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business acumen in an effort to transform innovations into economic goods". This may result in new organizations or may be part of revitalizing mature organizations in response to a perceived opportunity. The most obvious form of entrepreneurship is that of starting new businesses (referred as Startup Company); however, in recent years, the term has been extended to include social and political forms of entrepreneurial activity. When entrepreneurship is describing activities within a firm or large organization it is referred to as intra-preneurship and may include corporate venturing, when large entities spin-off organizations.
According to Paul Reynolds, entrepreneurship scholar and creator of the Global Entrepreneurship Monitor, "by the time they reach their retirement years, half of all working men in the United States probably have a period of self-employment of one or more years; one in four may have engaged in selfemployment for six or more years. Participating in a new business creation is a common activity among U.S. workers over their course of their careers."
And in recent years has been documented by scholars
such as David Audretsch to be a major driver of economic growth in both the United States and Western Europe. Entrepreneurial activities are substantially different depending on the type of organization that is being started. Entrepreneurship ranges in scale from solo projects (even involving the entrepreneur only parttime) to major undertakings creating many job opportunities. Many "high value" entrepreneurial ventures seek venture capital or angel funding (seed money) in order to raise capital to build the business. Angel investors generally seek annualized returns of 20-30% and more, as well as extensive involvement in the business. Many kinds of organizations now exist to support would-be entrepreneurs, including specialized government agencies, business incubators, science parks, and some NGOs. In more recent times, the term entrepreneurship has been extended to include elements not related necessarily to business formation activity such as conceptualizations of entrepreneurship as a specific mindset (see also entrepreneurial mindset) resulting in entrepreneurial initiatives e.g. in the form of social entrepreneurship, political entrepreneurship, or knowledge entrepreneurship have emerged.
The contribution of entrepreneurs may be more in favourable opportunity conditions than in economies with relatively less favourable opportunity conditions. Entrpreneurship and Economic Development Entrepreneurship helps in the process of economic development in the following ways : 1) Employment Generation : Growing unemployment particularly educated unemployment is the problem of the nation. The economic history of the presently advanced countries like USA. identifies them and seizes them mainly for economic gains. Depending on the material resources. capital and technology. self employment as an entrepreneur and indirectly by starting many industrial units they offer jobs to millions. An action oriented enrepreneur is a highly calculative individual who is always willing to to undertake risks inorder to achieve their goals. The goods and services produced are for consumption within the country as well as to meet the demand of . Russia and japan supports the fact that economic development is the outcome for which entrepreneurship is an inevitable cause. 2) National Income : National Income consits of the goods and services produced in the country and imported.Entrepreneurship has an important role to play in the development of a country. He is the catalyst for social change and works for the common good. The role of entrepreneurs is not identical in the various economies. industry climate and responsiveness of the political system. The crucial and significant role played by the entrepreneurs in the economic development of advanced countries has made the people of developing and under developed countries consious of the importance of entrepreneuship for economic development. Need for Entrepreneurship Development Economic development essentially means a process of upward change whereby the real pr capita income of a country increases over a period of time . Thus entrepreneurship is the best way to fight the evil of unemployment. it varies from economy to economy.Role of entrepreneurship in economic dvelopment. The number and competense of entrepreneurs affect the economic growth of the country. Directly. It is now a widely accepted fact that active and enthusiastic entrepreneurs can only explore the potentials of the countries availability of resourses such as labour. It is one of the most important inputs in economic development. They looks for opportunities. Entrepreneur An enrepreneur can be regarded as a person who has the initiative skill and motivation to set up a business or enterprice of his own and who always look for high acheivements. The available employment opportunities can cater only 5 to 10 % of the unemployed. Entrepreneurs generate employment both directly and indirectly.
Entrepreneurship also helps in increasing productivity and capital formation of a nation. In short. When the industries are concentrated in selected cities. This concentration of power in a few hands has its own evils in the form of monopolies. 5) Better standards of living : Entrepreneurers play a vital role in achieving a higher rate of economic growth. A rapid development . In this way they can increase the standard of living of the people. in view of increasing competition in and around cities. The export demand also increases to meet the needs of growing imports due to various reasons. Thus entrepreneurship increases the national income. education. entertainment etc. 6) Creating innovation : An entrepreneur is a person who always look for changes. the development of the entrepreneurship is inevitable in the economic development of the country. He always try to introduce newer and newer technique of production of goods and services. The Role played by the entrepreneurship development can be expressed in the following words : " Economic development is the effect for which entrepreneurship is a cause " . Thus it helps in weakening the harmful effects of monopoly. health. Developing a large number of entrepreneurers helps in dispersing the economic power amongst the population. This helps in the development of backward regions. apart from combining the factors of production. development gets limited to these cities. Entrepreneurers are able to produce goods at lower cost and supply quality goods at lower price to the community according to their requirements. An entrepreneur brings economic development through innovation.exports. 4) Dispersal of economic power : Industrial development normally may lesd to concentration of economic powers in a few hands. When the new entrepreneurers grow at a faster rate.When the price of of the commodies decreases the consumers get the power to buy more goods for their satisfaction. he also introduces new ideas and new combination of factors. 3) Balanced Regional Development : The growth of Industry and business leads to a lot of Public benefits like transport facilities. they are forced to set up their enterprises in the smaller towns away from big cities. An increasing number of entrepreneurers are required to meet this increasing demand for goods and services. The domestic demand increases with increase in population and increase in standard of living.
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