Unit 5
Role of Entrepreneur
Role of Entrepreneur
Entrepreneurs play a vital role in economic growth of a country. Economic growth is a process by which the per capita income and total income of a country increases during a given period. Entrepreneurs serve as the catalysts in the process of rapid industrialisation and economic growth. In the process of economic growth of a country, the entrepreneur plays a motivator role. The process of economic growth cannot proceed onwards without the active support of the entrepreneur. It is the entrepreneur who collects the natural, economic, human and technical resources of a county and exploits them in the economic growth of a country. An entrepreneur is more a true leader of economic progress. He is by nature a visionary. He has innovative attitude. He loves risk-taking behaviour. He contributes to economic development in many ways, viz., capital formation, technological breakthrough, innovating skill, market expansion and organization of productive resources. He scents new market opportunities and takes the creative decisions to exploit them.
ROLE OF AN ENTREPRENEUR IN ECONOMIC DEVELOPMENT
One of the most important and basic role of an entrepreneur is to innovate. India would not have been discovered to western world if Vasco da Gama would not have sailed to India. The natural resources of Africa would not have been exploited if Britishers, French and Portuguese would not have ventured there. Most of discoveries would not have been translated and implemented if entrepreneurs were not willing to establish units for setting up industries. The development of railways, telecommunications, agriculture and industry has been possible due to innovations. Entrepreneurship essentially means doing things that are not generally done in ordinary course of business. An entrepreneur discovers and develops new ideas, new product, new methods of production, opening new markets, new sources of supply of raw-material, new type of industry, new enterprises, and new methods of solving business problems, new organisations, new combinations, and new opportunities. Innovation is the process of putting new ideas into action. The higher the rate of innovation, the higher will be the rate of economic growth. He is a catalyst of chance. According to W.T. Esterbook, “Entrepreneur is an innovating giant who encourages production of new products in the industry, new techniques of production, new machinery, use of new raw- material, use of new technology and establishment of new industries.” According to Edmunds Bark, “Entrepreneur, in the true sense, is a greedy for new things.” According to Peter F. Drucker,“Innovator is always in search of changes and exploits it as and when the opportunity arises. “Innovation is the creative endeavour that creates wealth. Entrepreneurs develop new ideas and, from their ideas, establish new enterprises that add value to society. In fact, entrepreneurs create wealth by creating something new or different or by searching for new opportunities as they arise to inspire new ventures. Indian entrepreneurs have set up those industries which had opportunity. There has been fast growth of food processing, beverages, petroleum, rubber, plastics, fertilizers, caustic soda, steel, etc. Many sophisticated industries have also been set up but most of knowledge based industries have not been innovated by Indian entrepreneurs because of limited interest in R & D; they have been based largely on with foreign technical and financial collaborations.
Role of an entrepreneur in economic growth as an innovator
The role of entrepreneurs as innovators is:
1. To create novelty in society:
The basic function of an entrepreneur is to create something new. He develops new products, elicits product diversification, and carries out business innovation through research and research.
2. Production of goods and services:
As an entrepreneur is also an innovator, he not only invents new things in his business activities, but also produces products and services that meet the needs of society. By recognizing different economic and social situations, he recognizes changes in economic and social life and takes the necessary initiations in a changing atmosphere. As a result, the circle of economic development is consistently moving.
3. To use national resources for production activities:
As an innovator, entrepreneurs make important contributions to the country's economic development by establishing new industries for production activities to meet the country's social and economic needs, creating jobs and using the country's resources.
4. Organize and adjust production resources:
As an innovator, entrepreneurs organize and coordinate production resources to maximize productivity at the lowest cost. Entrepreneurs also contribute to improving national productivity through efficient use of management capabilities and unused resources.
5. Foundation of industrial development:
Innovative entrepreneurs have the resources of the enterprise, the human capacity, and the quality of the reader to develop the generation of new ideas. Creativity creates new ideas, but due to lack of leadership, they are not the basis for industrial progress. Entrepreneurs can build an enterprising organization only through leadership, management, and creativity.
6. Organizational expansion:
Entrepreneurs pay a lot of money for research and research to promote innovation. As a result, scientific and business ideas are encouraged among people and their technical know-how is improved. Innovation is the result of such research activities and creative ideas. It will also be easier to adopt new production technologies instead of outdated technologies, and new product production and diversification will be introduced to expand small organizations.
7. Results of business activities:
In small businesses, responsibility, innovation, and risk lie in one person. However, in large domestic and international businesses, the total risk is borne by a group of individuals, not individuals. Therefore, business activities are accomplished by groups of individuals by organizing in the form of establishments such as companies, partnerships or co-operatives.
8. Consumption of new products and services to society:
Since entrepreneurs are creators and innovators, we introduce new products, new ideas, new markets, and new production technologies to society, improve living standards, and carry out research and development activities. As a result of all this, society has the opportunity to consume a range of new products and services, resulting in a significant increase in the standard of living of society.
9. National economic prosperity:
Innovative entrepreneurs launch new businesses by removing the hurdles and turmoil that arise in ventures. Besides, they also not only accept challenges and improve their own performance by introducing innovation. They also contribute to the overall prosperity of the country. Innovator entrepreneurs are very important in the progress of the country's industry.
Generation of employment opportunities
An entrepreneur generates employment not only for himself and members of his family but also for others who work with him. However, the number will depend upon the size and requirement of the enterprise concerned. Indirectly, by setting up large, medium and small scale sized business units they offer jobs to millions. For example, if one hundred people become entrepreneurs, they not only create a hundred jobs for themselves but also provide employment to an army of unemployed youth. As the time passes, these entrepreneurs grow providing direct and indirect employment. Thus, entrepreneurship is the best way to fight the evil of unemployment and generate employment opportunities in the country. National Alliances of Young Entrepreneur (NAYE) is rendering assistance to young entrepreneur in collaboration with public sector banks in the country. It helps in identifying potential projects, conducting project feasibility report and providing financial assistance and other logistic support to the young entrepreneurs.
Thus, the role of entrepreneur and its significance in generation of employment opportunities can be depicted under the following heads.
1) Establishing tiny, micro and small scale enterprises:
Role of entrepreneur in establishment the above types of enterprises are perceived as a powerful medium to address several socio-economic issues and the chief among them is generation of employment opportunities for millions. In a developing economy like India, where population pressure is quite high and job employment is limited, the role of entrepreneur is very much significant. Entrepreneurial development gives rise to economic independence through self-employment. Creation of tiny, micro and small enterprises by the entrepreneurs can lead to creation of both self- employment and wage- employment opportunities, thereby solving the problem of unemployment in the economy.
2) Giving emphasis upon village and cottage industries:
Upliftment of economically backward sections of the society can be possible if self- employment opportunities can be provided at the grass root level. To enable these people in backward regions of the state to set up village and cottage industries, government has implemented several antipoverty programmes like PMRY, TRYSEM, SGSY, REGP etc, and the importance of entrepreneurs in cottage and village industries sector has been clearly acknowledged by Mahatma Gandhi by his policy priorities in village upliftment including khadi and village industries in his famous constructive programme in 1922. Prior to independence, cottage industries and handicraft production located in rural areas had occupied a distinct place in Indian economy because of their high potential in employment generation and income creation especially in rural and backward areas. As such, entrepreneur can play a significant role in setting up and reviving the cottage and village industries, thereby creating employment opportunities to a large number of people living in rural and backward pockets of the country.
3) Utilizing the surplus labour force in industrial activities:
India is a primary producing country. This characteristics feature is further accentuated by seasonality feature of the agriculture. Therefore, for a large part of the year, people remain, more unemployed. Disguised unemployment is a chronic phenomenon in agriculture where in more people work in a field than actually required. So the surplus labour force is transferred and utilized by the entrepreneur in non-farm sector activities like small tiny, cottage and village industries which are labour intensive in nature.
Complimenting and supplementing economic growth
In recent decades, the role of an entrepreneur has been to supplement and accelerate the pace of growth and economic development in both the developed and developing countries When an entrepreneur sets up an industrial or service unit it helps in economic growth. Similarly, when economy grows it creates opportunities for further growth. Thus, every economic growth has a multiplier affect; one complements the other and one supplements the other. When an entrepreneur establishes a bank it complements other economic activities as it helps further growth. When any engineering and electronic unit is set up it requires components from large number of manufacturers. In most engineering, electronic and electrical industries like T. V., refrigerators, computer growth of one large unit gives birth to a number of ancillary units. This is true not only for engineering and electronic industry but also for steel, textiles, chemicals, food processing and so on. Along with complementary development there is also supplementary development. When a spinning mill is set up it leads to development of thread units and cloth weaving units. When a computer hardware industry is developed it leads to the growth of software industry. The development of software industry led to its exports from India in a big way. Thus, one leads to growth of another activity.
Bringing about social stability
Economic electricity denotes the electricity and wealth owned with the aid of using an individual. Economic electricity is the herbal end result of the commercial enterprise sports. Establishment of huge organizations ends in attention of monetary electricity in some palms withinside the society. Such attention has its personal evils withinside the shape of monopolies and monopolistic exploitation of the customers and the society as a entire. Hence growing a huge quantity of “small marketers” facilitates in even distribution of monetary electricity in a much broader range, in the long run bringing approximately social balance. Entrepreneurs deliver such balance additionally with the aid of using producing self-employment and facilitating improvement of rural and backward regions. Generally, entrepreneurship is taken to be synonymous with small scale organizations. Entrepreneurs have a exact social position and duty in the direction of the society. They should act in approaches that beautify the community’s well-being. Socially accountable behaviour of an entrepreneur now no longer best facilitates the customers and corporation however it additionally guarantees social balance and order.
Two kinds of human beings stay in society. The first class is of such people who perform advantageous and positive sports and the second one class is of unfavourable people. The first class human beings do something notably visible. They aspire now no longer best for his or her personal happiness however additionally want to look satisfied others and prosperous. The 2d sort of man or woman consists of out unfavourable sports in society. They create a disturbance, instigate human beings towards every different and turn out to be Furious on one pretext or the different, inflicting awful consequences for society.
The entrepreneur constantly dreams the protection of social balance with properly results.
For that, an entrepreneur fulfils the subsequent roles:
1. Establishing Self Sufficient Society:
The self-enough society can be installed with the aid of using the productiveness revolution in regions of manufacturing withinside the usa. For that, the entrepreneur will increase the manufacturing withinside the commercial enterprise organizations, satisfy the necessities of the neighborhood community, inspire Savings and capital formation, make a contribution in the direction of export merchandising and import substitution, etc. So, the dream of the established order of a self-enough society receives materialized
2. Establishing Ethical Values of Society:
The entrepreneur establishes the moral values for the society to make certain social balance. For that, he stresses retaining ethical values, ideals, and requirements withinside the behavior of people related to numerous commercial enterprise sports. The entrepreneur is part of the entire cost gadget of society.
3. Contribution to Social Development:
Entrepreneurs are growing withinside the Society and Society is evolved with the aid of using marketers. So, he now no longer best works for the improvement of the neighbourhood society however a society of the entire world. He makes the quality viable usage of bodily and human resources, with the maximum economy, presenting employment to neighbourhood human beings and additionally pleasurable his social obligations in the direction of numerous agencies of society.
4. Changes in Social Framework:
The marketers deliver out adjustments withinside the social framework thru progressive sports. They lead society in the direction of development with the aid of using the creation of latest merchandise, new markets, new techniques, new sources, and the established order of latest industries.
5. End of Evils:
The empty thoughts is the devil’s workshop. A ravenous man or woman can do any awful work, like, theft, dacoity, loot, murder, abduction, etc. By the established order of latest industries and enlargement of the present industries and making the manufacturing of latest merchandise, the marketers may also offer employment to such people and can divert their interest in the direction of creativity. It will boost the usual of residing of such human beings, a good way to be useful in doing away with numerous social evils. Employment is a direction to the advent of ethical values in society.
6. Less Economic Problems:
Society nevertheless prevails many social evils current withinside the massive cities. Like – elegance conflicts, polluted environment, slum regions, and social crimes, etc. These can be decreased with the aid of using the established order of numerous commercial enterprise undertakings with the aid of using the marketers. Besides, social evils like dowry and intoxication withinside the villages can also be curbed with the aid of using the established order of organizations and improvement of entrepreneurship inclinations withinside the villages and the eye of human beings may be diverted in the direction of financial savings and capital formation, etc.
7. Increase in Employment Opportunities:
The marketers growth the possibilities for employment. They assist in growing employment possibilities thru the established order of latest organizations and increasing the present establishments.
8. Removal of Poverty
The marketers offer most possibilities for employment to unemployed people, each at once and circuitously thru the improvement of latest merchandise and enlargement of latest organizations and the markets. As an impact of these kinds of poverty receives decreased withinside the usa. The marketers expand the direction of monetary development, thru which the usa receives rid of the vicious circle of poverty.
9. High Standards of Living
The Entrepreneurs have given materialism in society thru new techniques, new merchandise, and inventions. As an end result, the residing requirements of the human beings may be upgraded in society. It has contributed to a higher high-satisfactory of life.
10. Social Changes
Creative adjustments are being ordinary in society constantly. The entrepreneur is an innovative agent of social change. The conventional superstitions and misbelieves come to stop and social balance is installed.
Balanced regional development of industries
Industrial improvement has a bent to set up and expand industries, large or small, in metropolitan towns like Delhi, Mumbai and Chennai and in large towns. This brings to unbalanced local improvement of industries. In this context additionally, marketers are required to play an essential position in balanced local improvement of dunes. They installation industries specially in backward regions to avail the numerous concessions and subsidies presented via way of means of the Central and the State Governments. The Government of India and the State Governments also are looking to disperse the industries via way of means of organising commercial estates and growing infrastructural centers in backward regions.
An entrepreneur is someone who perceives for a brand new products or services and additionally unearths out monetary reassets for organising the commercial enterprise for manufacturing of the product and service. The marketers know, the way to avail the possibilities, and to set up any possible enterprise in any possible area. So, Entrepreneurs in Balanced Regional Development of Industries, performs a totally large position.
The position of marketers withinside the balanced improvement of the industries can be defined as follows:
1. Knowledge of Market Conditions:
An entrepreneur has complete information approximately the markets, like – in which is the coolest marketplace for a specific product, in which unique product and offerings are to be produced, what is going to be the value of manufacturing for a product at that vicinity, to what quantity the labour and capital can be to be had withinside the area, what's the in all likelihood call for for the commodity, what ought to be the fee of the commodity, etc. Extend and sort of opposition and the measures to win the opposition, etc. Entrepreneurs set up industries in the ones Areas, in which maximum of the elements are favourable to him. As a result, the balanced improvement of industries emerge as viable
2. Advantages of Government Policies and Facilities:
The authorities additionally dedicated for balanced local improvement of industries. To reap the goal, numerous styles of regulations had been formulated. Governments have additionally furnished numerous styles of centers allotment of land at concessional costs, provision of primary infrastructural centers on the allocated vicinity, clean availability of numerous assets, finance centers at affordable costs of interest, exemptions from taxes, the delivery of current strategies and equipment on instalment, exact centers for marketing, etc. The entrepreneur can also additionally come ahead to avail those centers for the status quo of recent commercial gadgets and growth of the prevailing gadgets. So, the balanced improvement of the industries emerges as viable.
3. Utilization of Different Resources:
The nature has bestowed all international locations and regions with one or the opposite assets, freed from value, of course, in various degrees. Besides, financial and bodily assets also are to be had in all regions. The marketers use numerous assets withinside the manufacturing of numerous commodities and offerings, because the own entrepreneurial qualities. As a result, balanced local improvement of industries takes vicinity withinside the country.
4. Constructive Changes in Social Structure:
Several positive modifications have befell withinside the social structure, because of the position of the entrepreneur. The society has emerge as enterprise oriented, misbelieves have reduced, numerous out of date traditions have come to an end. As a result, the marketers do now no longer hesitate to endure dangers and organising industries in some distance flung regions.
5. Activeness in All Areas:
The efforts of the marketers motive unfold of activeness in all regions of existence. They offer possibilities for main unfastened existence to people, in addition to make the society self enough.
6. Evolution of Multiform:
Nature has numerous diversities, however uniformity in its numerous factors will also be observed. The marketers investigate those diversities and use of them for the prosperity of human being, numerous talents and qualities, like, intelligence, sharp memory, foresightedness, dedication, courage, information of numerous new strategies, cognizance in the direction of the possibilities, information of marketplace conditions, etc. As a result, uniform improvement of industries emerge as viable and local imbalances additionally may be reduced.
7. Establishing Self Sufficient Society:
The marketers have an essential position withinside the status quo of a self enough society, the cause being that they satisfy the necessities of the society and additionally growth the Exports
8. Help in Removing Regional Disparities:
The marketers have an essential position in putting off the geographical disparities withinside the economy. Entrepreneur can also additionally to be had numerous centers to set up industries in such regions, like, no enterprise districts. Besides, the authorities additionally draws non-public marketers for organising industries in backward regions. For that, land and capital furnished to them at concessional costs. Exemption in taxes and numerous styles of subsidies also are furnished for the status quo of industries withinside the backward regions. All those efforts are beneficial withinside the improvement of backward regions. Thus, in stability local improvement of industries, marketers are gambling a totally essential position.
Key takeaways:
- Entrepreneurs play a vital role in economic growth of a country.
- One of the most important and basic role of an entrepreneur is to innovate. India would not have been discovered to western world if Vasco da Gama would not have sailed to India.
- The basic function of an entrepreneur is to create something new.
- As an innovator, entrepreneurs make important contributions to the country's economic development by establishing new industries for production activities to meet the country's social and economic needs, creating jobs and using the country's resources.
- Entrepreneurs pay a lot of money for research and research to promote innovation.
- In small businesses, responsibility, innovation, and risk lie in one person.
- An entrepreneur generates employment not only for himself and members of his family but also for others who work with him.
- Role of entrepreneur in establishment the above types of enterprises are perceived as a powerful medium to address several socio-economic issues and the chief among them is generation of employment opportunities for millions.
- In recent decades, the role of an entrepreneur has been to supplement and accelerate the pace of growth and economic development in both the developed and developing countries when an entrepreneur sets up an industrial or service unit it helps in economic growth.
- Economic electricity denotes the electricity and wealth owned with the aid of using an individual.
- The first class is of such people who perform advantageous and positive sports and the second one class is of unfavourable people.
- The marketers deliver out adjustments withinside the social framework thru progressive sports.
- The marketers offer most possibilities for employment to unemployed people, each at once and circuitously thru the improvement of latest merchandise and enlargement of latest organizations and the markets.
- Industrial improvement has a bent to set up and expand industries, large or small, in metropolitan towns like Delhi, Mumbai and Chennai and in large towns.
- The authorities additionally dedicated for balanced local improvement of industries.
- The efforts of the marketers motive unfold of activeness in all regions of existence.
- The marketers have an essential position withinside the status quo of a self enough society, the cause being that they satisfy the necessities of the society and additionally growth the Exports
Export promotion
An entrepreneur performs a vital position in export merchandising and import substitution.
Export Promotion refers to that attempt that's completed through an entrepreneur for eliminating imbalance through growing export and reducing import. It can be described because the govt. Coverage designed to inspire the exporters to export extra items from the use than preceding or it refers to guidelines and measures which could end result into most growth withinside the exports.
Role of an entrepreneur in export merchandising are as follows:
1. Removing the Trade Imbalance:
The marketers play an important position in case of eliminating the exchange imbalances. More manufacturing is the proper manner of export merchandising. If an entrepreneur desires to sell the export, he can do with the extra manufacturing, standardization, brand, low manufacturing value. “More manufacturing with low manufacturing value with better popular quality.” By this manner, an entrepreneur allows in eliminating the exchange imbalance.
Under exchange stability handiest items are blanketed, offerings aren't a part of exchange. But in growing manufacturing, entrepreneur can promote surplus manufacturing to different country and alter the due amount.
2. Reduction in Import:
An entrepreneur performs a vital position in discount of import. He imported uncooked fabric, manpower, machinery, tools, device, knowledge and fished items from different countries at excessive value. In this example entrepreneur need to take advantage of herbal sources through the use of home man strength and decreased value of manufacturing. It could be decreased import in future.
3. Economic Development:
Economic independence is the image of monetary development. Entrepreneur can produce extra output and meet out the inner and outside demand, and earn overseas foreign money. To satisfy the respective reason each personal and public region need to beautify all infrastructure centers (energy, industry, transportation, conversation and Banking) that's useful in reaching the targets.
4. Increment in Foreign Currency Fund:
An entrepreneur performs a vital position in growing overseas foreign money fund. We get overseas foreign money from the export merchandising. If govt. Is selling the export coverage, in this example, entrepreneur acquire the overseas foreign money fund through generating extra and sound merchandise and offerings.
5. Introduction to Innovation:
An entrepreneur need to undertake innovation through introducing new aggregate of items. By adopting innovation marketers promotes new product, items and product trade and diversification of product in venture.
6. Advance Technology:
An entrepreneur need to undertake improve technology for standardization of product with the much less value of manufacturing. By this manner, entrepreneur receives progressed improve technology, through adopting superior plant, machinery, device etc.
7. Appreciation in Production and Productivity Level:
An entrepreneur can play an important position in appreciating manufacturing and productiveness stage. To meet this reason, entrepreneur set up venture in Export Oriented Unit or Export Processing Zones or unfastened Trade Zones (FTZ). Such devices can be engaged in manufacturing, software program development, horticulture, agriculture, aquaculture, animal husbandry etc.
EOU and EPZ are commercial property in which export orientated devices are taken numerous incentive. If funding is completed in four cases, govt. Offers facility like much less tax or no tax or rebate in tax 100% exemptions; and different centers.
i. Export Oriented Units (EOU)
Ii. Export Processing Zone (through Central Govt.)
Iii. Special Economic Zone (SEZ)
Iv. Trade Free Zone (TFZ)
Government presents the subsequent centers to above export orientated tasks:
i. Single window device for paper formalities
Ii. Raw fabric at inexpensive price.
Iii. Market and transportation facility
Iv. Plant & Machinery
v. Credit facility
Vi. Low price of hobby on loan
If there's a growth in manufacturing, employment and eliminating exchange imbalances, govt. Launches guidelines like EOU, EPZ and SEZ, then export merchandising may be completed.
8. Low Production Cost:
If entrepreneur take advantage of herbal and human useful resource efficiently, it's going to provide their go back in excessive manufacturing at low value rather than import at excessive price and excessive value of manufacturing.
9. Enhancing Foreign Competition Capacity:
If entrepreneur use the inner sources for manufacturing with sound quality, he can promote surplus out to different usa and make a task in the front of overseas country at worldwide stage through sound, inexpensive, long lasting and popular merchandise.
10. Increasing Export:
Entrepreneurs are required to play a vital position in export merchandising. Export merchandising reduces unfavourable stability of exchange (i.e., handiest items are blanketed and offerings which can be left out or all seen gadgets are blanketed). It additionally will increase precious overseas foreign money reserves.
For motivation and growing export merchandising, govt. Presents unique centers and incentive to an entrepreneur. Both Central Govt. And State Government are furnished involved facility and incentives withinside the area of export merchandising. There need to be growing range of antique and new marketers missing advantages of incentives, concessions and subsides. In this manner Govt. Has released few programmes which include EOU, EPZ, FTZ, SEZ.
EOU — Export Oriented Unit
EPZ — Export Promotion Zone
FTZ — Free Trade Zone
SEZ — Special Economic Zone
11. Introduction to Industrial Culture and Corporate Service:
An Export Processing Zone (EPZ), unfastened Trade Zones (FTZ), Special Economic Zone (SEZ) installed through Central and State Govt. Are commercial estates in which export orientated devices take numerous centers which include tax exemptions, responsibility drawback, no import duties, no quantitative restrictions.
There are a few vital centers furnished to devices in FTZ or EPZ:
i. Suitably evolved plant and buildings.
Ii. Single factor clearance of latest tasks inside 45-60 days.
Iii. No license wished for import of capital items etc.
Iv. Duty unfastened import of capital items and device.
v. Complete exemption from profits tax.
Vi. Assured strength supply.
Vii. Export finance at confessional price of hobby.
Viii. Market centers
Ix. Single window device for documentation formalities.
Export processing zones had been installed at the subsequent places:
i. Kandla unfastened Trade Zone
Ii. Santa Cruz Electronics Export Processing Zone.
Iii. Export Processing Zone at Chennai.
Iv. Export Processing Zone at Cochin.
v. Export Processing Zone at Noida (U.P.)
Vi. Export Processing Zone at Falta (W .B.)
Vii. Export Processing Zone at Vishakhapatnam (Andhra Pradesh).
Import substitution
Entrepreneur is the maximum essential issue withinside the monetary improvement of the USA. He performs a totally essential and catalytic position in activating the elements of manufacturing main to the general monetary improvement. The entrepreneur organizes and makes use of the different factors and units effective equipment in action. The availability of marketers, therefore, is the precondition of monetary growth.
According to Prof. Schumpeter, the deliver of entrepreneur relies upon at the price of income and social climate. It is income that induces the potential entrepreneur to get into the enterprise and begin new sports or increase the prevailing sports. Profit, therefore, is a issue which induces the entrepreneur to arrange and make use of the elements of manufacturing for improvement. Entrepreneurial behaviour has a position in making sure the extrade required through the improvement process. Entrepreneur brings innovation or technical know-a way to introduce new merchandise and new combos of manufacturing elements. Economic machine has a reservoir of unused technical innovations which may be early utilised through the marketers. According to Prof. Schumpeter, “It isn't any a part of his feature to locate or to create new possibilities. They are constantly present, abundantly amassed through all kinds of people.”
Entrepreneur additionally mobilizes capital supply to have a command over elements of manufacturing. Prof. Schumpeter rightly discovered that entrepreneur wishes credit score due to the fact credit score promotes business improvement which in flip supply new items. So, useful resource mobilisation efforts of entrepreneur additionally make sure the higher appropriate powerful utilisation of sources to be had withinside the USA which in addition celebrates the tempo of monetary improvement.
The position of marketers in import substitution may be assessed withinside the following ways:
1. Saving of Foreign Exchange:
Entrepreneurs also are generating items and offerings which may be used for the ones merchandise which might be being imported from overseas. By generating replacement merchandise and offerings, marketers attempt to store precious forex. At a later stage, patron will become routine of replacement merchandise.
2. Creation of Employment Opportunities:
When marketers produce the products and offerings withinside the USA which may be used alternatively of the imports, employment possibilities are generated withinside the USA and utilisation of capital additionally will become possible.
3. Increase in National Income:
Import substitution efforts additionally assist to store forex which in the end results in boom in country wide profits. Any boom in country wide profits improves the health of the society. It additionally permits the use to optimise using to be had sources withinside the use.
4. Self-Reliance:
Import substitution reduces the dependence on imports from overseas. Various entrepreneurial sports for growing manufacturing and offerings now no longer simplest reduces the dependence on imports from overseas countries, however additionally lessen the forex crisis. It additionally motivates different capacity marketers to get worried in those sports.
5. Accelerating the Pace of Industrialization:
Import substitution efforts boost up the tempo of industrialisation withinside the use. Entrepreneurs are normally endorsed through the incentives and subsidies to paintings for import substitution efforts. They make investments extra capital to amplify the dimensions of manufacturing. In this way, they are attempting to deliver first-rate items and offerings to the society and thereby limiting the imports and thus, saving the forex.
Role of entrepreneurs in forex earnings
The end result of export advertising and import substitution is observed withinside the growing fashion of forex incomes if an entrepreneur produce maximum amount of merchandise and offerings. It is an indication of export advertising and manufacturing of substituted items of imported items and offerings.
The Forex market profits (i.e. forex profits) had been gambling a prominent position in boom and improvement of any economic system.
The Forex market profits imply arrival or creation of overseas forex. For growing the overseas incomes the Government has released LPG coverage (Liberalization, Privatization and Globalization). Along with time to time business coverage is likewise added and amended. To make the economic system extra aggressive, growing manufacturing, productiveness and efficiency, an entrepreneur adopts ultra-contemporary-day method and technologies.
The number one item of latest business coverage is to create self belief withinside the Indians and overseas industrialists. The major impact of our new business coverage changed into the overseas forex reserves that reached on the document degree of one hundred twenty billion bucks on thirtieth June 2004.
Sources of the Forex market Earnings:
The major reassets of foreign exchange incomes in India are as follows:
1. Rapid growth in our exports.
2. Heavy remittance of overseas forex via way of means of NRI for funding motive.
3. Entry of overseas marketers in massive range in India with massive overseas capital and contemporary generation.
4. Arrival to overseas capital in India (i.e. overseas direct funding)
5. Profit from industries which might be installed via way of means of Indian marketers in overseas country.
6. Indian personnel who're concerned in non-public and Govt. Offerings in abroad
Effect on Economy of the Forex market Earning:
1. Balance of Payment.
2. Reduction import.
3. Increasing export.
4. Introduction to overseas generation.
5. Advance generation primarily based totally productiveness.
6. Rising fashion of manufacturing and productiveness.
7. Low fee of manufacturing and manage on rate degree.
8. Industrial Development.
9. Control on Monopolies Restrictive Trade Practices.
10. Increasing aggressive Tendency.
Augmenting and meeting local demands
Entrepreneurs play a significant role in economic development of a country. He promotes the prosperity of a nation by his innovation and dynamic leadership Skills. He creates wealth, opens up employment opportunities and fosters the other segments. According to Harbison, entrepreneurs are prime movers of innovation, growth and as such, entrepreneurship is a dynamic force.
Entrepreneurs also play a significant role in augmenting local demands and meeting them satisfactorily. Towards this entrepreneurs focus their attention to manufacture service through indigenous technology, skill, resources and experiences. Entrepreneurs produce a wide range of products required by consumers. They meet the demand of the consumers without creating a shortage for goods. Small entrepreneurs have met the demand of local markets by providing the quality, design, fashion and styles required by the domestic consumers at fair and competitive price nicely. The home market rarely feels the need of foreign products because of science efforts our entrepreneurs.
Key takeaways:
- An entrepreneur plays a vital role in export promotion and import substitution by establishing developing and expanding industries which can produce such goods which is easily used as import substitution.
- Forex earnings have been playing a prominent role in growth and development of an economy.
- The result of export promotion and import substitution is found in the increasing trend of foreign exchange earning if an entrepreneur produce maximum quantity of products and services.
- To meet the local demands entrepreneurs focus their attention to manufacture service through indigenous technology, skill, resources and experiences.
References:
- Dr. R.K Pathak, M.C Kalwar, Business Organisation and Entrepreneurship Development, Ashok Publication.
- Dr. S.S Khanka, Entrepreneurship, Entrepreneurship Development, S. Chand Publication.
- Vasant Desai, Appannaiah, Reddy, Gopalakrishna, Entrepreneurship Development, Himalaya Publishing House
- R.K Pathak, M.C Kalwar, Entrepreneurship, Ashok Publication
