Entrepreneurship and Economic Development

Vital role
Serves as catalyst in the process of industrialization and economic growth. Capital wealth Increase in per capita income Employment Generation Development of new products, services and new businesses Improvement in living standards

Economic Development
Backward Regional development Change in business structure and society Economic Independence/ Self Reliance Innovations.

 Reduces concentration of economic power Promotes capital formation by mobilizing the idle saving of the public. Stimulates equitable redistribution of wealth, income and political power. Promotes countrys export trade (an imp ingredient to economic development.)

Classification of Entrepreneurs
Innovative Entrepreneurs-developed countries Aggressive assemblage of information & analysing. Aggressive in experimentation and cleverly put attractive possibilities into practice. Sees opportunity for introducing a new technique, new product or a new market. Raise money to launch an enterprise, assemble the various factors and choose top executives and set the organisation going.

Imitative Entrepreneurs
Characterised by imitating the innovative entrepreneurs. They imitate the technology & techniques innovated by others. They are important in underdeveloped nations.

Adoptive or Imitative
Transform the system with the limited resources available. Face less risk and uncertainty. Organizer of factors of production than a creator. He can set in chain reaction and lead to cumulative progress.

Fabian Entrepreneurs
Very cautious and skeptical while practicing any change. Neither the will to introduce new changes nor the desire to adopt new methods. Shy and lazy Dont take risks, Follow predecessors. Determined by custom, religion, traditions and past practices. They imitate only in situations when it becomes absolutely necessary.

Drone Entrepreneurs
Are laggards and operate in a traditional way. Conventional Refuse to change and adopt new opportunities to make changes in production methods.