Role of entrepreneur in economic growth as an innovator? and what role does it play in economic growth as an innovator? Then we will provide information about it for you. Because many of our users always have questions stuck on their tongue. First, we will tell you about the 3 roles of the entrepreneur and after that, we will tell its characteristics.
But friends, you will find information about it on Google. But we thought that all the users of our website should also get information through this website. Read and understand this article completely. I will try my best to answer your question easily in this article. Now we will move on by explaining 3 entrepreneur roles.
Role of entrepreneur
In modern production as an innovator, his status as an entrepreneur is like a director of a play. And modern economic development is closely linked with production. And modern production is highly complex. The entrepreneur directs the production. So that he should do whatever is necessary for his success. We will provide you with at least three sections of their role in modern economic development after this article. Which you have to understand.
First- Role of Entrepreneur: As an innovator, the entrepreneur coordinates other factors of production. Which involves not only collecting factors, nor, but it also has to be seen. That the best combination of factors is provided for the production process. Coordination involves the selection of the right kind of factors, the employment of each factor in the right amount, the use of the best technical equipment, the division of struggle-and the reduction of waste (garbage), etc. Now we move on to the next (Second section) Please continue teaching the article. 🙂
Second- Role of Entrepreneur: The entrepreneur takes risks as an innovator. As in Ho are’s view, and it is the most important job of an entrepreneur. And the amount of profit he receives is directly proportional to his risks. As such the risks are usually based on the expectation of demand. Knight has gone one step ahead as an innovator. In his opinion, there are two types of risk (A) – insurable and second (B) – considered non-insurable. And this is called non-insurable risk by the term “uncertainty”. In his view, bearing uncertainty is the primary function of an entrepreneur which enables him to make a profit. And this ceremony has assumed great importance with the increasing complexities of modern production. Now we move on to the next (Third section) Please continue teaching the article. 🙂
Third- Role of Entrepreneur: Finally, entrepreneurs innovate as an innovator. Which is different from innovation. And the invention is the work of scientists. And Entrepreneur Innovation refers to the commercial application of an invention. For example, as an innovator, the entrepreneur plays the role of a pioneer and an industrial leader. As it is believed by Joseph Schumpeter and his followers. That the entrepreneur is the one who innovates and the innovation makes the entrepreneur a hero in the drama of economic development.
Finally, as an innovator, the view expressed by the modem economist Schumpeter has been agreed upon. As the process of economic development is characterized by the presence of unsatisfactory turbulence, economists, therefore, agree with the view that this disturbance comes in the form of innovation. An entrepreneur can do any of the following five options of innovation. We will further tell you which 5 options have been agreed with the view expressed by economist Schumpeter. Please continue teaching the article. 🙂
A-The introduction of a new good or a new quality of a good.
B-The conquest of a new source of supply of raw materials.
C-The carrying out of a new organisation of any industry.
D-The introduction of a new method of production.
E-The opening of a new market
Economic growth as an innovator:
Now we will know what the economic growth as an innovator is – what happens we will tell you as an extension of a small article. Please continue teaching the article. 🙂 As we have come to know how the Entrepreneur rolls at the beginning of this article, innovation activity as an innovator increases the productive capacity of the economy for which results in more production and income. Schumpeter separates economic growth from economic growth in growing productivity.
This leads to economic growth when more resources are available in the economy. But economic development is a completely different phenomenon. This occurs when production increases as a result of entrepreneurial activity. Therefore, Schumpeter defines growth as “moving out of new combinations”. And in this article M.C. Garg has mentioned the sari thing while mentioning it.
As an innovator, the entrepreneur is the central figure in the development process. Which introduces a new combination of factors. And whereby the resources of the economy along the production lines are analytics- channelized. It is not the manufacturer, who chooses an option over any of the available methods for the latter, entrepreneurs continue to introduce new and innovative methods of production.
An entrepreneur who is not a capitalist does not provide money for capitalist production. The entrepreneur who splits the money for new production. In this way, the entrepreneur is always ready to make the economic system dynamic. and thus, entrepreneurial activity stimulates progress and becomes the mainstay of economic development.
Business management expert and Leadership Consultant and Business Coach, who writes her blog, Jay’s Trends, focused on helping small business owners understand trends in Business management. Other posts by Jayprakash Prajapati»