How entrepreneurs can contribute to the economic development of a country? i) Entrepreneurs can promote capital formation in a country
- Entrepreneurs need money to set up and run their firm. To do that, they will need to borrow or employ their own resources or money. This will cause money to be channelled to help the country's economy as an economy will only thrive when there is money circulating in the economy of a country.
ii) Entrepreneurs can create employment opportunities to the public
- By setting up their own firm, entrepreneurs need their own workforce to run their firm. They will need to employ their own workforce, thus creating jobs for public. This can reduce the unemployment rate of a country and also raise the county's standard of living as most people will be employed and will have spending power to boost the country's economy.
iii) Entrepreneurs can help in the development of less developed areas
- Entrepreneurs will need a place to start up their business. Some entrepreneurs might choose to start up their business in less develop areas as land is cheaper there. By setting up factories and offices in less developed areas, these lead to large amount of public infrastructure such as transportation system, healthcare, schools and business areas. This in end will promote development and balance regional development in a country, thus strengthening the economy of a country. iv) Entrepreneurs can increase the gross national product (GNP) of a country
- When entrepreneurs see a window opportunity, they will exploit that opportunity to create new products and services and develop markets for the growth of economy. Producing products can help in increasing the gross national product (GNP) which is the market value of all the products and services produced in one year by labour and property supplied by the people of a country. An increase an GNP is a sign of economic growth in a country.
v) Entrepreneurs can promote international trade...
Please join StudyMode to read the full document