What Is The Role Of Entrepreneurship In The Economy Of Country?

The role of entrepreneurship in the economy of a country is to inspire new business ventures that support wealth building and future prosperity. Entrepreneurs create new business opportunities in all areas of industry; they support the growth and health of a country's national economy. Without entrepreneurship, a country's economy may lack:

• innovation (research, development, new inventions and products)
• employment (entrepreneurs create jobs whenever they start new companies)
• profits (entrepreneurs add value to the national economy by buying and selling products and services).

Countries all have their own sets of resources; these may include mining deposits, farmlands, orchards, and fisheries. However, getting these resources (if they are not nationalized, or government-run) out into the marketplaces (national and international) depends on the ideas and implementations of entrepreneurs. These visionary business people do market research, create business plans, seek out investors and financing, and then strive to create products and services that utilize a country's resources.

Without the actions of entrepreneurs, a country may not reach its full potential; after all, national economic growth is dependent upon the proper ideas, innovations, and advancements. From technology to food products to entertainment...entrepreneurs are the backbone of the national economy, sharing space with established multinational corporations and government agencies. Entrepreneurs create jobs, increase profits, and pay taxes that support a country's social programs, health care system (if public, not private) and infrastructure (roadways, etc.). Without the tax dollars of entrepreneurs, countries might not be able to properly care for their citizens. 

Governments that recognize and respect the goals of entrepreneurs tend to prospective entrepreneurs with plenty of incentives to start new businesses. Grants, tax breaks, and subsidies may be offered to those who wish to take the plunge and go into business for themselves. Countries that favor multinationals over small and medium-sized businesses run by entrepreneurs may find that their brightest new talents leave the country for greener pastures. Sometimes, this occurrence is referred to as "brain drain".

Entrepreneurs acts 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. Entrepreneurs 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 gives rise to employment opportunities increasing the standards of living, this booms business since there is a chance to purchase goods and services by by a high percentage of citizens due to high employment.

Roles of entrepreneurship in the development of the economy

The role is increasing the amount of human capital for a country.