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ROLE OF ENTREPRENEURS IN ECONOMIC DEVELOPMENT

Entrepreneurs are creative people and they launch new and innovative products and services in
their drive to earn profits. As Van Stel, A. J. (2005). suggests: creativity and independence of
entrepreneurs contribute to higher levels of economic activity Economic activity globally has
been stimulated by the constant innovation and change that has been brought on by the
entrepreneurs everywhere.
Who are entrepreneurs and how do they contribute towards the economic development? In our
opinion, the entrepreneur is a leader in business who identifies business ideas and implements
them and thus fosters the economic growth and prosperity. They not only look for opportunities
but identify them and capture them for their economic gains as Tiwari, A. (2007) says they
identify opportunities and capture opportunities mainly for economic gains Entrepreneurship is
deemed to be important for the economic growth of a country. The entrepreneurs trigger the
economic activities through their business decisions and play a key role in the development and
prosperity of a country. Entrepreneurs promote capital formation through the mobilization of idle
savings of the masses. They create employment opportunities and thus address the root cause of
the problem of underdevelopment in many countries. Entrepreneurs remove regional disparities
between developed and less developed areas by venturing into less developed areas of a country.
We believe that modern capitalism is characterized by innovation and change that is the essential
feature of entrepreneurs. Many top level multinational companies and transnational companies of
today were started by entrepreneurs of yester years which progressed to become multinational

and transnational corporations. As we notice de Groot, et al (2004) also say that entrepreneurship
emerged as an essential feature of modern capitalism. Entrepreneurs address a range of areas of
public interest like education, health, entertainment, tourism, etc. Through entrepreneurial
activity, an economy experiences greater harmony through reduction in the concentration of
economic power in fewer hands. Through entrepreneurial activity the growth of monopolies is
checked. Entrepreneurs also help in the creation and distribution of wealth as wide spread
entrepreneurship promotes an equitable distribution of wealth in favor of a larger portion of the
society. Entrepreneurs identify and exploit opportunities and put in place mechanisms for an
effective resource mobilization and utilization. In a bid to bring new products and services, they
develop markets in the economy. This way, they help increase the Gross National Product (GNP)
as well as Per Capita Income in the country which signal economic growth.
We believe that entrepreneurs help in the improvement of standard of living which is a key
feature of the economic development in a society. Entrepreneurs assert a key role in increasing
the standard of living of the people of a country by bringing in a wide variety of new and
innovative products and services within easy affordability of the people in a country and thus
enable people to experience a higher standard of living. We also believe that entrepreneurs
promote a country's export business which plays an important part in the economic development
of the country. They produce exportable goods and services and foreign exchange earned through
the exports of such goods and services ensures economic freedom and prosperity. Entrepreneurs
tend to work in an environment of change and innovation which promotes backward linkages
and forward linkages which foster economic growth and development in the country.

References:
Van Stel, A. J. (2005). Entrepreneurship and Economic Growth: Some Empirical
Studies: Thela Thesis. Retrieved from https://books.google.com.pk/books?
id=Y8L5o44C_xsC&pg=PA1&dq=role+of+entrepreneurs+in+economic+development&hl=en&s
a=X&ei=9msRVZbnDYLYavrEgbAH&ved=0CBoQ6AEwAA#v=onepage&q=role%20of
%20entrepreneurs%20in%20economic%20development&f=false
Tiwari, A. (2007). Entrepreneurship Development in India: Sarup & Sons. Retrieved from
https://books.google.com.pk/books?
id=AHvOqmDO9KoC&pg=PA1&dq=role+of+entrepreneurs+in+economic+development&hl=e
n&sa=X&ei=9msRVZbnDYLYavrEgbAH&ved=0CB8Q6AEwAQ#v=onepage&q=role%20of
%20entrepreneurs%20in%20economic%20development&f=false

de Groot, H. L. F., Nijkamp, P., & Stough, R. (2004). Entrepreneurship and Regional Economic
Development: A Spatial Perspective: Edward Elgar Publishing. Retrieved from
https://books.google.com.pk/books?
id=goCoq7c_C0wC&pg=PA46&dq=role+of+entrepreneurs+in+economic+development&hl=en
&sa=X&ei=9msRVZbnDYLYavrEgbAH&ved=0CCoQ6AEwAw#v=onepage&q=role%20of
%20entrepreneurs%20in%20economic%20development&f=false

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