An entrepreneur is a person who carries the risk of business and coordinates the activities of all the other factors of production.
Qualities of an Entrepreneur
- Courage and ability to tackle problems
- Ability to make quick decisions
- Obtaining business knowledge
- Efficient in identifying the skilled resource to assign work according to taste and preferences
- Ability to predict future markets and business conditions
- Efficient organizer possessing leadership qualities
- Obtaining experience
Role of in Economic Development
- Risk bearing and innovative capabilities are associated with entrepreneurship. Entrepreneurs introduce cost-reducing or demand-creating innovations in various industries, and industrial production becomes a factor. Hence, the country would become self-sufficient in the production of a variety of industrial goods of high quality to cater to the changing needs of domestic and international markets.
- Contribution towards the generation of higher employment and income opportunities. They spend a greater portion of their profits in new ventures or for productive purposes. Hence, higher investment can create more employment and income opportunities within the country
Factors that are used to carry out the process of production are called factors of production. In the modern economy, economists classified these factors into two categories. They are land and labor, as capital is created by the application of labor on the land and an entrepreneur is a human resource who performs and controls the business. Therefore, land and labor are the primary factors of production, whereas capital and the entrepreneur are the secondary factors of production.