Page 9 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT

Entrepreneurship and Small Business Management

Notes by the same play a considerable role in the development of nation. The business as well as
the entrepreneur contributes in some or other way to the economy, may be in the form of
products or services or boosting the GDP rates or tax contributions. Their ideas, thoughts,
and inventions are also a great help to the nation.
2. Provides employment to huge mass of people: People often hold a view that all those who do
not get employed anywhere jump into entrepreneurship, a real contrast to this is that 76% of
establishments of new business in the year 2003 were due to an aspiration to chase openings.
This emphasizes the fact that entrepreneurship is not at all an encumbrance to an economy.
What more is that approximately 34 million of fresh employment opportunities were created
by entrepreneurs from the period of 1980. This data makes it clear that entrepreneurship
heads nation towards better opportunities, which is a significant input to an economy.

3. Contributed towards research and development system: Almost 2-3% of all innovations
are due to the entrepreneurs. Without the boom of inventions the world would have been
a much dry place to live in. Inventions provide an easier way of getting things done
through better and standardized technology.

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Caution Earning money is easy and spending is even easier but spending money wisely is
difficult. Saving your resources and maximizing its potential is a huge challenge. Unplanned
spending also leads to mismanagement of terms of credit and sales cycles, and ultimately
a quick closure of the entrepreneur venture becomes inevitable.
4. It is a challenging opportunity for the people: Although entrepreneurship is a challenging
task but in most of the cases the rewards it gives are much more than what one anticipates.
It does not only reward an entrepreneur at financial levels but also on individual level. It
provides self-satisfaction to the entrepreneur.
5. Entrepreneurship provides self-sufficiency: The entrepreneur not only become
self-sufficient but also provide great standards of living to its employees. It provides
opportunity to a number of people working in the organization. The basic factors which
become a cause of happiness may be liberty, monetary rewards, and the feeling of
contentment that one gets after doing the job. Therefore the contribution of entrepreneurs
makes the economy an improved place to live in.

6. Sky-scraping heights of apparent prospect: The individual gets maximum scope for growth
and opportunity if he enters into entrepreneurship. He not only earns, the right term
would be he learns while he earns. This is a real motivating factor for any entrepreneur as
the knowledge and skills he develops while owning his enterprise are his assets for life
time which usually, lacks when a person is under employment. The individual goes
through a grooming process when he becomes an entrepreneur. In this way it not only
benefits him but also the economy as a whole.

Self Assessment

Fill in the blanks:
5. Entrepreneurship provides opportunities of employment to huge mass of ………………..
6. The entrepreneur not only become self-sufficient but also provide great …………………
of living to its employees.
7. It does not only reward an entrepreneur at financial levels but also on …………….. level.
8. The individual goes through a ………………….. process when he becomes an entrepreneur.

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