Rajasthan Board RBSE Class 12 Business Studies Chapter 11 Entrepreneurship: Introduction, Nature, Importance and Problems
RBSE Class 12 Business Studies Chapter 11 Textbook Exercise
RBSE Class 12 Business Studies Chapter 11 Very Short Answer Type Questions
Question 1.
Write down the meaning of entrepreneurship?
Answer:
Entrepreneurship is an activity of establishing an enterprise in which there is an element of risk involved.
Question 2.
Quote any one definition of an entrepreneur?
Answer:
According to Prof. Musselman and Jackson :
“Entrepreneurship is the investment and risking of time, money and efforts to start a business and take it successful.
Question 3.
Who is an entrepreneur?
Answer:
Individual who bear risk in starting and managing all enterprise is known as an entrepreneur.
Question 4.
Write down the meaning of risk.
Answer:
Commercial or business uncertainties in business due to which loss could occur is known as risk.
Question 5.
Define the term innovation?
Answer:
In general terms, innovation means new design in products, new production technique or new distribution technique. In brief, innovation means bringing change in present system.
RBSE Class 12 Business Studies Chapter 11 Short Answer Type Questions
Question 1.
Explain the Concept of Entrepreneurship in Detail.
Answer:
Entrepreneurship is the process of searching and exploiting the profitable opportunities, creating new utilities and values by transforming resources and by bearing risk of innovative decision so that society’s expectations and needs can be fulfilled and wealth can be created to mobilize economic growth. In other words, entrepreneurship is an activity of establishing an enterprise with the element of risk present in functioning or running it.
In words of Prof. Udai Pareek and Manohar Nadkarni:
“Entrepreneurship refers to the general trend of setting up new enterprises in society.”
In words of Peter Kilby :
“Entrepreneurship involves a wide range of activities which includes perception of market opportunity, comparing and managing the factors of production and introduction of new production technique and products.”
Question 2.
Enlist the characteristics of entrepreneurship.
Answer:
Following are the characteristics of entrepreneurship :
- Ability to innovate
- Economic activity
- Risk bearing capacity
- Pursuit of opportunities
- Organisation creation
- Result of high ambition
- Based on principles, not on intuition
- Professional Activity
- Entrepreneurship is a behaviour not a personality trait.
- Result of change.
Question 3.
Elucidate any five traits of a successful entrepreneur.
Answer:
Following are the five traits of a successful entrepreneur :
- Hardworking :
An entrepreneur should be hardworking person having positive attitude towards work. - Self Confidence :
It is the mother of success. An entrepreneur can easily overcome difficulties and odd situations with their confidence. - Cooperative :
Entrepreneurs should be cooperative in nature. They should cooperate with all the concerned business components such as employees, suppliers, customers, lenders and even with their competitors. - Loyal :
An entrepreneur is required to be loyal towards his investors, suppliers and government. He should not involve in black marketing, creating artificial shortage, profiteering, tax evasion aid should be loyal to society, government and nation. - Optimist :
It is very essential for the entrepreneur to be an optimist because he has to continuously face risk and uncertainties, trial & error, serious setbacks. Entrepreneur by optimistic approach can overcome obstacles and setbacks.
Question 4.
Explain the physical and mental qualities expected in an entrepreneur.
Answer:
Following are the physical and mental qualities of an entrepreneur:
- Sound health and working capacity :
An entrepreneur must have sound health to put a greater amount of physical and mental effort in his work. A person with good health can be ready to achieve the goals with full potential. - Imaginative :
Entrepreneur has to do various innovative tasks right from the setting up of the business to its successful operation which is only possible through his imagination. According to Alpmas : “The ambition of that person is fulfilled who loves to work. The ambitions of a person who only imagines are never fulfilled.” - Foresightedness :
Successful entrepreneurs have the ability to comprehend complex situations. They are foresighted and aware of important details. They continuously forecast the change in the business environment and review all possibilities to achieve objects. - Ability to make decisions :
An entrepreneur should have the ability to make quick decisions at the right time. He must be able to analyse the existing circumstances and opportunities before making relevant decisions.
Question 5.
Explain the social qualities of an entrepreneur.
Answer:
Following are the social qualities of an entrepreneur :
- Sociable :
Sociability of an entrepreneur is very important for his success. He should maintain cordial and amicable relations with the people in his contact. - Cooperative :
He should be cooperative in nature. He should cooperate with the owners, employees, lenders, suppliers, customers and even with his competitors. - Humanity :
Entrepreneurs must show their compassionate, generous, kind considerate behaviour towards their employees. - Respectful :
It is rightly said that respect given is respect earned. Therefore, a successful entrepreneur should give respect to all the persons coming in his contact.
Question 6.
State the professional traits of an entrepreneur.
Answer:
Professional traits are essential in launching and developing a new venture. According to John Case, “Entrepreneurship is not a mystery, it is a practical discipline. Entrepreneurship is not a genetic trait, it is a skill that most people learn.”
Following traits are expected in an entrepreneur :
- Business aptitude
- Ability to make decisions
- Planning ability
- Organising ability
- Self motivation
- Goal setting
- Time management
- Technical knowledge
- Awareness of social responsibility
- Persistent problem solving.
RBSE Class 12 Business Studies Chapter 11 Long Answer Type Questions
Question 1.
What do you mean by entrepreneurship ? Explain its features.
Answer:
In general, entrepreneurship is the process of searching and exploiting the profitable opportunities, creating new utilities and values by transforming resources and by bearing risks of innovative decisions so that social expectations and needs can be fulfilled and wealth can be created to mobilize economic growth. According to Peter Kilby, “Entrepreneurship involves a wide range of activities which includes perception of market opportunity, coordinating and managing the factors of production and introduction of the production techniques and products.”
According to Franklin Lindsay :
“Entrepreneurship is anticipating the future requirements of society and successfully meeting those needs with new, creative new imaginative combinations of resources.
Characteristics of Entrepreneurship :
- Innovation :
It involves innovation of something new and better. It includes new technique, new products or new way of distribution. According to Peter. F. Ducker, “Innovation is the specific instrument of entrepreneurship. Entrepreneur is a change agent.” - Economic activity :
Entrepreneurship is primarily a wealth-producing task. It involves putting the resources to productive use. It creates and operates an enterprise. It is basically concerned with opening a new business venture and running it with an objective to earn profits. - Risk-bearing capacity :
An entrepreneur bears risk of setting up and operating a new enterprise, offering new products in market, determining prices in market, uncertainties, risk of investing his time, effort and wealth. - A process of searching opportunities :
“Entrepreneurship is about pursuing environment trends and changes that no one else has seen or paid attention to. It precludes the awareness of opportunities that exist in everyday life. - Organisational creation :
Entrepreneurship is a business – oriented activity. It reflects the business and enterprising nature of a person. In encourages people to start business. - Result of high achievements :
Entrepreneurship is said to be the need and motive of high achievers. For fulfilling their ambition of higher achievements, they work continuously. - Professional activity :
In todays competitive age, entrepreneurship is adopted as a profession like engineering or law. Any individual can became an entrepreneur by taking proper knowledge and training in different management institutes. - Entrepreneurship is a behaviour :
Entrepreneurship is not a born personality trait, but it emerges as an art of making risk – bearing decision and enterprising behaviour of a person. In words of P. F. Ducker, “Entrepreneurship is not a science and not an art. It is a behaviour.”
Question 2.
Explain the role and importance of entrepreneurship?
Answer:
Entrepreneurship is the basic pillar of economic and industrial development of a country. Entrepreneurs by setting up new enterprises discover new markets and offer innovative products. They fulfill the wants and needs of people and improve their standard of living.
According to Bolinger, “Creating of new business venture is the key for technical and economic development in modern market-based economies. Through entrepreneurship, people can lead a better, long and more prosperous life.
Importance of entrepreneurship is given below :
- Economic development of nation :
Entrepreneurship is the basic pillar of economic development of any country. Entrepreneur creates employment opportunities in the country by making most productive use of resources. It contributes to national income which in turn, strengthens the rate of capital formation and leads to country’s rapid economic growth and development. - Helps in developing new products and techniques :
By entrepreneurship, new products and techniques are developed, transactions, utilities and markets are created that contribute some value to a community and marketplace. Entrepreneurs keep innovating something new and better. - Creation of employment opportunity :
Entrepreneurship involves exploring new opportunities, creating new ventures, new jobs, new tastes, promoting innovation, introduction of something new and better which automatically helps in creating job opportunities. - Opportunities to exploit full human potential :
Entrepreneurs use their creative efforts, vision and courage to make their business successful. For growth of business they work with full physical, mental and intellectual capacity. In this way they make possible the full exploitation of human potential. - Promotes capital formation :
Entrepreneurship is an effort to mobilise the idle funds for the establishment of new venture for their expansion and growth. An entrepreneur invests his own savings and savings from public through shares and debentures as capital to start an enterprise and for its smooth running. - Balanced economic development :
Entrepreneurs help to remove regional disparities through setting up of industries and business in less developed areas and backward areas. Growth of industries and business in these areas leads to a large number of public benefits like road transport, economic and school infrastructures. According to Prof. Nurksey, “An entrepreneur paves the way for economic development.” - Encourages research and investigation :
Entrepreneur emphasizes novelty. This can be related to product or technique of marketing. To maintain their innovation and inventions, entrepreneurs have to continuously do research and investigation. - Helps in social change :
Entrepreneurs with their unique vision, leadership and offerings of new goods and services, can create many social changes and can reduce dependence - on obsolete systems and technologies. They can solve social problems like unemployment by creating jobs. They increase per capital income which in turn increases the standard of living.
Question 3.
Discuss the required qualities of an entrepreneur.
Answer:
Experts have different views on qualities of an entrepreneur. Many experts and economists have classified the qualities on the basis of physical & mental qualities, social and moral qualities and professional qualities. Following are the qualities of an entrepreneur on the basis of above views :
- Effective personality :
The personality of an entrepreneur should be pleasant, impressive and attractive. He should be sensitive, considerate, resourceful and have the patience, and have the ability to influence others. - Laborious :
An entrepreneur should be a hardworking person having a positive attitude towards work. He should be driven by the desire to excel through hard work. To maintain position in the market, entrepreneurs need to work very hard because hard work is the key to success. - Cooperative :
Entrepreneur should cooperate with the owner, employees, lender, suppliers, customers and even with his competitors. He should have the ability to accept his mistakes and faults and to compromise with others. - Loyal :
An enterepreneur is required to be loyal not only in ordinary circumstances but also in special situations towards his investors, companies, suppliers, governments. He should not involve in black marketing, creating artificial shortage, profiteering, fax evasion and be loyal to stakeholders, society and nation. - Humanity :
Entrepreneurs must show their compassionate, generous, kind, considerate behaviour towards their employees. He should behave with feeling of affection, sympathy, have cordial and harmonious relations with his subordinates and members of the enterprise. This reduces labour-turnover ratio, brings stability in competent and talented personal. - Sound health and stamina :
An entrepreneur must have sound health to put greater amount of physical and mental effort in his work. A person with good health can be ready to achieve the goals with full potential. - Imaginative :
Imagination power is also an essential asset of an entrepreneur. An entrepreneur has to perform various innovative tasks right from the setting up of business to its successful operation. - Foresightedness :
Successful entrepreneurs have the ability to comprehend complex situations. They are foresighted and aware of important details. They continuously forecast the changes in the business environment and review all possibilities to achieve objectives. - Decision making :
An entrepreneur should have the ability to make quick and rational decisions at the right time. He must be able to analyse the existing circumstances and opportunities before making relevant decision. - Optimist :
Entrepreneur has to continuously face risk and uncertainties, trial and error, serious setbacks or disappointment which are an integral part of their learning process. Entrepreneur by deep commitment, perseverance and optimistic approach can overcome such obstacles and setbacks.
RBSE Class 12 Business Studies Chapter 11 Additional Questions
RBSE Class 12 Business Studies Chapter 11 Objective Type Questions
Question 1.
Entrepreneurship is a/an:
(a) Market
(b) Fair
(c) Business
(d) None of these
Answer:
(c) Business
Question 2.
Entrepreneur is
(a) Businessman
(b) One who establishes business
(c) Both a & b
(d) None of these
Answer:
(b) One who establishes business
Question 3.
Entrepreneurship involves
(a) Trying hard
(b) Giving Credit
(c) Commercial activities
(d) All of these
Answer:
(c) Commercial activities
Question 4.
Entrepreneurship risk is
(a) certainty
(b) Commercial uncertainty
(c) continuity
(d) None of these
Answer:
(b) Commercial uncertainty
Question 5.
“Entrepreneurship is an innovative function. It is leadership rather than ownership.” This was said by:
(a) Joseph A. Schumpter
(b) Peter Kilby
(c) Howard Johnson
(d) Franklin Lindsay
Answer:
(a) Joseph A. Schumpter
Question 6.
Entrepreneurship is:
(a) Innovative activity
(b) Searching for opportunities
(c) Professional activity
(d) All of these
Answer:
(d) All of these
Question 7.
“Entrepreneurship is not a science nor an art, it is a behaviour.” This was said by :
(a) Marshall K
(b) Deucler
(c) Glairman
(d) None of these
Answer:
(b) Deucler
Question 8.
Entrepreneurship is important in :
(a) Serving as pillar of economic development of nation
(b) Assisting in establishing new enterprise
(c) Creation of employment opportunities
(d) All of these
Answer:
(d) All of these
Question 9.
“An Entrepreneur paves the way of economic development.” This is said by:
(a) Prof. Nurksey
(b) Roger Nuskat
(c). Peter F. Ducker
(d) None of these
Answer:
(a) Prof. Nurksey
Question 10.
According to Me Clelland, what are the qualities in a successful entrepreneur ?
(a) Extraordinary creativity
(b) Ability of bearing risk
(c) Curiosity to achieve success
(d) All of these
Answer:
(d) All of these
RBSE Class 12 Business Studies Chapter 11 Very Short Answer Questions
Question 1.
What is the role of an entrepreneur in economic development of nation?
Answer:
Entrepreneurs utilize the nation’s resources in the best possible way and establish the new enterprises for growth and prosperity.
Question 2.
Generally which entrepreneurs are the role models of today’s youngsters?
Answer:
Today’s youngster’s role models are Bill Gates, Mukesh Ambani, Mark Zuckerberg JRD Tata, Kumar Mangalam Birla, etc.
Question 3.
In a survey made by Opinion Research Council of America, how many people of age group between 18-24 may wish to start their own business?
Answer:
58% percent youngsters.
Question 4.
78% influential Americans believe that only entrepreneurship will determine the trend of this century. Which organisation made the survey?
Answer:
This survey was made by Ernst and Young.
Question 5.
Give one definition related to establishment of business venture or enterprise?
Answer:
According to Prof. Musselman and Jackson, “Entrepreneurship is the investing and risking of time, money & effort to start a business and make it successful.”
Question 6.
“Entrepreneurship is the composite of three basic elements – invention, innovation and adaptation.” By whom was this said?
Answer:
Howard Johnson.
Question 7.
Give one definition related to Innovation and Leadership.
Answer:
According to Prof. Rao & Mehta, “Entrepreneurship can be described as a creative & innovative response to the environment.”
Question 8.
Name two qualities of an entrepreneurship.
Answer:
- Entrepreneurship is an innovative activity.
- Entrepreneurship is an activity to find opportunities.
Question 9.
Who said that, “Innovation is the specific instrument of entrepreneurship.”
Answer:
P. F. Ducker.
Question 10.
Name two important benefits of entrepreneurship ?
Answer:
- Assists in establishing new enterprises.
- Helps in growth & development of existing enterprises.
Question 11.
Who said that “Entrepreneurs are dedicated to goals of high achievements and do no get satisfied unless they achieve them.”
Answer:
Prof. Glarmain.
Question 12.
According to the famous economist, J. B. Say, what qualities does a successful entrepreneur posses ?
Answer:
- Decision making.
- Strong determination.
- Business knowledge.
- Supervision and administrative abilities.
Question 13.
According to James Burna what qualities does an entrepreneur possess?
Answer:
- Organisational and administrative abilities.
- Technical & business knowledge.
- Alertness towards opportunities.
- Interest in accepting changes.
- Psychological ability to bear risk.
Question 14.
Write two social and moral qualities of an entrepreneur.
Answer:
- Politeness.
- Sound character.
Question 15.
Write two physical and mental qualities of an entrepreneur?
Answer:
- Hardworking.
- Foresighted.
Question 16.
Who said “Business is a game of skills which everybody cannot play.”?
Answer:
Prof. Emerson.
Question 17.
Write two professional qualities of an entrepreneur.
Answer:
- Business aptitude.
- Ability to make decisions.
RBSE Class 12 Business Studies Chapter 11 Short Answer Type Question (SA -I)
Question 1.
Define entrepreneurship on the basis of decision making?
Answer:
According to H. N. Pathak, “Entrepreneurship involves wide range of areas on which series of decisions are required which can be broadly grouped into three categories :
- Perception of an opportunity.
- Organizing an individual unit.
- Running an industrial unit as a profitable, going and growing concern.
Question 2.
Define entrepreneurship in words of Robbins and Coulter?
Answer:
According to Robbins & Coulter, “Entrepreneurship is the process where an individual or group of individuals risk time and money in pursuit of opportunities to create value and go through innovation regardless of the resources they currently control.”
Question 3.
Why is entrepreneurship defined as a creative activity?
Answer:
Entrepreneurship is anticipating the future requirements of society & successfully meeting their needs with new, creative & imaginative combination of resources. Entrepreneurship is defined as a creative activity because, it is a composite of three basic elements, invention, innovation and, adaptation.
Question 4.
“Entrepreneurs bear the general risk.” Explain the term.
Answer:
An entrepreneur bears the risk of setting up and operating a new enterprise, offering new products in market, determining prices in market, uncertainties, risk of investing his time, and effort and wealth by putting all the efforts. He is not sure of getting profit. So it is right to say “Entrepreneur bears the general risk.”
Question 5.
Define importance of entrepreneurship according to the famous economist, Marshall.
Answer:
According to the famous economist, Marshall, “Entrepreneur is the captain of the business who is not only the bearer of risk and uncertainty but he is also a manager, foresighter, inventor of new products and builder of economic structure of the country.
Question 6.
Mention five important benefits of entrepreneurship.
Answer:
- Basis of economic development of country.
- Contribution in development and expansion of existing enterprise.
- Helps in developing new products and techniques.
- Creation of employment opportunity.
- Promotes capital formation.
Question 7.
“Entrepreneurship helps in balanced economic development of a country.” Explain?
Answer:
Entrepreneurship helps to remove regional disparities through setting up industries in less developed and backward areas. It help in growth of road transport, economic and social infrastructure in these areas. According to Prof. Nurksey, “An entrepreneur paves the way of economic development.”
Question 8.
How does entrepreneurship help in social change?
Answer:
Entrepreneurship by creating job opportunities, increases the percapita income which in turn increases the standard of living. As a result the positive changes in society can be easily made possible. They breakway from traditional thinking, create social awareness, ethical awakening, solve social problems like unemployment and help in bringing about overall social change.
Question 9.
“Entrepreneurship is a game of skill that everyone cannot play.” Explain.
Answer:
Entrepreneurship is a skilled profession. If an entrepreneur wants to succeed in business he must have professional skills and business knowledge. Entrepreneur must have business aptitude, planning ability, technical knowledge and ability to take quick decisions. Therefore, it is said “entrepreneurship is a game of skill that everyone cannot play.”
Question 10.
Why is it necessary to have professional qualities in an entrepreneur for him/her to be successful?
Answer:
It is very important for an entrepreneur to have professional qualities in an entrepreneur because it is directly related to the success of enterprise. According to Henry P. Dutton, “A person who has acquired the knowledge of business organisation, administration, economic management, accounting, art of leadership and has learned the principles of sale purchase will achieve success in business.”
RBSE Class 12 Business Studies Chapter 11 Short Answer Type Question (SA – II)
Question 1.
Explain the role of entrepreneur in the economic development of any country?
Answer:
Entrepreneurs play a major role in the economic development of any country. They make the optimum utilization of scarce resources for the best advantage of a nation. They bear the risk of utilizing the resources of country and through their capital formation create wealth in the country. In today’s world entrepreneurs are becoming the role models of youngsters. Bill Gates, Mukesh Ambani, Mark Zuckerberg, Jeff Bezos, JRD Tata are the inspiration for youngsters. That is why in the survey of Opinion Research Council of America, 58% of the youth of the age group 18-24 wish to start their own business.
Question 2.
Comment on entrepreneurship development in India ?
Answer:
The development of entrepreneurship in India is taking place at a rapid pace. According to 2016 Global Real Development Index (GRDI) which ranks top 30 developing countries, India received the second ranking. This indicates that Indian youth is taking interest in setting up their own enterprise. Adequate infrastructural facilities are available in India for development of entrepreneurship. Government is giving exemption and concessions, subsidies, in government control and policies to develop entrepreneurship. For new enterprises tax free plans are made, teaching and training facilities are developed. All this indicates the strong possibilities for the development of entrepreneurship in India.
Question 3.
Explain the role & work of entrepreneur in enterprise?
Answer:
Following are the role and work of entrepreneur in an enterprise :
(I) Regulating relation development:
- Searching opportunity in the market.
- Utilisation of scarce resources.
- Purchasing the raw material.
- Making products ready for distribution and competition.
(II) Political administration:
- Managing human relations inside the enterprise.
- Managing good relations between customers & suppliers.
- Managing the bureaucracy
(III) Management Control:
- Financial management.
- Production management.
(IV) Technical knowledge:
- Establishment of new enterprises.
- Keeping the production cost low in production unit.
- Applying latest, modern production techniques.
- Bringing the new products in the market.
Question 4.
Explain: There is an element of risk in entrepreneurship?
Answer:
Entrepreneur bears the risk of setting up and operating new enterprise. He also promises to bear the risk of future uncertainties, distributes money from the sale of products or services to the landowner in the form of rent, to the moneylenders in the form of interest, wages to the workers and salary to the employees, payments to the suppliers of raw material. After making all these payments if something remains he keeps that surplus. Therefore, it is true that there is an element of risk in entrepreneurship.
Question 5.
Why is there a need for Entrepreneurship ? Explain.
Answer:
Need of Entrepreneurship: There is a need of entrepreneurship in every nation because everyone wants economic development. Developed nation need entrepreneurship to maintain their economic pace. Developing nations need entrepreneurship for their economic development. It is because of entrepreneurship that new enterprises and business ventures are established and new & innovative products and services are available for their societies. This in turn changes the standard of living and comfort for societies. Entrepreneurs with their innovation, research and courage, promote capital formation & create employment opportunities. This helps in economic development of society and nations. Therefore, entrepreneurship is essential for every nation.
Question 6.
Explain the professional qualities of an entrepreneur.
Answer:
Following are the professional qualities of an entrepreneur :
- Leadership :
Entrepreneur is the head of an organisation. He makes the policies and gives order to subordinates. He must have the qualities of making quick decisions & making the maximum utilisation of human resources. - Business ability :
Entrepreneur must have business knowledge of different phases of business. Then only he will be able to control the future uncertainties. He must have the knowledge of new techniques of production & administration. - Technical knowledge :
A successful entrepreneur must have the knowledge of latest & advanced techniques of production. He must be innovative & tech friendly by nature. - Coordinating ability :
A successful entrepreneur must have coordinating ability. Coordination is an activity in which entrepreneur directs the collective efforts of subordinates towards the organizational goals.
RBSE Class 12 Business Studies Chapter 11 Long Answer Type Questions
Question 1.
Analyse the nature of relation between entrepreneurship and economic development.
Answer:
Entrepreneurs make the optimum utilisation of scarce resources for the best advantage. They bear the risk of utilising the resources and their creativity and innovative ideas contribute to economic growth, promote capital formation due to which economic development takes place. Following are the points by which the relation between entrepreneurship and economic development can be understood :
- Helps in increasing gross domestic product (GDP) :
Increase in GDP is the base of economic development. By producing farming, manufacturing and services-related products, entrepreneurs help in capital formation. The income generated is transferred in the form of interest, wages, production cost and salary. Balance left after distribution is profit. It helps in capital formation and economic development. - Capital formation :
An entrepreneurship is an effort to mobilize the idle funds for the establishment of new ventures and for their expansion & growth. An entrepreneur invests his own savings & savings of public through shares & debentures as capital to start an enterprise and ensure its smooth running. - Creation of employment opportunities :
Entrepreneurship involves exploring new opportunities, creating new ventures, new jobs, new demands, promoting innovation, introduction of something new and better which automatically helps in creating job opportunities. - Creation of commercial opportunities :
Entrepreneur not only creates new job opportunities but also creates opportunities for the people who are connected with the business. For example, advertisement given to ad agencies by entrepreneur for his new venture. - Reforms in economic activities :
Entrepreneur, for smooth running of an enterprise gives attention to better management and skilled workforce for achieving business goals. He works for maximum utilisation of scarce resources. - Increase in economic activities :
In modern commercial age, with the help of economic reforms there is an increase in job and business opportunities. This is because of entrepreneurship. Business helps in controlling demand and supply of products and services. For example, in areas where demand is more than the supply, entrepreneurs send supply to these areas and help in increasing economic activities. - Increase in standard of living of local community :
For the development of standard of living of local community, government encourages the entrepreneur to establish small-scale industries by providing subsidy in business in remote and undeveloped areas which helps in economic development of those areas. - Encouraging research, experimenting and innovation :
Entrepreneur, with his innovative ideas and guts of establishing new entreprise, creates the markets for new products and services. Entrepreneur bears the risk of new ideas. It is not certain whether the new business will succeed. Therefore entrepreneurship is a courageous task, not meant for everyone