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Socio-economic Importance Of Entrepreneurship.docx -...

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SOCIO-ECONOMIC IMPORTANCE OF ENTREPRENEURSHIPEntrepreneurship plays an influential role in the economic growth and standard of living ofthe country. As a startup founder or small business owner, you may think that you are simplyworking hard to build your own business and provide for yourself and your family. But youare actually doing a whole lot more for your local community, state, region, and the countryas a whole. Here are the top 7 important roles an entrepreneur plays in the economicdevelopment of a country.1. Wealth Creation and Sharing:By establishing the business entity, entrepreneurs investtheir own resources and attract capital (in the form of debt, equity, etc.) from investors,lenders and the public. This mobilizes public wealth and allows people to benefit from thesuccess of entrepreneurs and growing businesses. This kind of pooled capital that results inwealth creation and distribution is one of the basic imperatives and goals of economicdevelopment.2. Create Jobs:Entrepreneurs are by nature and definition job creators, as opposed to jobseekers. The simple translation is that when you become an entrepreneur, there is one lessjob seeker in the economy, and then you provide employment for multiple other job seekers.This kind of job creation by new and existing businesses is again is one of the basic goals ofeconomic development. This is why the Govt. of India has launched initiatives suchasStartupIndiato promote and support new startups, and also others like theMake inIndiainitiative to attract foreign companies and their FDI into the Indian economy. All this inturn creates a lot of job opportunities, and is helping in augmenting our standards to a globallevel.3. Balanced Regional Development:Entrepreneurs setting up new businesses andindustrial units help with regional development by locating in less developed and backwardareas. The growth of industries and business in these areas leads to infrastructureimprovements like better roads and rail links, airports, stable electricity and water supply,schools, hospitals, shopping malls and other public and private services that would nototherwise be available.Every new business that locates in a less developed area will create both direct and indirectjobs, helping lift regional economies in many different ways. The combined spending by allthe new employees of the new businesses and the supporting jobs in other businesses addsto the local and regional economic output. Both central and state governments promote thiskind of regional development by providing registered MSME businesses various benefits andconcessions.
4. GDP and Per Capita Income:India’s MSME sector, comprised of 36 million units thatprovide employment for more than 80 million people, now accounts for over 37% of thecountry’s GDP. Each new addition to these 36 million units makes use of even moreresources like land, labor and capital to develop products and services that add to the

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