Benefits of / contribution of entrepreneurial activities
For increasing national production
To create opportunities – job creation, careers, new products/services
For economic growth: productivity improvement and innovation and also for dispersal of economic power. There are two types of power – muscle and economic power.
Muscle power: Muscle power is nothing but physical strength one possesses to exercise power on other. It was more dominant in earlier times. Economic power: In modern society it is more dominant it is the natural outcome of industrial and business activities. Unless industrial and business activities are planned economic power is likely to be concentrated only in a few hands.
For weakening monopoly: monopoly in trade industry and business holding is the commonest evil in most of the developing countries. It is due to lake of sufficient number of entrepreneurs planned efforts for encouraging and supporting self employment among the youth. It takes a long way in weakening the tendency of monopoly holdings.
For reinvesting the profit for the welfare of the area of profit generation: when an outsider establishes certain enterprise most of his profit share is invested at the place of his origin which may be different from the location of the unit. If the entrepreneur establishes the unit most of his profit will be reinvested in the same place where the unit is established.
Challenging career option: After completion of formal education there are two career options available.
To accept employment in government, public and private establishments and earn fixed salary.
Self employment under which one perceives innovates an idea, organizes production services by mobilizing resources and finally markets the products and services to earn profits.
Wage employment versus self employment: the two career options differ in terms of nature, scope, orientation, satisfaction, contribution, earning and status. Wage employment has always limited scope and self saturation.
Poverty alleviation and social opportunities
Create new customers and open up new markets
Last modified: Wednesday, 1 February 2012, 6:16 AM
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