Need for entrepreneurship

 

Growth of any economy is majorly a function of the amount of innovation and entrepreneurial ventures put in together. The world has seen the rising of the European countries and the US towards development solely as a result of innovators during the industrial revolution. The recovery of Germany and Japan post the World-War, and most recently China’s status of developed economy, are all driven by entrepreneurship and innovation.

India has been an entrepreneurship driven country in its recent past (around 300 years back) with major innovations in fields of astronomy, mathematics, physics, philosophy etc.  Owing to colonisation and missing industrial revolution, the country suffered heavy losses in the GDP.

These values are of greater significance to Indian scenario as the complete potential of the unutilized enormous human resources can be exploited only when they are properly employed. The IT and telecom sector provides shining examples of the miracles and the amount of growth and development brought about by entrepreneurs and their innovation to the economy of India.

Entrepreneurship and innovation have following contributions to the Indian economy:

• Increase the rate of growth in GDP
• Increase the employment opportunities
• Optimum utilization of available resources (human resources and others)
• Increase economic diversification
• Continued innovation in techno-managerial practices
• Prevents drainage of wealth to foreign economies else needed for solving those problems
• Improvement in international competitiveness
• Reduce the need of imports
• Promotes balanced development of nation.

 

Thus entrepreneurship offers employment to others and also leads to emergence of other economic activities. This creates unending employment opportunities.
Entrepreneurship acts as an encouragement for innovation- a driving force for real life problem solving and technological innovations.

Thus, a developing economy like India, can attain a developed status only when supported by entrepreneurship , innovation and technology.