Need for Entrepreneurship
Class 11 CBSE Entrepreneurship — Why Entrepreneurship Matters for Economic Development
Economic Context of Entrepreneurship
Role across economic systems:
- Capitalist countries: Private entrepreneurs play an important role in economic development.
- Socialist countries: The state (Government) is the entrepreneur.
- Under-developed countries: Private entrepreneurship is not encouraged because of the degree of risk involved. The government has to play a vital role.
- India (mixed economy): ⭐ Role of both government and private entrepreneurs is equally important. Role of private entrepreneurs has further increased because of liberal economic policies since 1991.
Economic growth depends on the rate of innovation, which in turn depends on the number and quality of entrepreneurs in society. An entrepreneur is an agent of progress.
The reason for slow progress of the Indian economy during the first four decades of independence is that the Indian entrepreneur has been shy. But as the economy has progressed, there has been an upsurge in entrepreneurs emerging in all fields — but more needs to be done.