ENTREPRENEURSHIP AND

ECONOMIC DEVELOPMENT

Dr. Dinesh AwasthiDirector

Entrepreneurship Development Institute of India

Ahmedabad

ECONOMIC GROWTH MEANS A PROCESS WHEREBY AN ECONOMY’S NATIONAL PRODUCT INCREASES OVER TIME. IT COULD ALSO REFER TO INCREASE OVER TIME IN A COUNTRY’S REAL OUTPUT OF GOODS AND SERVICES

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ECONOMIC DEVELOPMENT IMPLIES PROGRESSIVE CHANGES IN THE SOCIO-ECONOMIC STRUCTURE OF A COUNTRY,COMPOSITION OF OUTPUT AND SHIFT IN THE ALLOCATION OF PRODUCTIVE RESOURCES SO AS TO ENSURE SOCIAL JUSTICE.

GROWTH WITHOUT DEVELOPMENT MAY MEAN A LITTLE. ECONOMIC GROWTH IS ONLY A MEANS WHILE HUMANDEVELOPMENT IS THE END. THE GROWTH MUST LEAD TO EQUITYJOB OPPORTUNITIES, ACCESS TO PRODUCTIVE ASSETS, SOCIALSPENDING, GENDER EQUALITY, ENRICHMENT OF HUMAN RESOURCES, GOOD GOVERNANCE AND ACTIVE CIVIL SOCIETY.

‘Entrepreneur is an economic agent who unites all the means of production, providescontinuous management and bears risk”

JB Say“The entrepreneur carries out new combinations - he is an innovator.”

McClelland

SOURCES OF GROWTH:

1. Initially, natural resource base determined growth and development

2. Capital and technology become the major source of growth

3. Now human resources have come to the fore as major determinants of economic growth

WHAT CAUSES ECONOMIC GROWTH?

Economic growth is effect, entrepreneur is the cause. Entrepreneurs explore opportunities, convert ideas into viable business proposition and provide new products and services to the society by bringing together and combining various factors of production. They change life style of the people.

WHAT ENTREPRENEURS DO?

Employment & Income Generation

ENTERPRISES

ENTREPRENEURS

Taxes/Govt. Revenues

Poverty Alleviation

Creation ofWealth

Higher Productivity & Innovations

Increasing Output & Exports

ENTREPRENEURSHIP

Entrepreneurship is the attempt to create value through recognition of business opportunity, the management of risk appropriate to opportunity and through the communicative and management skills to mobilise human, financial and material resources necessary to bring a project to fruition through innovation and creativity.

J A SCHUMPETER:

Key to technological progress was innovation by entrepreneurs. Innovations in:

.Introduction of New Product

.Introduction of new process

.Opening up of New Markets

.New Sources of raw material supply

.New form of Organizations

The carrying out of new combinations, Schumpeter called ENTERPRISE, and the individual whose function it is to carry them out we call ENTREPRENEURS

ENTREPRENEUR“It is not the critic who counts, nor the observer who watches from a safe distance. Wealth is created only by doers in the arena who are marred with dirt, dust, blood, and sweat. These are producers who strike out on their own, who know high highs and low lows, great devotions, and who overextend themselves for worthwhile causes. Without exceptions, they fail more than they succeed and appreciate this reality even before venturing out on their own. But when these producers of wealth fail, they at least fail with style and grace, and their gut soon recognizes that failure is only a resting place, not a place in which to spend a lifetime. Their places will never be with those nameless souls who know neither victory nor defeat, who receive weekly paychecks regardless of their week’s performance, who are hired hands in the labour in someone else’s garden. These doers are producers and no matter what their lot is at any given moment, they will never take a place beside the takers, for theirs is a unique place, alone, under the sun. They are entrepreneurs!” JOSEPH R MANCUSO