The AEA is an advocate organization that leads the movement for excellence in education and is the voice of education professionals in Alabama. So they act as a stabilizing factor in the economy.The Alabama Education Association (AEA) is the largest education association in the state of Alabama. They have a high capital output ratio than other forms of business organization. Entrepreneurship usually gives a quick return on investment. True or False?Īns: The above statement is True. Q: Optimization of capital is one of the benefits of entrepreneurship. Solved Question on Benefits of Entrepreneurship Again this contributes majorly to the economic development of a country. There is another of the benefits of entrepreneurship is that they also create jobs in the market.
This pooled financial resource or capital is the basis of wealth creation in the economy.
Entrepreneurs make productive use of these savings, they mobilize them and turn them into a productive resource. They not only invest their own capital but also attract capital from the market. They are the spark that ignites the flames of economic development in a country. 4] Economic DevelopmentĮntrepreneurs play a very important role in the national economy of any country. The boom we have seen in high tech electronics, personal shopping experiences, luxury cars, and other products are all a result of this rise in our standard of living thanks to the entrepreneurs. So this results in a better standard of living for the members of the public. Even niche requirements are fulfilled by entrepreneurs. One very important factor of entrepreneurship is that they help fulfil all the customer needs and luxuries in society.Īn entrepreneur will launch products and services to meet customer requirements, even if it is not a mainstream good/service. They even learn some managerial skills along the way. They create their organizations from the ground up. So they assemble and coordinate their factors of production. And the majority of these businesses are actually single handly run by the entrepreneurs themselves. Creation of Businesses/OrganisationĮntrepreneurship is essentially a business owned entirely by one person. This really helps in the overall development of managerial capabilities in an economy. This is the crux of decision making.Īlong the way, an entrepreneur may even learn new managerial functions and techniques. So an entrepreneur weighs his options, analysis his choices and chooses the best alternative.
One such very important skill is the art of decision making.
One of the biggest and most significant benefits of entrepreneurship is that it helps in the identification and development of managerial talent.Ī successful entrepreneur has to learn a lot of skills to run his business.
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