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Importance of Entrepreneurs
An entrepreneur does the maximum utilisation of resources for the production and management of his business
which plays an important role in the development of any country. The importance of an entrepreneur for the
development of the country is listed below:
• Free Market Evolution: Free market is a place where the production of a product is controlled by the demand
and supply of a product. Entrepreneurs are important in a free market as they create a demand for the existing
products in an innovative way matching with the consumer preferences.
• Efficiency Improvements: An entrepreneur boosts up the country’s economy by providing new ventures with
improved infrastructure, jobs to the people, and good quality products with the implementation of new updated
technologies. All this helps in improving the standard of living of the people in the society.
• New Markets: An entrepreneur brings new and innovative ideas to his business to create a new demand for
his products that helps in creating a new market. UBER company owners provided taxi services in a new way of
hiring people with cars and then serving to the people in need through a common platform. All this created a
new market of taxi booking through online platforms.
• New Values: Many of the entrepreneurs provide new values by creating or promoting ethical products that help
in the welfare of a society. They bring awareness like, products are not tested on animals, they are chemical free
that do not contribute to the pollution of the environment, pesticide free, and eco-friendly and do not support
child labour.
Advantages of Entrepreneurship
Entrepreneurship offers several advantages that attract individuals to start and grow their own businesses:
• Flexibility and Independence: Entrepreneurs have the freedom to set their own schedules, make decisions
autonomously, and pursue creative ideas without the constraints of traditional employment.
• High Rewards: Successful entrepreneurs have the potential to earn substantial profits and build wealth through
their ventures. They can also benefit from the scalability of their business ideas.
• Job Creation: Entrepreneurship stimulates job creation and economic growth by hiring employees,
subcontractors, and suppliers, thereby contributing to the community and economy.
• Personal Growth: Entrepreneurship provides opportunities for personal development and learning. Entrepreneurs
continually face challenges that help them develop resilience, critical thinking skills, and leadership qualities.
• Impact on Society: Entrepreneurs often address social or environmental challenges through their businesses,
contributing positively to society through their products, services, and initiatives.
• Control Over Decision-making: Entrepreneurs have control over business strategies, operations, and direction,
allowing them to align their business goals with their values and vision.
• Recognition and Satisfaction: Successful entrepreneurs often gain recognition and respect within their industry
and community, along with personal satisfaction from achieving their entrepreneurial goals.
Overall, entrepreneurship offers individuals the chance to take risks, pursue their dreams, and make a meaningful
impact on their lives and the world around them.
Disadvantages of Entrepreneurship
Entrepreneurship, while rewarding, also comes with its own set of challenges and disadvantages:
• Financial Uncertainty: They often face financial instability, especially in the initial stages of their venture. Cash
flow problems, difficulty securing funding, and the risk of personal financial loss can be significant stressors.
Entrepreneurial Skills-II 75

