AS A

Assignment on UNIVERSITY
BANGLADESH
“Role of entrepreneurship in economic development of a country”

Submitted to

Dr. A. K. M. Helal uz Zaman

Associate Professor
Faculty of Business,
ASA University Bangladesh.

Submitted by:
Istiauk Alan bhuiyan

082-12-0155

4th batch

Date of submission: 21st October 2010

Introduction:
Entrepreneurs act as the locomotives for the economic development of the country. There are
various roles which Entrepreneurs play in the economy. Through Entrepreneurship, new
businesses and opportunities are explored. Entrepreneurship also promotes efficient mechanism
of production like right allocation of capital, labor and technology.

Entrepreneurship increases the innovation in an economy which brings evolution in the social
system. Entrepreneurship also results in the growth of the industrial sector which ultimately
increases the economic growth of the economy. Entrepreneur also explores resources and make
them valuable for the economy. For example, economic development of Estonia is contributed to
the development of enterprise sector, which shows development because of contributions of
Entrepreneurs.

Entrepreneurship:
Capacity and willingness to undertake conception, organization, and management of a
productive venture with all attendant risks, while seeking profit as a reward. In economics,
entrepreneurship is regarded as a factor of production together with land, labor, natural
resources, and capital. Entrepreneurial spirit is characterized by innovation and risk-taking, and
an essential component of a nation's ability to succeed in an ever changing and more competitive
global marketplace.

Entrepreneurship in Economy

It is all about the importance of Entrepreneurship in economy of any country. The economy is all
about a social system that can be realized in terms of production, exchange and distribution. All
the economic developments of a country are raised by the entrepreneurs thus; they play a very
important role in upbringing of an economy.

Introduction - "Economy":

The word economy can be defined as a social system that can be realized in terms of production,
exchange, distribution and consumption of goods and various other services. This word has
evolved in earlier times and today, it has become a very important part for a country. The
economy of a country consists of many sectors. It also includes industrial economy as well.
Today's modernized economy mainly comprises of four different sectors known as the primary,
secondary, tertiary and quaternary sector.

Not disagreeing with the proclamation that the renaissance and sustenance of the financial or
monetary system of a nation to the premier degree hangs down on how robust private enterprise
be existent over there. As a matter of fact, the heftier entrepreneurship, the supplementary the
economy of a country will burgeon to the acute limits. The well-being of a financial system can
be better emphasized as diligence depicted that one has to look out for some financial
development along with a group of people by new and innovative ideas. So, now to rise as an
active part in the economy one has to play a very important role in the development of the
economy.

Economic Development: A Preamble:

There is a drastic variation between economic growth and economic development. The word
economic growth means extension of a particular gauge, for instance: real national income, gross
domestic product and per capita income. On the contrary, economic development accumulates in
much more than the economic growth. It is much more than simple advancements in diverse
signs including literacy toll, death rate, birth rate, and poverty rates. Gross Domestic Product is
an unambiguous gauge and is important for the well-being of the economy.

ROLE OF ENTREPRENEURSHIP IN ECONOMY

Entrepreneurship is basically a process of “creative destructions”. Joseph Schumpeter (1911-
1950) explains this. Established ways of doing things are destroyed by creative, new and better
ways of doing things. Entrepreneurship therefore challenges the order of society through creative
changes.

“Entrepreneurship is the process and entrepreneurs are innovators who use the process to shatter
the status quo through new combinations of resources and new methods of commerce.”

- Joseph Schumpeter

“Entrepreneur has to redirect resources from areas of low or diminishing results to areas of high
or increasing results. He has to slough off yesterday and to render obsolete what already exists
and is already known. He has to create tomorrow.”

- Peter Ducker (1974)

“Entrepreneurship is the process of creating wealth by bringing together resources in new ways
to start a venture that benefits customers and rewards its founders for their innovation.”

- David H. Holt (1993)

“Resources to produce results must be allocated to opportunities rather than to problems . . .

Maximization of opportunities is a meaningful, indeed a precise definition of the entrepreneurial
job. It implies that effectiveness rather than efficiency is essential in business.”

- Peter Drucker (1964)

Now I try to discuss some specific points

The role of entrepreneurs in economic development has proven its worth according to numerous
statistics and surveys that show how countries that have supported entrepreneurs have grown
more developed than the rest of the other countries worldwide. Now, here are the main reasons
why the role of entrepreneurs in economic development prove to be highly important and all the
time essential:

One role of entrepreneurs in economic development is the provision of jobs. Most of the fresh
employment opportunities can be traced to have been offered by small business entrepreneurs
since the 1980s. This it can make it clear that it can really drive many nations to a more
prosperous status in the economy.

It is a prioritized contributor to research and development. Entrepreneurs are known to be

number one innovators. They are the type of individuals who are always thinking of new things
to do to make processes easier and more accessible than what we have gotten used to. It brings
wealth not just to the individuals involved in the business but the whole nation as well.
Remember that each amount of wealth earned by a single person is also felt by the entire nation
through the exchange of goods, tax contributions and the likes. It poses a challenge to many
people. Entrepreneurship can be a very daunting task but it also offers great and amazing rewards
to those who are persevering and daring enough to reach the greater heights. These are just four
of the many other roles and benefits entrepreneurship can bring to the economy at the local and
global setting. But just by simply understanding these four, you would surely start to appreciate
the role of entrepreneurship in developing economies.

Conclusion:
Entrepreneurship cannot be denied to be always closely related to any form of economic
development. The role of entrepreneurs in economic development can become so crucial
especially in cases of small business start ups. Through time, small businesses may have been
not closely noticed, but it has helped a lot of developing countries then to be a much progressive
one this time around.

Entrepreneurship plays an important role in the development of economy. Every developed

nation have benefited from their entrepreneurs in building the economy. So government needs to
give some extra benefit for the entrepreneur, how that they can able to give more services to his
country.