The self-reliance of a nation comes when the country is economically stable and robust. Entrepreneurship is one of the vital factors for national self-reliance. Manufacturers and industrialists try to produce and import products and goods to reduce dependency on foreign countries. At the same time, entrepreneurs create value and demand for goods and services nationally and internationally.
Entrepreneurship is a revolutionary act of certain people within dynamic processes of finding the gap and opportunity in a market and acting upon producing and selling new product or service, innovation by accepting the risk in parallel.
As explained by Maria Tresite, “Entrepreneurship is a trait which can be developed by training and learning. It is not a characteristic or part of the gene. The same has been discussed in my book Entrepreneur’s psychological capital: An enticing affair. Various internal and external factors decide an individual’s fate as an entrepreneur. Recent research has revealed that family does play a pivotal role in shaping the success of entrepreneurs.”
Many believe higher education plays an essential role in developing entrepreneurship and stimulating and encouraging it among students in this contemporary era. There are plenty of instructive and didactic methods that are conditioned by many factors related to the type:
- Organization and functioning of a specific university
- Prevailing in the country, standards of the teaching and higher education system
- Financial resources and a system of financial support for the development of innovative startups and other business ventures set up by students
- The specificity of functioning and development of university incubators and accelerators of entrepreneurship and innovation.
On the other hand, entrepreneurship is not a phenomenon that emerges and grows automatically and immediately. There are plenty of elements that influence the positive and negative in the development and enrichment of the entrepreneurial journey.
1. Technical knowledge
2. Entrepreneurial training
3. Market contacts
4. Family business
5. Availability of capital
6. Successful role models
7. Local human resources
8. Government and institutional support
Barriers and challenges:
1. Lack of technical skills
2. Lack of market knowledge
3. Lack of business knowledge
4. Time pressure and distractions
5. Legal and bureaucratically constraints
6. Patent inhibitions
7. Political instability
8. Non-cooperate attitude of banks and other institutes
Role of Entrepreneurs in Economic Development
To better understand entrepreneurship’s role in economic development and growth, it is necessary to know economic development itself first.
Mladen M.Ivic explains: “Under Economic Growth means constantly increasing volume of production in a country or an increase in the gross domestic product as the main quantitative indicators of production for a period of one year. Economic development is not only quantitative changes when it comes to the economic position of the country but also qualitative changes (changing the economic structure, the emergence of new sectors and industries, new jobs, etc..). They lead to the better and more complete satisfaction of all human needs. Production per capita is a measure of the ability of a society to achieve its goals of social and economic development, all to meet the constantly growing social needs. The increase in output per capita in economic theory is expressed as economic growth, without which no economic development, but does not have any economic growth to be a function of economic development.”
Furthermore, entrepreneurship is one of the essential pillars of economic growth. As Edward Lazer emphasizes, “The entrepreneur is the most critical player in a modern economy.“
Entrepreneurship is generally recognized as a critical factor for economic development. At the same time, the literature emphasizes that entrepreneurship is a very heterogeneous concept. For example, entrepreneurs differ in their motivations for starting a business, legal status, and aspirations. We expect such characteristics to be a significant determinant of enterprise capacity to create jobs, innovation, and generate economic growth.
Linking entrepreneurship to economic growth is certainly not new. In his 1911 classic traits Theory of Economic Development, Schumpeter proposed that entrepreneurs starting new businesses provided the engine for economic growth.
Therefore, economic development does not occur only by technical progress unless entrepreneurs use technological breakthroughs in their businesses, affecting the economy.
Who Are the Entrepreneurs?
Entrepreneurs serve as the catalysts in the process of industrialization and economic growth.
The entrepreneur organizes and does the practical experience of using capital, labor, and technology.
The entrepreneur is the key to creating new enterprises that energize the economy and rejuvenate the established enterprises that make up the economic structure.
Some of the roles of entrepreneurs are
- Capital Formation
- Improvement in Per Capita Income
- Generation of Employment
- Balanced Regional Development
- Improvement in Living Standards
- Economic Independence
- Backward and Forward Linkages.
- Inspire Others towards Entrepreneurship.
- Create Knowledge Spillovers.
- Augment the Number of Enterprises
- Provide Diversity in Firms
- Organizing Society’s Productive Resources
- Production of New Articles
- Development of New Production Technique and a Few Others.
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