Question

Question 3 Social entrepreneurship Explain, drawing on one actual case, how social entrepreneurs use business and entrepreneurial tools to solve social problems.

Answer 1

entrepreneur is a person one who undertakes the production/manufacturing responsibility and is the ultimate receiver of profit and loss arising due to that decision after making all the payment for cost of the production in the economy.

suppose there is an under developed economy,in which people are not even to meet the meals.there is no education facilities ,no healthcare facilities,no such financial assistance in the economy.

now suppose entrepreneur risk their capital to set up a business in the economy and as a result the following process would be initiated-

1. generation of employment in the economy- when business would be established then the unemployed labor would be provided employment and thus they would be able to fulfill there basic necessities.
2. rise in the level of income of the people in the economy-when people gets employment it leads to increase the level of income in the economy and thus there is the increase in the Multiplier in the economy due to increase MPC(marginal propensity to consume) in the economy.
3. increase in the demand of people- there would be an increase in the demand of the people.people would demand for several things and thus it would lead to enhance the development in manifold.
4. increase in national income-when the business would grow the tax revenue from this sector and income tax generated through the people would also increase.government would be able to make development expenditure and thus the economy would be developed because there would be better way of roads and transportation better education facilities,better medical facilities
5. overall economic development- with the passage of period of time there would be many firms enter for the production and people will get the better job opportunity in the market and better quality goods and services would be provided to society at reasonable and best possible price.
6. services of financial sector- financial sectors such as banks,NBFC(s) would come forward to encourage new producer to set up firms in the market.

• as we can observed that the entrepreneur plays an important role in the economy for the overall development and initiates the pump up in the economy and contribute a major part in the economy.it helps to solve the major problem concerned with social life.