Role of an Entrepreneur

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PAPER 

ON

ROLE OF ENTREPRENUERS IN BUILDING AN ECONOMY

FOR NATIONAL CONFERENCE AT ABBAS KHAN COLLEGE FOR WOMEN

SUBMITTED BY Noorain Firdouse Chaitra Shree III SEM MBA HKBK College of Engineering Nagawara Bangalore

Role of entrepreneurs in building an economy Abstract Entrepreneurship is not all about opportunism, the potential start up dreamers need to pick up an important business problem right from the outset. The Millennium Indian Entrepreneur faces a challenge to create a spirit in the form of continuous, careful but rapid experimentation and capturing opportunities that emerge. In an economy as big as India there is always money to encourage an Entrepreneur.

The names are ubiquitous and the success stories scripted are legends in their own right and by every right that could exist.Take the undisputable king of calls, Sunil bhartimittal, whose company Bharti enterprises boasts of a humongous market capitalization of Rs.727 Billion. He was an entrepreneur then and remains now. Take the ingenious examples of Subhas Chandra, Exemplary Kiran MazumdarShaw, News channel czars, Pronoy Roy and Raghav Behl to the world

icons

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Azim

Premji and Narayan Murthy the galaxy of India's Entrepreneurial superstars is as drawn out as it is illustrious. Not surprisingly that this year’s Forbes listing of the wealthiest has more  billionaires additions from India than any other nation, apart from the U.S. This spoke loudly of  the role of entrepreneurs in the economic Development of India. Ten million jobs need to be in order by the year 2020 as estimated by CII and NASSCOM. So, Entrepreneurial contribution towards this cause assumes critical importance.Entrepreneurship was previously considered to be unknown quality of an individual and hence it was believed that entrepreneurs are born and not made. But recent studies have proved that Entrepreneurial activities can be planned and developed in an individual through creation of opportunities, extended Facilities, Allowing Incentives, Developing Competence and group sensitiveness in an individual for all those factors. In the end According to Czarniawska Georges and wolft who chose the language of  theoretical performance rather than Economics to distinguish among Management, Leadership and Entrepreneurship offers a very illuminating characterization of entrepreneurship. According to him management is the activity of introducing order by coordinating flows of things and  people through collective action, Leadership is symbolic performance, expressing the hope of control

over destiny and entrepreneurship is quite simple: "The making of Entire new world". Thus the  purpose of this paper is to highlight the role of entrepreneurs in the development of an economy.

WHO IS AN ENTREPRENUER ?

An entrepreneur is a person who comes up with a new idea or invention and brings together a country's resources (land, labor and capital) to take the idea to the marketplace. Entrepreneurs manage and assume the risk of a business enterprise. They improve established products and services, or they create new ones.

The characteristics of an unique entrepreneur are: •

He is a person who develops and owns his own enterprise



He is a moderate risk taker and works under uncertainty for achieving the goal



He is innovative



He peruses the deviant pursuits



Reflects strong urge to be independent



Persistently tries to do something better 



Dissatisfied with routine activities



Prepared to withstand the hard life



Determined but patient



Exhibits sense of leadership



Also exhibits sense of competitiveness



Takes personal responsibility



Oriented towards the future



Tends to persist in the face to adversity



Convert a situation into opportunity.

Entrepreneurs occupy a central position in a market economy. For it's the entrepreneurs who serve as the spark plug in the economy's engine, activating and stimulating all economic activity. The economic success of nations worldwide is the result of encouraging and rewarding the entrepreneurial instinct.

Entrepreneurs seek disequilibrium--a gap between the wants and needs of customers and the   products and services that are currently available. The entrepreneur then brings together the factors of production necessary to produce, offer and sell desired products and services. They invest and risk their money--and other people's money--to produce a product or service that can  be sold at a profit.

More than any other member of our society, entrepreneurs are unique because they're capable of   bringing together the money, raw materials, manufacturing facilities, skilled labor and land or    buildings required to produce a product or service. And they're capable of arranging the marketing, sales and distribution of that product or service.

Entrepreneurs are optimistic and future oriented; they believe that success is possible and are willing to risk their resources in the pursuit of profit. They're fast moving, willing to try many different strategies to achieve their goals of profits. And they're flexible, willing to change quickly when they get new information.

Entrepreneurs are skilled at selling against the competition by creating perceptions of difference and uniqueness in their products and services. They continually seek out customer needs that the competition is not satisfying and find ways to offer their products and services in such a way that what they are offering is more attractive than anything else available.

The emergence of entrepreneurship in this part of the country got localized and spread effect, took its own time. The concept of growth theory seems to be closely related in explaining the theory of entrepreneurship development as well. After the Second World War entrepreneurship received new meaning for attaining economic development within the shortest possible time. But in the process they were seriously handicapped by the rigid institutional setup, political instability, marketing imperfection and traditional value system.

The

entrepreneurship is usually understood with reference

to individual business.

Entrepreneurship has rightly been identified with the individual, as success of enterprise depends upon imagination, vision, innovativeness and risk taking. The production is possible due to the cooperation of the various factors of production, popularly known as land, labour, capital, market, management and of course entrepreneurship. The entrepreneurship is a risk-taking factor, which is responsible for the end result in the form of profit or loss.

The economic activity with a profit motive can only be generated by promoting an attitude towards entrepreneurship. The renewed interest in the development of entrepreneurship to take up new venture should emphasize on the integrated approach. The developments of  entrepreneurship will optimize the use of the unexploited resources, generate self-employment and a self sufficient economy.

The young entrepreneur should be motivated to come out with determination to do something of  their own and also to contribute to the national income and wealth in the economy. If the country wants to achieve the growth at the grass root level, through social justice and the crimination of   poverty, it will have to provide institutional support and structural changes in organization of  financial institutions to promote entrepreneurship development. Industrial development in any region is the outcome of purposeful human activity and entrepreneurial thrust.

The entrepreneur who is a business leader looks for ideas and puts them into effect in fostering economic growth and development. He plays a pivotal role not only in the development of  industrial sector of a country but also in the development of farm and service sector.

The major roles played by an entrepreneur in the economic development of an economy are discussed in a systematic and orderly manner as follows:

(1) Promotes Capital Formation

Entrepreneurs promote capital formation by mobilising the idle savings of public. They employ their own as well as borrowed resources for setting up their enterprises. Such type of  entrepreneurial activities leads to value addition and creation of wealth, which is very essential for the industrial and economic development of the country. (2) Creates Large-Scale Employment Opportunities

Entrepreneurs provide immediate large-scale employment to the unemployed which is a chronic   problem of underdeveloped nations. With the setting up of more and more units by entrepreneurs, both on small and large-scale numerous job opportunities are created for others. As time passes, these enterprises grow, providing direct and indirect employment opportunities to many more. In this way, entrepreneurs play an effective role in reducing the problem of  unemployment in the country which in turn clears the path towards economic development of the nation. (3) Promotes Balanced Regional Development

Entrepreneurs help to remove regional disparities through setting up of industries in less developed and backward areas. The growth of industries and business in these areas lead to a large number of public benefits like road transport, health, education, entertainment, etc. Setting up of more industries leads to more development of backward regions and thereby promotes  balance. (4) National Income

 National Income consists of the goods and services produced in the country and imported. The goods and services produced are for consumption within the country as well as to meet the demand of exports. The domestic demand increases with increase in population and increase in standard of living. The export demand also increases to meet the needs of growing imports due to various reasons. An increasing number of entrepreneurs are required to meet this increasing demand for goods and services. (5) Reduces Concentration of Economic Power

Economic power is the natural outcome of industrial and business activity. Industrial development normally leads to concentration of economic power in the hands of a few

individuals which results in the growth of monopolies. In order to redress this problem a large number of entrepreneurs need to be developed, which will help reduce the concentration of  economic power amongst the population. (6) Wealth Creation and Distribution

It stimulates equitable redistribution of wealth and income in the interest of the country to more  people and geographic areas, thus giving benefit to larger sections of the society. Entrepreneurial activities also generate more activities and give a multiplier effect in the economy. (7) Increasing Gross National Product and Per Capita Income

Entrepreneurs are always on the lookout for opportunities. They explore and exploit opportunities, encourage effective resource mobilisation of capital and skill, bring in new  products and services and develops markets for growth of the economy. In this way, they help increasing gross national product as well as per capita income of the people in a country. Increase in gross national product and per capita income of the people in a country, is a sign of  economic growth. (8) Improvement in the Standard of Living

Increase in the standard of living of the people is a characteristic feature of economic development of the country. Entrepreneurs play a key role in increasing the standard of living of  the people by adopting latest innovations in the production of wide variety of goods and services in large scale that too at a lower cost. This enables the people to avail better quality goods at lower prices which results in the improvement of their standard of living. (9) Promotes Country's Export Trade

Entrepreneurs help in promoting a country's export-trade, which is an important ingredient of  economic development. They produce goods and services in large scale for the purpose earning huge amount of foreign exchange from export in order to combat the import dues requirement. Hence import substitution and export promotion ensure economic independence and development. (10) Induces Backward and Forward Linkages

Entrepreneurs like to work in an environment of change and try to maximise profits by innovation. When an enterprise is established in accordance with the changing technology, it induces backward and forward linkages which stimulate the process of economic development in the country. (11) Facilitates Overall Development

Entrepreneurs act as catalytic agent for change which results in chain reaction. Once an enterprise is established, the process of industrialisation is set in motion. This unit will generate demand for various types of units required by it and there will be so many other units which require the output of this unit. This leads to overall development of an area due to increase in demand and setting up of more and more units. In this way, the entrepreneurs multiply their  entrepreneurial activities, thus creating an environment of enthusiasm and conveying an impetus for overall development of the area.

Successful Entrepreneurs List Muhammad Yunus

Founded a banking system 30 years ago to lend small amounts of money to the rural poor in Bangladeshi villages. In 2006 he won Nobel Peace Prize.

Mary Kay

The women behind many gorgeous faces and the founder of Mary Kay Cosmetics, Inc. Mary Kay Ash wrote a book to help women in business. The book later became the plan of action for  starting the company with a mere investment of $5000.

Alvin Ailey

Alvin Ailey, the revolutionary, the dancer and the choreographer, saw the bigger picture while he grew up in the times of violent racial segregation. His signature work has its roots in the great sense of pride in the black race.

Bill Gates

This successful entrepreneur and philanthropist began programing at the age of 13, which later   became his dream. Bill Gates  built his dream with Microsoft Corporation, a company boasting a workforce of 93,000 employees in over 100 countries.

Ben & Jerry

For Ben Cohen and Jerry Greenfield, the sweet taste of success came in many flavors. The duo started the Ben & Jerry's in a gas station after a lot of toil and turmoil and failed attempts at alternative ways of earning money!

Walt Disney Walt Disney, the film producer, director, screenwriter, voice actor, animator, entrepreneur,

entertainer, international icon, philanthropist and above all the creator of Mickey Mouse.

Donald Trump

The real man behind the real-estate development, Donald Trump is an American business magnate, socialite, celebrity and a television personality. The anchor of 'The Apprentice' has   been an ardent student of life himself, which has gained him laurels after laurels.

Other Most Successful Entrepreneurs •

P.T. Barnum - Entertainment (Barnum & Bailey)



Jeff Bezos - Internet (Amazon)



Andrew Carnegie - Steel (US Steel)



Michael Dell - Computers (Dell Computer)



Larry Ellison - Software (Oracle)



Joyce Hall - Greeting Cards (Hallmark)



Milton Hershey - Chocolate



J. W. Marriott - Hospitality



Louis B. Mayer - Entertainment (MGM)



Rupert Murdoch - Media



David Packard - Electronics (Hewlett-Packard)



John D. Rockefeller - Oil (Standard Oil)



Sam Walton - Discount Retail (Wal-Mart)



Oprah Winfrey - Entertainment



Steve Case - Internet (America Online)



Debbi Fields - Cookies (Mrs. Fields)



A. P. Giannini - Banking (Bank of America)

CONCLUSION

A society is prosperous only to the degree to which it rewards and encourages entrepreneurial activity because it is the entrepreneurs and their activities that are the critical determinant of the level of success, prosperity, growth and opportunity in any economy. The most dynamic societies in the world are the ones that have the most entrepreneurs, plus the economic and legal structure to encourage and motivate entrepreneurs to greater activities.

References •

www.entrepreneur .com/article/78478



www.entrepreneurs -journey.com/.../what-role-does-social-media-pla...



www.growthink.com/content/entrepreneurs -role-ceo





http://www.scribd.com/doc/7739634/Role-of-Entrepreneur-indevelopment-of-economy

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