The important role of entrepreneurship economic development

1. Entrepreneurship
Role in economic
Development
Created by Moses Shuuya

2. Learning Outcomes
Discuss the role of entrepreneurship in economic growth

3. Overview
1 Create employment
2
Economic Growth and
development
3
Balanced Regional
Development
4
Reduced Concentration of
Economic Power
5
Wealth Creation and
Distribution
6
Contribute to Gross
National Product

4. Contin..
7
Improvement in the
Standard of Living
8
Promotes Country's Export
Trade
9
Induces Backward and
Forward Linkages
10
Facilitates Overall
Development

5. Direct - self employment
indirect - Employment of others in multiple
units they create
Create employment

6. Promote capital formation by mobilizing the
idle savings of public
E.g Gwashamba Mall/Grove Mall
Economic Growth and
development

7. Remove regional disparities through setting up
of industries in less developed and backward
areas
Growth of Industry and business leads to a lot
of Public benefits i.e. roads
Create high competition in big cities
Balanced Regional
Development

8. This concentration of power in a few hands has
its own evils in the form of monopolies
A large number of entrepreneurs need to be
developed to deal with the issue
E.g Health Ministry tenders
Reduces Concentration of
Economic Power

9. Create wealth through the creation of goods
and services
In the process creating jobs that improve living
conditions
Wealth Creation and
Distribution

10. They explore and exploit opportunities,
encourage effective resource mobilization of
capital and skills
Use them to come up with new product and
services through new market growth;
Increasing gross national product as well as
per capita income of the people in a country
Contributes to gross
national product

11. New innovations change the way we live
They innovation reduce production costs,
making this cheaper
Radio used to be scares commodity,
cellphones etc.
Improvement in the
Standard of Living

12. Promote country's export-trade, which is an
important ingredient of economic
development
Promote import substitution and export
promotion to ensure economic independence
and development.
E.g Russia
Promotes Country's
Export Trade

13. By creating industries or new value chain
Backward linkages - direct towards suppliers
Forward linkages -directed towards customers
E. g farmer's backward and forward linkages
Induces Backward and
Forward Linkages

14. Entrepreneurs act as catalytic agent for change
which results in chain reaction
One unit (business) will generate demand for
various types of units required
They also invest in community projects and provide
financial support to local charities
Facilitates Overall
Development