How Entrepreneurship Leads To Socio-Economic Development

How Entrepreneurship Leads To Socio-Economic Development

 How Entrepreneurship Leads To Socio-Economic Development

An entrepreneur may be defined as a person who is able to scan the immediate environment, generate ideas, gather resources and take action to take advantage of an opportunity. Learners need to be aware of the possibilities of being entrepreneurial in their personal lives as well as in conducting their business activities. 

Learners should understand that a variety of resources are needed to be successful in an enterprise. Entrepreneurs are experts in the use of resources such as the following both In their personal life and in business situations: money, equipment, energy, skills, knowledge and time. 

For a market-based economy to work well, efficiently and prosperously, it requires entrepreneurs - those creative men and women who can identify what the market needs and wants a-id can find an efficient way to meet the demand. Entrepreneurs make the economy system work and make life better for everyone concerned by creating new products, developing new and efficient methods, and offering lower prices through effective competition. 

The successful entrepreneur recognizes what consumers want or might want, and" produces it in a competitive manner for sale. Profit is the return to a business if demand is met effectively, and loss is what a business gets if it does riot meet this demand. The entrepreneur also makes effective decisions on how to produce efficiently in order to obtain competitive products whose prices and quality are acceptable to the customer, A socially responsible entrepreneur also makes products which meet safety, environmental and other legal requirements. 

Entrepreneurs also make decisions on how to distribute the goods and services that are produced to those customers willing and able to pay for them. Through competition, entrepreneurs are able to offer prices that influence consumers' decisions to buy. 
Entrepreneurship and Leadership Styles 
Entrepreneurs are responsible for setting goals and making plans for their business. To a great extent, the work of employees plays a large part in implementing these plans and achieving goals. Developing and maintaining morale is, therefore, an important task of the entrepreneur. 

Leadership qualities must be self-developed because these qualities vary from person to person. Knowing that you are personally responsible for your leadership ability will help you to strive to make improvements. There is no single best way to be a leader. 
Entrepreneurs are individuals who have developed their own personal styles of leadership. The following three styles of leadership are commonly used: 

The "iron fisted" or autocratic leader makes decisions and gives orders without asking-the opinion of employees; 

The "let's vote" or democratic leader gives group members a voice in decisions; 

The "hands-off" or laissez-faire leader leaves all decisions up to the group members.

Most leaders use a combination of styles, depending on the group and the situation. Leaders in the business world have two main responsibilities: 

(a) Task responsibilities, or "getting the job done", and 

(b) People responsibilities, or maintaining employee morale. 

To a great extent, leadership is an attitude which is demonstrated in the approach entrepreneurs have toward "getting the job done." A leader is usually willing to assume challenges which may involve great risks and potentially great opportunities.

A leader understands the total task to be accomplished and is able to determine new and innovative ways to accomplish the task. To maintain morale, a guideline for good leaders to follow is "treat others as you would like to be treated." Trying to view a situation through the eyes of the other people involved will help in developing a positive "you" attitude towards employees. 

A good leader achieves a balance between the following two types of responsibilities. Sometimes certain situations, such as forming a new group, call for paying attention to people more than tasks. Other situations, such as the introduction of a new procedure, will probably require more attention to tasks rather than people. Understanding leadership can help entrepreneurs become more effective leaders. 

Economic Development And Economic Growth 

Economic Development/progress is an essential component of development that is conceived of as a multi-dimensional process involving changes in structures attitudes and institutions as well as the acceleration of economic growth, reduction of inequality and eradication of absolute poverty. The basic needs desires of individuals and social groups within that system, moves away from  a condition of life widely perceived of as unsatisfactory towards a situation condition of life regarded materially and spiritually better. 

Economic growth means an expansion in real terms of national income per he Closely associated with this must be an improvement in the overall standard living of the citizens.