Positive Aspects Of Entrepreneurship

Entrepreneurship creates new ventures and new jobs. It is the source of innovation. It creates new processes, products, markets and facilitates change. It puts economic development on a new course. Entrepreneurship is the driving force for economic development. It plays a critical role in economic development in the following ways:

Capital Formation

Capital is one of the vital sources for economic development. It is addition made to the stock of physical and human capital. Entrepreneurs stimulate investment interest in new ventures to mobilize idle savings of public.

Employment Creation

Generally, Entrepreneurs create employment opportunities for self and others. New business ventures are an important source of employment opportunities. Unemployment goes down and income level increases. Entrepreneurs provide employment to special focus groups such women and disadvantaged persons.

Increased productivity

Entrepreneurs make effective utilization of resources with minimal wastage. This leads to increase in production and productivity. The use of new technology also facilitates productivity increases. The rate of economic growth also increases. Potential resources get effectively exploited to provide goods and services to customers. Whatsoever, Entrepreneurs reinvest to expand existing venture or start new venture and try to maximize the value.

Balanced Development

Entrepreneurs start new ventures in various parts of the country. Incentives and facilities granted by the government provide attraction for starting business in backward regions of the country. This promotes balanced regional development as local resources get utilized. Entrepreneurs establish back ward linkages with the suppliers and forward linkages with the distributors. This also aids balanced development.

Export Promotion

Entrepreneurs innovate to develop new products for the needs of foreign markets. They tailor their products to the changing needs and preferences of foreign customers. Exports bring valuable foreign exchange. Exports are essential for economic development. Basically in countries like Nepal, Nepalese Entrepreneurs manufacturing woolen carpets tailor their design to satisfy the needs of various foreign markets. The design requirements of European and American markets may vary significantly. However, it also facilitates import-substitution.