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Role of Enterpreneurship in Economic Development Essay Sample

Role of Enterpreneurship in Economic Development Pages
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The entrepreneur who is a business leader looks for ideas and puts them into effect in fostering economic growth and development. Entrepreneurship is one of the most important input in the economic development of a country. The entrepreneur acts as a trigger head to give spark to economic activities by his entrepreneurial decisions. He plays a pivotal role not only in the development of industrial sector of a country but also in the development of farm and service sector. The major roles played by an entrepreneur in the economic development of an economy is discussed in a systematic and orderly manner as follows.Entrepreneurs promote capital formation by mobilising the idle savings of public. They employ their own as well as borrowed resources for setting up their enterprises. Such type of entrepreneurial activities lead to value addition and creation of wealth, which is very essential for the industrial and economic development of the country.

Entrepreneurs provide immediate large-scale employment to the unemployed which is a chronic problem of underdeveloped nations. With the setting up.of more and more units by entrepreneurs, both on small and large-scale numerous job opportunities are created for others. As time passes, these enterprises grow, providing direct and indirect employment opportunities to many more. In this way, entrepreneurs play an effective role in reducing the problem of unemployment in the country which in turn clears the path towards economic development of the nation.Entrepreneurs help to remove regional disparities through setting up of industries in less developed and backward areas.Economic power is the natural outcome of industrial and business activity.

It stimulates equitable redistribution of wealth and income in the interest of the country to more people and geographic areas, thus giving benefit to larger sections of the society.Increase in the standard of living of the people is a characteristic feature of economic development of the country.Entrepreneurs help in promoting a country’s export-trade, which is an important ingredient of economic development.Entrepreneurs like to work in an environment of change and try to maximise profits by innovation. Entrepreneurs act as catalytic agent for change which results in chain reaction. CASE STUDY:

Vijay Mallya (born on 18 December 1955 in Kolkata, India) is an industrialist and a second time member of India’s parliament. He is the chairman of the UB Group – one of India’s largest conglomerates with diverse interests in brewing, distilling, aviation, pharmaceuticals, real estate, engineering, fertilizers, biotechnology and information technology. He is the son of industrialist Vittal Mallya. He took over as the chairman of the company at the age of 28 after his father’s sudden demise in 1983. Mallya attended La Martiniere for Boys school in Kolkata (West Bengal), where he was appointed House Captain (Hastings house) in his final year. He went up to St. Xavier’s College, Kolkata, from which he graduated with a Bachelors of Commerce degree. While in college, Mallya was interning in his family businesses. After he graduated, he interned at the American part of Hoechst in the United States.

At the time of his father’s death, Mallya was unanimously elected Chairman of United Breweries. As part of his modernisation bid, he consolidated the various companies under one umbrella group called the “UB Group”, spun off non-core and loss-making businesses and focused on the core business of beverage alcohol. Kingfisher beer controls more than 50 per cent market share of India’s beer market. The beer is available in 52 countries outside India and leads the way among Indian beers in the international market. United Spirits Ltd, the flagship of the UB Group, has achieved the historic milestone of selling 114 million cases, becoming the largest spirits company in the world by volume. Kingfisher Airlines, established in 2003, has been unable to pay salaries to its employees for the past several months and is on the verge of going bankrupt.

Now the airlines has officially been asked to vacate premises and received eviction notices for defaulting on rent payments on a Mumbai property since November 2011. Mallya is the chairman of public companies both in India as well as in the USA. He has been the chairman of Aventis Pharma India (previously Hoechst) as well as chairman of Bayer Crop Science in India for more than 20 years, in addition to being chairman of several other corporations. Mallya was elected to the Rajya Sabha – Upper House of India’s Federal parliament in both 2002 and 2010 as an independent candidate from his home state of Karnataka.

Mallya has bought some items at auctions that have substantial value in the history of India. In 2004, he bought the sword of Tipu Sultan at an auction in London, and brought it back to India. In March 2009, Mallya bought five personal belongings of Mahatma Gandhi (his iconic eyeglasses, a pocket watch, leather sandals he had made by hand, and a plate and bowl from which he had eaten his last meal) for US$1.8 million in a New York auction that had caused an uproar in India; the government of India had tried and failed to prevent the sale. Mallya has received several professional awards both in India and overseas.

He was conferred an honorary degree of Doctorate of Philosophy in Business Administration, by theSouthern California University for Professional Studies of Santa Ana, California (a correspondence school since renamed to California Southern University, and not to be confused with theUniversity of Southern California or the University of California, Irvine) in 1997. In 2010 he was awarded the Entrepreneur of the Year award at The Asian Awards. He has also been nominated as a “Global Leader for Tomorrow” by the World Economic Forum] He has also received France’s highest civilian award – the Legion of Honour.

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