Riaz Academy
Question 6: How does an entrepreneur
stimulate the economy?
ANSWER:
1-Investment – The entrepreneur has to invest in what is
required for the economy. Economic progress will much depend upon his or her
contributions. Any entrepreneur will invest in products and services which the
people need. His or investment will ensure a better life for the people. More
goods and services will be at their disposal.
2. Employment – An entrepreneur by setting up various
businesses and establishments is generating employment in the economy. People
need jobs. This is a major contribution that an employer can make to provide
income to an employee who can meet his or her needs.
3. Diversity in products and services – An entrepreneur can provide various types
of goods and services to the consumer. The consumer can by these products easily
and he are she would like to discuss their demand with the entrepreneur. entrepreneur would like to provide and
produce their demand for enjoying more profit.
4-International trade – An entrepreneur promotes international
trade by selling his or her products abroad. Any entrepreneur would like a
wider market. If there are more consumers to purchase his or her products, the
higher his profits.
5-Contributes to gross national product –
An entrepreneur makes much contribution
to the national income and to the economy as whole. The GNP of the country is
calculated based upon the total number of products and services available in a
respective country. The more products and services available the higher the
GNP. It indicates the economic prosperity of the country.
Conclusion:
The entrepreneur is essential for the
economic development of a country. The progress of a country will depend upon
his skill and talent as well as hard work to deliver necessary goods and
services required by the citizens of his or her country.