Question

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Proposition: "Entrepreneurship" is a meaningless phrase of no importance for economics. Support or attack this proposition

Answer 1

If we define entrepreneurship in the economical term then it can be said as creation or extraction of value or we can say the entrepreneur may infuse some value to an existing or new product by receiving and locating the necessary skills and resources efficiently and effectively. Here value implies usefulness. So if we define entrepreneurship in terms of value it can be said as the dynamic process of creating incremental wealth by individual who assumes the major risks in terms of equity, time or carrier commitment, or provide value for some product or service.

Entrepreneurship can be said as a friend of the economy who is always there to take it away from problems like recession,dipression, loss of job, employment creation, local manufacturing, resource utilization, innovation, development, etc. It is very crucial to the economy as it helps to improve the standard of living of the people, the creation of wealth not only for the entrepreneur but the related business too. Why I am saying it is important to economics because economics main concern is production, consumption, and transfer of wealth and entrepreneurship is the vehicle of all the three-factor.It is always said as a national asset that needs to be cultivated, motivated, remunerated to the possible extent. Great entrepreneurs have the ability to change the way we think, the way we live. Let's talk about the Tata Group. What would have been the scenario if the great entrepreneur would have not risen? If entrepreneurship is not important for the economy so no TATA, BIRLA could have mattered but these are the ventures that made a mark on the world bank and improved the economical structure of their home country.

Entrepreneurial ventures add to the wealth of the economy. Established business grows in a shield and may cross certain limits but new ventures come up with much better and improved products, services, or technology that enable a new development in the market and creation of wealt in the economy. Thus the transfer of wealth becomes smooth and easy. On the other hand there is an increase in job opportunity and higher earnings which together contribute to better national income and tax revenue, along with this entrepreneurship helps to develop community and locals.

The relationship between the economy and entrepreneurship is very crucial. Countries with more entrepreneurs have better economic conditions.Understanding the benefits and drawbacks helps in the development of a balanced economy.