Explain How Entrepreneurship Leads To Import Substitution And Utilization Of Local Resources

Explain How Entrepreneurship Leads To Import Substitution And Utilization Of Local Resources

Explain How Entrepreneurship Leads To Import Substitution And Utilization Of Local Resources

Entrepreneurship trains the individual to identify, analyze and utilize opportunities through value addition to create something needed around him. The recognition of a business opportunity coupled with the ability to respond effectively is the basis for starting and maintaining successful ventures. This involves not only generating ideas or identifying opportunities, but also screening and evaluating them to determine the most viable, attractive propositions to be pursued.

A business opportunity may be defined simply as an attractive investment idea or proposition that provides the possibility of a return for the person taking the risk. Such opportunities are represented by customer requirements and lead to the provision of a product or service that creates or adds value for its buyer or end-user.
A business opportunity must fulfill, or be capable of meeting the following criteria:

  • Real demand
  • Return on investment 
  • Be competitive
  • Meet objectives
  • Availability of resources and competencies

Goods that are imported into a society must of necessity have local demands. The strength of this demand is a measure of how successful the product has been in the market. Entrepreneurs can take any locally available raw materials and work out the process for creating similar or identical products (substitutes) thus reducing the need for imports. In most cases the local substitute is much better than the imported one. The case of locally produced frozen chicken has shown that fresh local chicken have better taste and are more desirable.

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