What Is The Role Of Entrepreneurship In Economic Growth?

The Role of Entrepreneurship in Economic Growth:

This primarily involves the:

• Increasing the per capita output and income of the people of the country. Initiating and creating change in the structure of business and society. Further growth and increased output arises, thus to enable more wealth to be divided among the various participants (stakeholders).
• Generation of innovation that leads to the creation of new product and service. Improvisation and modification on existing product to better suit market and customers’ needs.
• Creation of self-employment and to cut back the dependency of potential employment of new workers in government sectors.
• Streamline of the private sector and encourage the inclusion of new technology that is less labour dependent.
•

Innovation & Entrepreneurship

An innovation is gainful modification to the product or process. An existing product can be made better by adding more features modifying design to make it safer or more user friendly. Or the method may be modified to produce it in more cost effective way. Sometimes the raw materials are substituted to bring down the cost. All these are examples of innovation. In short Innovation is achieved by Value Analysis/Value Engineering.

It’s never easy to compete against old players in any walk of life. New entrant faces considerable odds in the beginning and only this battle. Innovation is the best ally of an entrepreneur in this battle. It helps him to gain competitive advantage in his business either due to cost advantage or due to differentiation of product. Innovations in marketing and distribution help him gain the market share quickly.

Creativity & Its Role in Developing Business