Role Of Entrepreneurship In Economic Development | immanenthub

Population is both our strength and weakness. Guess what if Entrepreneurship development mindset ping to 50% of population.

 

On one hand, population puts a heavy burden on our limited resources and on the other hand it provides abundant resources in the form of human capital.

 

Population will remain our asset only if we keep them happy and prosperous, providing them with opportunities and sustainable employment.

 

It is this aspect where India has been floundering for the past century.

 

In India, the government has been the largest generator of employment. To this date, the government is the largest employer.

 

But, over the past 60 years, the central and state governments together have been able to produce only 18.5 million jobs which means that the government has been able to fulfill only 15% of the total requirements.

 

In such situations, entrepreneurship has gained significance and prominence in recent years with a shift in focus from traditional agricultural and trade practices towards emerging knowledge-intensive sectors.

 

Therefore, these four levels of entrepreneurship found in India presently are Agricultural, Trading, Traditional and Knowledge Sectors.

 

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Importance of Entrepreneurs In India

 

Entrepreneurship development Timeline infographic

 

Entrepreneurs are considered to change agents in the process of industrial and economic development of an economy.

 

The premium mobile role that entrepreneurs play in promoting industrial and economic development of an economy is well appreciated across the countries.

 

In a sense, entrepreneurs are the spark plugs who transform the economic scene of an economy.

 

For example, Japan and the United States are developed because of their entrepreneurial development and Bangladesh and Nepal are underdeveloped because of lack of entrepreneurial development.

 

Within India itself, Gujarat and Punjab are developed because of their entrepreneurship development and Bihar and Odisha are backward or underdeveloped because they lack the same.

 

Thus, it can be said that with entrepreneur’s societies prosper, without them they are miserable.

 

In fact, the need for entrepreneurs in an economy can be imbued with the multiplicity of justifications as listed below:

 

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Functions Of Entrepreneur

 

#1 Entrepreneurs promote capital formation by mobilizing the idle saving of the people.

 

#2 They create immediate and large-scale employment by establishing MSMEs. Thus, they reduce the unemployment problem in the country, i.e., the root cause of all socio-economic problems.

 

#3 They promote balanced regional development by establishing small-scale enterprises in rural, remote and less developed regions.

 

#4 Similarly, they help in maintaining the economic power of the country.

 

#5 Also, they promote the equitable redistribution of wealth, income and even political power in the interest of the country.

 

#6 They incentivize effective resource mobilization of capital and skill which might otherwise remain unutilized and idle.

 

#7 By establishing industries, they induce backward and forward linkages that stimulate or incentivize the process of economic development in the country.

 

#8 Lastly, they promote a country’s export business which is an important ingredient for economic development.

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One way, perhaps the most effective way, of examining and appreciating the role of entrepreneurs in economic development in India is to see their contribution to the country’s GDP.

 

It is interesting to mention that entrepreneurs by establishing SMEs contribute to 35% of gross value of the output in the manufacturing sector.

 

About 80% of the total industrial employment and about 40% of total exports of the country.

 

Across-country (for e.g. Japan and Bangladesh) and cross-region (fore.g. Gujarat and Odisha) examinations confirm that with entrepreneurship as a career choice.

 

Both people and nations prosper in an easy and fast way and without it, both people and nations tend to lag behind in terms of development.

 

5 Stages Of Entrepreneurship and Its Development

 

entrepreneurship development infographic

 

72 years of independence has crossed. India is still in developing nations. To bridge the gap between a developing nation to a developed nation.

 

It is important for parents and elders of our country to provide the younger generation with adequate resources and information in the field of entrepreneurship so that they might be able to observe the behavior and recognize their interests and potential.

 

Following are the 5 stages where an individual needs guidance in order to establish themselves as good entrepreneurs who can contribute to the rapid growth of the country’s economy.

 

#1 Entrepreneurship development as a Young Child

 

This range of Soul includes ages between 5 to 12 years. This range of souls is the best way to achieve the right mindset.

 

Normally, particularly in Asian countries like India Pakistan Sri Lanka and the nearby subcontinent, there are major areas where people live to survive initially.

 

The governments should design a framework for the next 15 years on this issue.

 

Making money and earning money can’t decide the growth in the economy.

 

Teaching students the importance, basics and scope of entrepreneurship will help the nation as a whole.

 

#2 Entrepreneurship Development as an Amateur

 

Since students of class 11th and 12th are usually well around the age of being considered are young adults, we will include them in this section too.

 

According to my experience this is a career deciding phase for a student. In this stage, it should be clear to a Student that what he/she is going to do with respect to their careers.

 

They should be aware of what their goals are, what their ambitions are and how are they going to work in order to achieve their ambitions.

 

But, instead of exploring one’s strength and weaknesses, students, in this phase are constantly worried about scoring high marks. That is not a bad thing either, but they should be well aware of other career options besides academic related ones.

 

Hence, the knowledge of entrepreneurship is important so that these students might not think that there is no opportunity for them beyond academic-oriented jobs.

 

#3 Entrepreneurship Development as College Student

 

In Western countries, students aged 16-19 years or even more indulge themselves in activities and programs. That enhances their skills in whatever field they like.

 

Small projects and working under the supervision of an experienced person helps them gain knowledge and experience at a young age itself.

 

On the other side Asian students of the same age have less interest. Especially from countries like India, Pakistan, Bangladesh, and Sri Lanka etc don’t indulge themselves in such activities.

 

#4 Entrepreneurship Development as a Job Executive

 

The chain makes this part more relevant, but directly jumping into this sector makes no sense. In order to pursue entrepreneurship as a permanent career.

 

Directly opening a random business you know nothing about is not going to be beneficial at all.

 

So, it is important to gain knowledge, judge yourself if you’ll be able to do it or not. And only after your evaluation, step into this field.

 

#5 Entrepreneurship development as a Parent at Home

 

Parenting a child to achieve the entrepreneurship mindset takes around 5-10 years.

 

Financially stable people have less fear while investing in the dreams of their children. They can still survive peacefully even if the plan doesn’t successfully turn out to be profitable.

 

But financially unstable people have to evaluate the entire process thoroughly in order to invest in it. Because they cannot afford to lose a big amount of money.

 

So, it is important for each individual to rationally think about their respective economic backgrounds before stepping into this area.

 

Parents on the other hand, no matter what economic backgrounds they come from, should support their children. If they cannot help them financially, they must at least provide moral support because it is very important.

 

CONCLUSION:

Entrepreneurship is not an easy task. But with correct and early guidance, any individual can establish themselves as a successful entrepreneur. People shouldn’t think of it as a waste of time, rather, they should encourage anyone who actually wants to pursue a career in this area.