What are the main Functions of Entrepreneurship?

(Last Updated On: September 18, 2019)

Entrepreneurship plays an important role in economic development and the living standard of the society. Functions of entrepreneurship includes, financial ability, more career scopes, independence, social and economic contributions, etc. This article will be discussing about crucial functions of entrepreneurship that make it dominant over time.

As a startup founder or small business owner, you may feel like you’re just working hard to build your business and provide for yourself and your family. But you are actually doing so much more for your local community, state, region and country.

Functions of entrepreneurship

Entrepreneurship plays a role in the country’s economic growth and the living standards of the country. As a startup founder or small business owner, you may feel like you’re just working hard to build your business and provide for yourself and your family. But you are actually doing so much more for your local community, state, region and country. Here are the top most important roles of an entrepreneur in the country’s economic development.

Here are some important role entrepreneurs play in the economic development of society:

Helps to create and share wealth

By establishing a business entity, entrepreneurs invest their own assets and attract capital from investors, lenders and the public.

It strengthens public resources and allows people to benefit from the success of entrepreneurs and growing businesses. This type of capital is the capital that is one of the basic requirements and goals of economic development as a result of wealth creation and distribution.

Improves people’s quality of life

Increasing the quality of life of people in a community is another key goal of economic development. Entrepreneurs play an important role in enhancing the quality of life of a community. They not only create it, but also develop and adopt innovations that lead to the improvement of the quality of life of their employees, customers and other stakeholders in the community.

Creating Employment Opportunity Jobs

Entrepreneurs are by job seekers by nature and by definition job creators. The simple translation is that when you are an entrepreneur, you are looking for less jobs in the economy and then you are looking for many other jobs. Creating such work by new and existing businesses is again one of the fundamental goals of economic development.

functions of entrepreneurship

Balanced regional development

Establishment of new business and industrial units helps entrepreneurs in regional development by identifying less advanced and backward areas. The growth of industries and businesses in the region leads to improved road and rail connectivity, airport, stable electricity and water supply, schools, hospitals, shopping malls and other public and private services that would otherwise be unavailable.

Each of the new businesses identified in the less developed regions will create both direct and indirect jobs, helping to lift the regional economies in various ways. All new employees of the new business and other business support jobs jointly add local and regional economic output.

Creating and Sharing Assets

By establishing a business entity, entrepreneurs invest their own assets and attract capital from investors, lenders and the public (debt, equity, etc.). It strengthens public resources and allows people to benefit from the success of entrepreneurs and growing businesses. This type of capital is the capital that is one of the basic requirements and goals of economic development as a result of wealth creation and distribution.

Create a job

Entrepreneurs are by job creators by nature and by definition are job seekers. The simple translation is that when you are an entrepreneur, you are looking for less jobs in the economy and then you are looking for many other jobs. Creating such work by new and existing businesses is again one of the fundamental goals of economic development. That’s why the government. Startup India has launched initiatives to promote and support new startups like Make in India initiatives to attract foreign companies and their FDI in India’s new economy. This creates opportunities for all of these work and is helping to increase our value globally.

Living standards

Increasing the quality of life of people in a community is yet another key goal of economic development. Entrepreneurs again play an important role in improving the quality of life of a community. They not only create it, but also develop and adopt innovations that lead to improving the quality of life of their employees, customers, and other stakeholders in the community. For example, automation that reduces production costs and enables faster production makes a business unit more productive, while providing customers with the same products at lower prices.

functions of entrepreneur

Export

Any growing business wants to finally start with export to expand their business in foreign markets. This is an important component of economic development as it provides access to the large market and leads to inflationary expansion and access to the latest advanced cutting edge technology and processes used in more advanced foreign markets. Another key benefit is the expansion, which leads to more stable business revenues in the local economy during the economic downturn.

Balanced Regional Development

Entrepreneurs help in regional development by establishing new advanced business and industrial units and positioning them in less developed and backward regions. The growth of industries and businesses in the region leads to improved road and rail connectivity, airport, stable electricity and water supply, schools, hospitals, shopping malls and other public and private services that would otherwise be unavailable.

Each of the new businesses identified in the less developed regions will create both direct and indirect jobs, helping to lift the regional economies in various ways. All new employees of the new business and other business support jobs jointly add local and regional economic output. Both central and state governments promote such regional development by offering various benefits and discounts to registered MSME businesses.

functions of entrepreneur

GDP and earnings per capita

India’s MSME sector, which has 36 million units which provides jobs for 80 million people, now accounts for 37% of the country’s GDP. Each new addition to these 36 million units uses more resources such as land, labor and capital to increase the country’s income, national product and per capita income. This increase in GDP and per capita income is again one of the essential goals of economic development.

Community Development

Economic development does not always translate into community development. Community development requires infrastructure for education and training, healthcare, and other public services. For example, you need highly educated and skilled workers in a community to attract new business. There are educational institutions, technical training schools and internship opportunities, which will help build a pool of educated and skilled workers.

The functions of entrepreneurship is immense. Hope this article on functions of entrepreneurship was useful to you.

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