Entrepreneurship - Assignment Example

They strive to search for new way by their vision, creative and optimistic qualities. Entrepreneurs are those persons who perceive the prospect to innovate and accomplish the start up of new enterprise (Dallas Fed, n.d.). According to Schumpeter, the following things can be done by an entrepreneur as measures of innovation: Introduce new quality product that is unfamiliar Introduce unique production system that is not experienced so far Establishment of new market where a country has not entered yet Discover new supply source Foundation of new enterprise to create a monopoly position in the market (Mohanty, 2005). Role of Entrepreneur in Economy Entrepreneurs play vital role in economic progression. They help to deal with the common problems of unemployment. In the 20th century, the world had experienced a number of entrepreneurs. However, there are limited numbers of innovating entrepreneurs compared to imitating entrepreneurs. The imitating entrepreneurs help many underdeveloped countries to rise at a rapid speed due to global demand. Thus, an entrepreneur, essentially an innovating entrepreneur, has great importance to balance the global order and vitality of society (Mohanty, 2005). Entrepreneur and Economic Growth There are number of ways that entrepreneurs help in economic growth. Some of them are mentioned below: Capital Creation: Capital creation is the most vital aspect for economic development of a country. There is a need to create capital so that a country gathers huge reserves of machinery, equipment that can increase the production. Entrepreneurs can promote latest skills of human capital by their knowledge which can help to increase the productivity and thus financial growth. Raise the Per Capita Income: The economic growth is calculated by improvement of per capita income of people in a country. It is the entrepreneurs who tribute and increase the economic development by introducing new market or business opportunity in any country. Improve Living Style: By introducing different kinds of organisations, entrepreneurs improve the living standard of people. Their creative products help a common man to live and think in a different way. An entrepreneur invents new devices in a range of designs and models which makes people’s life easier. Economic Liberty: Entrepreneurial activity helps a country to accomplish economic liberty. It helps to reduce the dependability of other country. A technology introduced by an entrepreneur assists a country to produce in mass quantity and avoid using foreign technologies. Entrepreneurs sell to other countries the products and services and saves expensive foreign money for the country. Development of Infrastructure: Often an entrepreneur develops the country’s basic infrastructure such as road, overpass and industrial units which can aid economic development of a country. These establishments can attract investors and many foreign companies to operate business and invest huge money which can augment economic development. Backward and Onward Relationships: An entrepreneur instigates change in the country by backward and onward ways. Entrepreneurs introduce giant plant which creates several subsidiary industries and based on those industries other industries also grow side by side by utilising the raw material produced by the giant plant. Thus, an entrepreneur helps to increase the economic growth (Mohanty, 2005). Entrepreneurship and Competitiveness The entrepreneurial act ...Show more