Entrepreneurship Development and Communication Skills (1+1)

4.1.4 Importance of Entrepreneurship

Entrepreneurship is essential for economic development. In capitalist and developed countries, private entrepreneurs have played an important role in their economic development. In socialist countries, the State (or Government) is the entrepreneur. In under developed countries, the government, has to play a vital role in economic development. But in a developing country like India which follows a mixed economy, the role of both the government and the private entrepreneurs is equally important. The role of private entrepreneurs has further increased because of liberal economic policies followed by the Indian Government in the recent years.

1. The entrepreneur is an innovator. He tries to find new technology, products and markets. He increases the productivity of various resources.

2. The entrepreneur stands at the centre of the whole process of economic development. He conceives business ideas and puts them into effect to enhance the process of economic development.

3. Entrepreneur is an agent of progress in the society.