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Entrepreneurship Development
Entrepreneurship Development
Prof. K.Shanthi
Entrepreneurship
The entrepreneur is defined as someone who has the
ability and desire to establish, administer and succeed
in a startup venture along with risk entitled to it, to
make profits.
The best example of entrepreneurship is the starting
of a new business venture.
The entrepreneurs are often known as a source of
new ideas or innovators, and bring new ideas in the
market by replacing old with a new invention.
Significance of Entrepreneurship
for Indian Economy
Entrepreneurship plays a major role in economic
condition of a nation, developing countries like India
has to give more importance for entrepreneurship.
Entrepreneur is a person who leads and implements
good ideas which is highly useful for the society that
leads to the economic development of a nation
Entrepreneurship is not a word that describes the
struggle of a common person who puts all his efforts
to build something of his/her own, it is also
something that reflects the growth of the country.
When it comes to entrepreneurship, several things
come to the mind like the day-to-day functioning of
an organization, gathering funds, manpower,
resources and much more.
Another Side of Entrepreneurs
Entrepreneurs really strive to be motivated towards
their work, they work hard for the growth of an
organization that directly improves the Indian
economy.
Entrepreneurship drives business
creation
People who are entrepreneurs are constantly
innovating, finding new market opportunities and
products that can serve them.
Anyone who is creating a new business is attempting to
do something innovative, pushing both technical and
human capabilities.
Businesses creation drives value
addition
Businesses create products and services that add a lot of
economic value.
They solve problems for businesses or consumers, and
the activities they engage in add value.
This value is captured in the GDP and is reflected in the
market value - for e.g. venture capital backed
companies account for 4.3 trillion of US market cap.
Value addition
For a country with more drives job
than 50% of its creation
population below the age of 25, generating
employment is critical. India has a troubling issue
where more than 30% of the youth is unemployed -
creating jobs is the only solution to this problem
which can be destabilizing.
Companies that are able to generate value will hire
more people to generate even more value.
Job creation drives consumption
Once people find employment and have jobs, they have
a steady stream of income.
With income comes the ability to purchase and
consume - a country that has more employed people
is also able to spend and consume more.
Consumption drives
entrepreneurship:
As people begin to consume more, a larger market is
created.
Higher consumption also means varied consumption,
people have more evolved needs and wants.
Who serves these more complex, large, new needs?
Entrepreneurs.
Contribution to the GDP
In a fast-growing economy like India, the
entrepreneurs play a vital role in producing the
optimum amount of products and services in
response to the demand by the people.
If there were no entrepreneurs, the country would be
solely dependent on the imports and multinational
companies and the GDP would be adversely affected
or collapse.
Therefore, the economy is hugely dependent on the
entrepreneurs for its GDP generation.
Foreign Exchange Earnings
• Demonstrates ambition
• Prefers working independently
• Is opportunistic
• Demonstrates leadership
• Is perseverant
• Innovates
• Is flexible
• Creates & extracts value
• Resourcefulness
Famous People with a High
Entrepreneurial Nature
Warren Buffet (investor)
Lucy Peng (entrepreneur)
Steve Jobs (CEO of Apple Computers)
Henry Ford (Industrialist)
Thomas Edison (Investor and inventor)
Warren Buffett—one of the world's richest people,
consistently ranking high on Forbes' list of
billionaires.
His net worth was listed at $100 billion as of June
2022.
Buffett is known as both a savvy businessman and
generous philanthropist.
Lucy Peng is a Chinese billionaire who co-founded
the Alibaba Group.
As such, she has held a number of important positions
in said company, with an excellent example being
how she is the executive chairwoman of its Ant
Financial Services.
The entrepreneur who is a business leader looks for
ideas and puts them into effect in fostering economic
growth and development.
Entrepreneurship is one of the most important inputs
in the economic development of a country.
The entrepreneur acts as a trigger head to give spark
to economic activities by his entrepreneurial
decisions.
Role of Entrepreneurship in
Economic Development