Role Of Entrepreneurship In National Income Development

There are some roles in which entrepreneurs contribute to the national income development of the nation in which he or she finds himself/herself. These roles will be are discussed after the cut.

1. Employment generation: all entrepreneurs are employer of labour, thereby they provide employment to the people.

2. Mobilization of local raw materials: Entrepreneurs add value to the process of production. The process of inputs (raw-materials) to output (final products). Each successive stage add value to the product. The bye-product of a given production process can serve as the raw materials/intermediate material for another business enterprise.

3. Diversification of business: Entrepreneurship allows for the classification of enterprise opportunities. This create variety of products and services. New use of existing products have been made possible through product modification. In other words, someone has a higher latitude of products from which to select for maximum utility.

4. Promotion of technology: By being creative, entrepreneurs are able to contribute to the utilization of technology. For example department of block making, ice cream, chalk, cold room etc.

5.Capital formation: Entrepreneurs create wealth by paying salaries and wages, encouragement of good banking profits is to have promotion of an entrepreneurial culture.

6. Increase productivity level: This is directly linked to wealth creation, the imitative effect f entrepreneurial activities is to raise the level of productivity in the economy.

7. Variety of goods and services for the convenience to the consumers: Entrepreneurs have been able to create variety or products and services. New uses of existing products have been made possible through product modifications. Hence the consumers wide range of products from which to select from maximum utility.

8. Increasing the gross domestic product: The fact that more goods and services are produced implies an increase in national income. This is one of the reasons why every successive government in Nigeria pursues the goal of industrial development to stimulate growth.