This document discusses entrepreneurship and economic development. It defines economic growth as an increase in a nation's output over time, while economic development refers to progressive socioeconomic changes that ensure social justice. Growth alone is not sufficient; development must lead to equity, opportunities, and human enrichment. The document examines different views of entrepreneurs as economic agents who take risks and create new combinations. It explores how entrepreneurs drive growth by exploring opportunities, converting ideas into businesses, and combining factors of production to create new products and services. Their work generates employment, income, taxes, wealth, productivity, output, and exports. Entrepreneurship is creating value through recognizing opportunities and managing associated risks through innovative and creative means.

1. ENTREPRENEURSHIP
AND
ECONOMIC DEVELOPMENT
Dr. Dinesh Awasthi
Director
Entrepreneurship Development Institute of India
Ahmedabad

2. ECONOMIC GROWTH MEANS A PROCESS WHEREBY AN
ECONOMY’S NATIONAL PRODUCT INCREASES OVER TIME. IT
COULD ALSO REFER TO INCREASE OVER TIME IN A
COUNTRY’S REAL OUTPUT OF GOODS AND SERVICES
.
ECONOMIC DEVELOPMENT IMPLIES PROGRESSIVE
CHANGES IN THE SOCIO-ECONOMIC STRUCTURE OF A COUNTRY,
COMPOSITION OF OUTPUT AND SHIFT IN THE ALLOCATION OF
PRODUCTIVE RESOURCES SO AS TO ENSURE SOCIAL JUSTICE.
GROWTH WITHOUT DEVELOPMENT MAY MEAN A LITTLE.
ECONOMIC GROWTH IS ONLY A MEANS WHILE HUMAN
DEVELOPMENT IS THE END. THE GROWTH MUST LEAD TO EQUITY
JOB OPPORTUNITIES, ACCESS TO PRODUCTIVE ASSETS, SOCIAL
SPENDING, GENDER EQUALITY, ENRICHMENT OF HUMAN
RESOURCES, GOOD GOVERNANCE AND ACTIVE CIVIL SOCIETY.

3. ‘Entrepreneur is an economic agent who
unites all the means of production, provides
continuous management and bears risk”
JB Say
“The entrepreneur carries out new
combinations - he is an innovator.”
McClelland

4. SOURCES OF GROWTH:
1. Initially, natural resource base determined growth
and development
2. Capital and technology become the major
source of growth
3. Now human resources have come to the fore
as major determinants of economic growth

5. WHAT CAUSES ECONOMIC
GROWTH?
Economic growth is effect,
entrepreneur is the cause.
Entrepreneurs explore opportunities,
convert ideas into viable business
proposition and provide new products
and services to the society by bringing
together and combining various
factors of production. They change life
style of the people.

6. WHAT ENTREPRENEURS DO?
Employment & Income
Generation
ENTERPRISES
ENTREPRENEURS
Taxes/Govt.
Revenues
Poverty
Alleviation
Creation of
Wealth
Higher Productivity &
Innovations
Increasing Output
& Exports

7. ENTREPRENEURSHIP
Entrepreneurship is the attempt to
create value through recognition of
business opportunity, the
management of risk appropriate to
opportunity and through the
communicative and management
skills to mobilise human, financial
and material resources necessary
to bring a project to fruition
through innovation and creativity.

8. J A SCHUMPETER:
Key to technological progress was innovation by
entrepreneurs. Innovations in:
.Introduction of New Product
.Introduction of new process
.Opening up of New Markets
.New Sources of raw material supply
.New form of Organizations
The carrying out of new combinations, Schumpeter
called ENTERPRISE, and the individual whose function
it is to carry them out we call ENTREPRENEURS

9. ENTREPRENEUR
“It is not the critic who counts, nor the observer who watches
from a safe distance. Wealth is created only by doers in the
arena who are marred with dirt, dust, blood, and sweat. These
are producers who strike out on their own, who know high
highs and low lows, great devotions, and who overextend
themselves for worthwhile causes. Without exceptions, they fail
more than they succeed and appreciate this reality even before
venturing out on their own. But when these producers of
wealth fail, they at least fail with style and grace, and their gut
soon recognizes that failure is only a resting place, not a place
in which to spend a lifetime. Their places will never be with
those nameless souls who know neither victory nor defeat, who
receive weekly paychecks regardless of their week’s
performance, who are hired hands in the labour in someone
else’s garden. These doers are producers and no matter what
their lot is at any given moment, they will never take a place
beside the takers, for theirs is a unique place, alone, under the sun. They
are entrepreneurs!”
JOSEPH R
MANCUSO