The document discusses the major role of entrepreneurship in the economic development of India. It notes that entrepreneurs locate and exploit opportunities, converting idle resources into national income and wealth through goods and services. This promotes capital formation, creates large-scale employment, encourages balanced regional development, reduces concentration of economic power, stimulates wealth creation and distribution, and increases gross national product and per capita income - all of which are essential to a country's economic development.

1. HELLO EVERYONE
Raman dhiman
Commerce
classes
Stydyhub
Welcome to my
class

2. NOTES
Topic
briefly explain the major
role played by
entrepreneurship in
economic development of
India

3. NOTES
ENTREPRENEUR IN
ECONOMIC DEVELOPMENT
ECONOMIC DEVELOPMENT : INTRODUCTION
1.Economic development of any country depends upon its
entrepreneurs.
2. A country is bound to
make rapid progress where right type of entrepreneurs are
available in addequate number, who are
perceive and exploit the opportunities as and when arise, in
the best intoerests of the business.
3.An
entrepreneur is one who possesses drive and ability to bear
risk. He looks for ideas and puts them
into effect in fostering economic growth and development.
4.Entreprenerurship is one of the most
important inputs in the economic development of a country.
The entreproeneur acts as a trigger head
to give spark to economic activities by his entreneurial
decisions.
5. He plaays a pivotal role not only
in the development of industrial sector of a country but also
in the develpment of farm and service
sector
6.The major role of entrepreneurship is the promotion of
country's es, generating wealth at
all the levels in a society, improving social and community
conditions.

4. NOTES
☆▪︎Entrepreneurs locate
and exploit opportunities.
☆▪︎They convert the latent
and idle resources like land,
labour and capital into
national income and wealth
in the form of goods and
services.
☆▪︎They help increase Net
National Product and Per
Capita Income in the
country.
Role of entrepreneurship in
economic development

5. NOTES

6. NOTES
1. Promotes Capital Formation : Entrepreneurs
promote capital formation byplizing the
idle savings of public. They employ their own as well
as borrowed resourceng up
their enterprises. Such types of entrepreneurial
activities lead to value and creation
of wealth, which is very essential for the industrial
and economic development of the
country.
2. Creates Large Scale Employment Opportunities :
Entrepreneurs providede immediate large
scale employment to the unemployed which is a
chronic problem of usinderdeveloped
nations. With the setting up of more and more units
by entrepreneurs,both on small and
large scale, numerous job opportunities are created
for others. AAs time passes, these
enterprises grow, providing direct and indirect
employment opportunities to many more.
In this way, entrepreneurs play an effective role in
reducing the problerm of unemployment
in the country which in turn clears the path towards
economic develoopment of the nation.
Explanation

7. NOTES
3. Promotes Balanced Regional Development:
Entrepreneurs help toremove regional
disparities through setting up of industries in less
developed and backtward areas. The
growth of industries and business in these areas
lead to a large number ofpublic benefits
like road transport, health, education,
entertainment, etc. Setting upof more industries
leads to more development of backward regions
and thereby promotees balanced regional
development.
4. Reduces Concentration of Economic Power :
Economic poweris the natural outcome of
industrial and business activity. Industrial
development normally leadss to concentration of
economic power in the hands of a few individuals
which results in the growth of
monopolies. In order to redress this problem, a
large number of entrepreneurs need to be
developed, which will help reduce the
concentration of economicc power amongst the
population.

8. NOTES
5. Wealth Creation and Distribution : It
stimulates equitable redistribution of
wealth and income in the interest of the
country to more people and geographical
areas, thus giving benefit to larger sections
of the society. Entrepreneurial activities
also generate more activities and give a
multiplier effect in the economy,
6. Increasing Gross National Product and
Per Capita Income : Entrepreneurs are
always on the look out for opportunities.
They explore and exploit opportunities,
encourage effective resources
mobilisation of capital and skill, bring in
new products and services and develop
markets for growth of the economy. In this
way, they help increasing gross national
product as well as per capita income of the
people in a country, Increase in gross
national product and per capita income of
the people in a country, is a sign of
economic growth.

9. NOTES
7.Mobilization of Local Resources : Entrepreneurs help to
mobilize and utilize local resources like small savings
and talents of relatives and friends, which might
otherwise remain idle and unutilized. Thus they help in
effective utilization of resources.
8. Optimization of Capital : Entrepreneurs aim to get
quick return on investment. They act as a stabilizing
force by providing high output capital ratio as well as
high employment capital ratio.
9. Consumer Demands : Entrepreneurs produce a wide
range of products required by consumers. They meet the
demand of the consumers without creating a shortage of
goods.
10. Growth of Infrastructure : The development of
entrepreneurship requires the creation of infrastructural
facilities. The government helps in providing facilities
such as roads, railways and other means of transport,
general and technical education, power etc.
11. Development of Trade : Entrepreneurs play an
important role in the promotion of domestic trade and
foreign trade. They avail assistance from various
financial institutions in the form of cash credit, trade
credit, overdraft, short term loans, secured loans and
unsecured loans and lead to the development of the
trade in the country,