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ROLE OF ENTREPRENEURSHIP
Entrepreneurship plays a crucial role in both social and economic development, contributing to job creation, innovation,
and the overall well-being of communities. Countries which encourage entrepreneurship have grown fast.
Let us discuss the social and economic role of an entrepreneurship in detail:
• Economic Development—Money in Circulation: An entrepreneur provides better and cheaper products and
services for customers that brings economic growth. As entrepreneurs grow their business, investors put money
into their businesses and expect good returns. As more and more entrepreneurs create business opportunities, the
economy grows.
• Social Development—Creation of Jobs: Entrepreneurs start their business initially on a small scale. If the business
shows some profit and grows over time, then they need to expand operations, creating more jobs. Good quality jobs
enable more people to earn money and have a good life.
• Improved Standard of Living—More things available to live a comfortable life: When an entrepreneur is involved
in selling goods like automobiles, furnitures, real estates, mobile phones and mobile service then it helps people to
live a more comfortable life.
• Optimal Use of Resources: Entrepreneurs contribute a lot in different ways in exploring both renewable and
non-renewable natural resources present around us so that these natural resources can be used in optimal ways
that reduce cost and increase their profit.
• More Benefits at Lower Prices Products and Services at Competitive Prices: Entrepreneurship plays a crucial role in
providing more benefits at lower and competitive prices by driving market competition, increasing innovation, and
keeping costs low, ultimately benefiting consumers and contributing to economic growth and development.
Benefits of Entrepreneurship
The various benefits of entrepreneurship are as follows:
• Do what you are interested in: Entrepreneurship helps the entrepreneurs to pursue their passion and interest,
allowing for greater creativity and innovation in their work.
• Work for yourself, and not for others: Entrepreneurship provides the freedom to design work hours, select projects,
and work from any place. Entrepreneurs can decide the kind of work they would like to do and how they want to do it.
• Make profits for yourself: As an entrepreneur, one can decide how much money they want to earn and how much
they want to invest in the business. They decide on the salary, wages and incentives of the employees.
• More risk, more profit: Entrepreneurship involves the risk of failure, but successful entrepreneurs are often
courageous and ready to take risks. Taking risks can lead to greater financial success, as it allows entrepreneurs
access to more resources.
DIFFERENCE BETWEEN BUSINESSMAN AND ENTREPRENEUR
It is generally assumed that an entrepreneur and a businessman are the same people but both of them have a different
approach for their business. A businessman uses traditional ways of doing business but an entrepreneur goes for
innovative ways of doing a business. Let us see the main differences between the two:
Factors Businessman Entrepreneur
A businessman is a person who starts a An entrepreneur is a person who starts an
business based on an idea already existing enterprise with a new idea or concept. For
Meaning
in a society. For example, opening a grocery example, selling products through online
shop, mobile shop, etc. services.
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