Importance of Entrepreneurship

Importance of Entrepreneurship

Entrepreneurship being an intangible factor is the moving force and development is the consequence. It has an important role in the context of a developing nation like India which is confronted with major socio-economic problems.

Entrepreneur-ship can play an important role not only in the industrial sector of a country but in the farm and service sectors also.
India is being attacked by baffling problems of over population, unemployment, under-employment, poverty and the like. Entrepreneurship is consistently equated with the establishment and management of small business enterprises
and setting up these units is the solution to these baffling problems.

Concentration of economic power, regional imbalances, exploitation by monopolists, and many other giant problems find their solutions in the development of small scale
industry which is another name of entrepreneurship in the developing countries. Mahatama Gandhiji also asserted the same. Entrepreneurship has not grown much in India but it is gaining importance fast. The factors which retard the success of entrepreneurship in India are inadequate infrastructural facilities, shortage of capital, technical knowledge, and transport, absence ofcheap and good quality raw material and shortage of power etc. The government has been taking significant steps to encourage entrepreneurship as entrepreneurship is the only solution to various problems of developing countries.

Entrepreneurship caught strong waves during the last three decades and became a worldwide movementspreading across countries, regardless of their level of development. Even in Europe and United States, revival of
small business has been seen for more than a decade. Constant change and innovations are simply a necessity of entrepreneurship and is becoming essential to survive in a global economy. An American magazine “The Economist (1999) recently put it, “Innovation has become the industrial religion of the late 20th Century.” It is being increasingly realised that today’s managers and businessmen need not only managerial skills but entrepreneurial skills as well.

Entrepreneurship needs to be desmystified and transformed into a skillby teaching and practising. Skillofentrepreneurship
knows how to turn an ordinary corporation, managed in a routine manner, into an entrepreneurial organisation. People within the organisation can be trained to:

(i) detect the opportunities;

(ii) persue the opportunities and rewarded;

(iii) to lesson the consequences of failing.

Entrepreneurship plays a premium mobile role in promoting development of an economy. Hence, it is said that an economy is the effect for which entrepreneurship is the cause.

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