Importance of Entrepreneur

Providing leadership in the industrial development

An entrepreneur is the combination of two skills-an ideal person and a manager. There must be persons who have vision, initiative and drive to utilise the resources. These qualities and abilities are combined only in entrepreneurs

Introducing innovations and changes

Entrepreneur always looks for changes. He not only combines the factors of production but also introduces new combinations of factors. Responds to changes and exploits it as an opportunity.

Increasing productivity
The entrepreneur allocates scarce resources & co-ordinates the various factors of production. He employs each factor in the right proportion. He uses best technical devices, division of labour etc. He tries to eliminate waste in production.

Providing employment
It generates employment and income. Entrepreneurship helps to reduce the unemployment which is the root of all socio economic problems.

Increasing the standard of living of the people

The entrepreneurs can contribute much to the growth of national income of a country. By exploiting natural resources, creating wealth and generating employment and income. A country is said to have achieved economic development only when its people enjoy a higher standard living.

Promoting balanced regional growth

Small scale enterprises is that they can be started with less financial resources. It also helps in reducing concentration of economic power in few hands. Economy grows along with entrepreneurship.

Increasing the export trade

Development of entrepreneurship helps to increase production. Hence market also grows and expands. Exports also go up.

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