Entrepreneur
plays a significant role in generation of employment opportunities. As we all
know, entrepreneurship is a purposeful activity indulged in initiating,
promoting and maintaining economic activities for production and distribution
of goods and commodities, the person behind these economic activities is,
therefore, a critical factor as well as an integral component of
socio-economic transformation. The
development strategy of our country confronts two important
problems-unemployment and poverty of the masses. These problems can be
effectively minimized by activating the latent human potentials through
entrepreneurship. This leads to the creation of self-employment avenues for
large number of people.
For reduction of unemployment,
entrepreneurship in small and tiny sector industries, both in manufacturing and
service sectors, is imperatively needed. Thus, the role of entrepreneur and its
significance in generation of employment opportunities can be depicted under
the following heads.
- Establishing tiny, micro and small scale entrprises:
Role of entrepreneur in establishment the above types of enterprises
is perceived as a powerful medium to address several socio-economic issues and
the chief among them is generation of employment opportunities for millions. In
a developing economy like India, where population pressure is quite high and
job employment is limited, the role of entrepreneur is very much significant.
Entrepreneurial development gives rise to economic independence through
self-employment. Creation of tiny, micro and small enterprises by the
entrepreneurs can lead to creation of both self- employment and wage-
employment opportunities, thereby solving the problem of unemployment in the
economy.
- Giving emphasis upon village and cottage industries
Up liftment of economically backward sections of the society can be
possible if self- employment opportunities can be provided at the grass root
level. To enable these people in backward regions of the state to set up
village and cottage industries, government has implemented several antipoverty
programmes like PMRY, TRYSEM, SGSY, REGP etc, and the importance of
entrepreneurs in cottage and village industries sector has been clearly
acknowledged by Mahatma Gandhi by his policy priorities in village upliftment
including khadi and village industries in his famous constructive programme in
1922. Prior to independence, cottage industries and handicraft production
located in rural areas had occupied a distinct place in Indian economy because
of their high potential in employment generation and income creation especially
in rural and backward areas. As such, entrepreneur can play a significant role
in setting up and reviving the cottage and village industries, thereby creating
employment opportunities to a large number of people living in rural and
backward pockets of the country.
- Utilising the surplus labour force in industrial activities
India is a primary producing country. This characteristics feature
is further accentuated by seasonality
feature of the agriculture. Therefore, for a large part of the year, people
remain , more unemployed. Disguised unemployment is a chronic phenomenon in
agriculture where in more people work in
a field than actually required. So the surplus labour force is transferred and
utilized by the entrepreneur in non-farm sector activities like small tiny,
cottage and village industries which are labour intensive in nature.