by an entrepreneur in the
economic development of an economy are as follows.
1. Promotes Capital Formation:
Entrepreneurs promote capital formation by mobilizing the idle savings of
public. !ey employ their own as well as borrowed resources for setting up
their enterprises. Such type of entrepreneurial activities leads 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 e?ective 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. !e growth of industries and business
in these areas lead to a large number of public bene?ts 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 leads 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 bene?t to larger
sections of the society. Entrepreneurial activities also generate more activities and
give a multiplier e?ect in the economy.
6. Increasing Gross National Product and Per Capita Income:
Entrepreneurs are always on the look out for opportunities. !ey explore and
exploit opportunities, encourage e?ective resource mobilization of capital and
skill, bring in new products and services and develop markets for growth of the
economy. In this way, they help in increasing gross domestic product as well as
per capita income of the people in a country. Increase in gross domestic product
and per capita income of the people in a country, is a sign of economic growth.
7. 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 on a large scale and that
too at a lower cost. !is enables the people to avail better quality goods at lower
prices which results in the improvement of their standard of living.
8. Promotes Country’s Export Trade:
Entrepreneurs help in promoting a country’s export-trade, which is an important
ingredient of economic development. !ey produce goods and services in large
scale for the purpose of earning large amount of foreign exchange from export
in order to combat the import dues requirements. !us import substitution and
export promotion ensure economic independence and development.
9. Induces Backward and Forward Linkages:
Entrepreneurs like to work in an environment of change and try to maximise
pro?ts 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.
10. Facilitates Overall Development:
Entrepreneurs act as catalytic agents for change, which leads to chain reaction.
Once an enterprise is established, the process of industrialization is set in motion.
Such unit will generate demand for various types of units required by it and there
will be many other units, which require the output of this unit. !is 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.
!e ?rst step is knowing which role your talents match most closely.
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