Entrepreneurship is an essential and important part of economic development. The economic development is reflection of the economy. Entrepreneurship is the behaviour of creating new, innovative to make people’s life easier. It helps to set up a profitable business also to public.

Importance of entrepreneurship:

  • Job opportunities

By creating new products and services, there is high possibility to give employment for unemployed. It ultimately results in acceleration of economic development.so, public that encourages and supports entrepreneurship should be considered important for economic growth.

  • Free market evolution

The importance of entrepreneurship is very essential in a free market now a days because they help the market to change their prices, ideas and goods according to consumer preference. For example: entrepreneur gets chance in many ways like to start a platform to study live, start home delivery, online marketing, online booking etc….

Without entrepreneur and without their innovative skills, market would be slow and static and still people would have followed the old trends.

  • Promote research and development

Entrepreneurship is itself a root of innovation. The entrepreneurship often the ideas of goods and services are tested by experimentation. entrepreneurship will provide funds for research and development to universities and institution to do experiments. They promote research and development in the economy.

By doing experiments on goods and services through universities, will get to know, which idea is better and which idea will attract people. And this way become very easy for entrepreneurship also to know how many goods they have to produce and easy to public also to know more about new products.

  • Entrepreneurship can promote social change

Entrepreneurs act as foundation for all the business and enterprises. These entrepreneurs can change or break the tradition or culture of society and reduce the dependency on absolute methods, systems and technologies. These will ultimately bring changes to society.

The changes such as improved lifestyles, generous thinking, better morale, by adopting new technologies, producing new commodities, by establishing new industrial ventures, by generating new employment opportunities and by building new and progressive environment etc…

The social changes gradually impact national and global changes. So, importance of social entrepreneurship must be appreciated.

  • The consequence of business failure

Normally, if a large industry collapses, the industry has almost irresistible damage to the development of state and state of the economy and financial condition of relevant persons. And there will be increase in unemployment also.

The incumbents lost their jobs. Suppliers and financial institutions face a crisis of recovery. Customers will face losses of goods, lack of services, and government losses, taxes. If entrepreneurship failures, the above things should not happen.

These shall be no measurable effect upon the economy and no political repercussions too.

  • Enhance the standard of living

The standard of living is a concept built on an increase in the amount of conception of a variety of goods and services over a particular period by a household. So, it depends on the availability of different products in the market.

Entrepreneurship provides enormous kinds of products of various natures by their innovations. Besides, it increases the income of the people who are employees in entrepreneurial enterprises. By enhancing in standard of living, entrepreneurs help to lead society towards progress.

  • Establishment of new industrial enterprises

The business and industrial entrepreneurs do not feel contended only be establishing enterprises, but they establish new enterprises make the country self-reliant, by establishing new enterprises, people will get the job as no one will be unemployed, economy of country will increase, can explore new ideas and new innovations as trail and error method.

For example: In India, Tata Birla, Dalmia, Singhania, Bajaj and Ambani’s are among several entrepreneurs have established various enterprise one after the another to develop the national economy.

  • Contribution in development and expansion of existing enterprises

Entrepreneurship plays an important role in innovations, development and expansion of the business.

Entrepreneurs make regular efforts for increasing the number of products by their existing enterprises, modernizing of the existing production process, producing new commodities, developing their markets, increasing the clientele, by keeping the products and business in an attractive way to customers, by training employees in taking with customers in a convincing manner or in an attractive manner, keeping needy products in that amount of season as,

example: If rainy season is there, then attractive and new umbrellas have to keep to more income and to increase clients

  • Impact on community development

A community is better off if it’s employment base is divinified among many small entrepreneurial firms. It promotes abundant retail facilities, A higher level of homeownership, fewer slums, better sanitation standards and higher expenditure on education, recreation and religious activities.

Thus, entrepreneurship leads to more stability and a higher quality of community life. Some famous entrepreneur like Mark Zuckerberg, Bill gates, Ellon Musk have used their money to improve people living standards, proper health care and education system.

These qualities of an entrepreneur inspire or influence other entrepreneurs to take it forward.

  • Digitalizing business operations

Because technology evolves so quickly, a business product or service can be rendered obsolete due to new technology’s entry. An entrepreneur is responsible for continuously updating the technology which they use in their business process or activities.

entrepreneur roles regarding technology include:

  • Disposing of equipment that is not improving profitability.
  • Organizing training for staff to help them familiarize themselves with the latest technological programmers in the market to improve efficiency.
  • Using the most popular and recent marketing method and idea will help you to reach your target.
  • To sum up, supporting and promoting entrepreneurship can have a positive impact on the country’s economy and even existing business, and social entrepreneurship increases the likelihood of finding innovation solutions to social challenges faced by communities around the world.The role and importance of entrepreneurship in economic development changes from time to time based on the availability of resources, climate of industries, and how responsive the political system is. More contribution has done by the entrepreneur in favorable conditions as compared to the nations with unfavorable opportunity conditions. It is crystal clear that entrepreneurship acts as a catalyst in the development of the nation’s economy.