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opportunity more quickly than others and are not afraid to take risks and bold decisions and they work hard.
They are problem solvers with excellent communication skills.
Characteristics of entrepreneurship are as follows:
 Goal Oriented: Entrepreneurship is a purposeful activity. Each and every enterprise is launched either to
earn money or to serve the society.
 Risk Bearing: Risk is inherent and inseparable from entrepreneurship. Entrepreneurs do extraordinary
things. Those who succeed become celebrities and those who fail are ridiculed.
 Creative Response: Entrepreneurship is a creative response to sudden changes in the environment. It
involves introduction of something new and better.

 Gap Filling: An entrepreneur identifi es and fi lls the gap between what the society needs and what is
available.
 Organizational Skills: An entrepreneur brings together various factors of production such as land, labour,
captial, etc. and organizes them as an enterprise. An entrepreneur is therefore an organisation builder.
 Initiative: Entrepreneurship involves taking initiative by the entrepreneur.
 Dynamic Process: Entrepreneurship thrives on changes in environment. Those changes create opportunities
for entrepreneurs.

Role of Entrepreneurship
Persons who have good entrepreneurial characteristics must go for it because our country and our people who are
unemployed can benefi t from this opportunity. Entrepreneurship has an important role in context of developing
nation like India, which is confronted with major socio-economic problems. Here are some important roles of
an entrepreneur.
 Industrial and Economic Development: Enterpreneurs play a premium role in promoting development
of economy. They mobilize idle savings of public and use them in productive area which helps in
capital formation and leads to industrial and economic development of a country.
 Create Employment Opportunities: Unemployment is a major concern today. When an entrepreneur
comes with new business idea or start-up of a new enterprise, then it creates job opportunities. This kind
of job creation by new businesses is one of the basic goals of economic development. The Government of
India initiatives like ‘Make in India’ and ‘Startup India’ attract foreign companies and their FDI (Foreign
Direct Investment) into the Indian economy.
 Community Development: Entrepreneurship plays a vital role in infrastructure for education, training,
healthcare and other public services. It encourages educational institutions, technical training schools and
internship opportunities, that will help to build the pool of educated and skilled workers.
 Balanced Regional Growth: If an entrepreneur sets up a unit in a rural or semi-urban area, it leads to job
opportunity which in turn reduces migration from rural to urban area. This in turn leads to the development
of infrastructure and other facilities like roads, transport, health, education in that area.
 Utilization of Resources: The growth of industry in an area leads to utilization of local resources like raw
material and manpower which improves the living standard of local community. This also improves the
purchasing power of local people, thus, creating greater demand to higher industrial development.

 Greater Export: Any growing business will eventually want to export to expand their business to foreign
markets. It helps economic development since it provides access to bigger markets. For example, Infosys
by Narayan Murthy and Wipro by Azim Premji provide software solutions to countries outsides India.
 Improved Standard of Living: The entrepreneurs use highly advanced technology and latest techniques
which result in lower cost of production. This results in greater benefi ts for the customers who get better
quality products at a lower price thereby raising their living standard.
 GDP and Per Capita Income: If, country witness a economic growth, then its GDP and per capita income
also grows.
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