Mobilization of Capital Entrepreneurs efforts to mobilize the capital results in motivating the investors to divert their ideal savings in the industrial enterprises. Investment of public saving in industrial sector helps the country to use financial resources for productive purposes. The growth rate of capital formation will be increased which is highly essential for rapid economic development of a country. It is in the sense that entrepreneurs grenade capital at a rapid rate and capital formation increases which is vital for the industrial development.
3/30/2017 BBA 306 2
Generation of Employment Entrepreneurs become self-employed and self- sufficient. They do not depend on the government jobs or private jobs and directly employ themselves by starting their own enterprises. In fact, they also privet jobs to many unemployed by setting up large and small scale industrial. Thus, entrepreneurs play an important role to reduce the unemployment problem in the country and pave the way for economic development 3/30/2017 BBA 306 3 Backward and Forward Linkages It is the entrepreneur who initiatives change and this to maximize his profits by innovations. Setting up of an enterprise in accordance with the changing technology has several backward and forward linkages. For example, the establishment of a textile unit generates several ancillary units and expands demand for cotton, chemicals, dyes, etc.
3/30/2017 BBA 306 4
Others Balanced regional development Improvement of per capita income Improvement of Standard of living Import substitution and export promotion
3/30/2017 BBA 306 5
Supplementing And Complementing Economic Growth Schumpeter postulates that the rate of economic progress of a country depends largely upon its rate of innovation, which in turn, depends upon the entrepreneurial talents. According to Schumpeter, technological development cannot alone bring about economic growth unless they are put to practical use by the entrepreneurs. Similarly, Peter Drucker has also emphasized that this is the age of entrepreneurial society. Economic development and growth of a country depends to a great extent upon effective entrepreneurship. In his opinion, 92 entrepreneur plays a crucial role for the creation of new small enterprises that energize the economic structure. Through constant creativity, new businessmen/entrepreneurs assure a strong economy and rising national income.
Thus, the role of entrepreneur is important, as it is not only
complements but also supplements the economic growth of the Country