INTRODUCTION
The primary goal of any developing society is to achieve development. Economic development is the process of transformation of an economy towards a modern, technologically advanced economy based on services and manufacturing. This process does not only involve quality changes to the nature of an economy, but also in terms of quantitative changes of the productivity and output per person. If these qualitative and quantitative changes result in improvements in human welfare, it is seen as economic development. For example, Nigeria, through "vision 2020", intends to actualize her dream of becoming one of the twenty most developed economies in the world in the year 2020. I really hope the Nigerian government and leaders have not forgotten that vision. Therefore, the economy is expected to grow both in qualitative and quantitative dimension. Entrepreneurship could make a significant contribution to realizing that dream. Thus, entrepreneurship has been recognized all over the world as an important tool for accelerating the development process of nations.
WHAT AM I SAYING?
As stated in the previous series on entrepreneurship, industrial and economic development is not only nurtured by few large scale industries but also by numerous small scale enterprises, which have the capacity to provide employment and aid growth in an unprecedented manner. It will be wrong to believe that entrepreneurship in developing countries is only a transitional phase in development and that entrepreneurship development is only temporary or a "second-best" alternative. This seems to be based on the assumption that if a country moves from a traditional to a modern economy, it will have no more need or place for entrepreneurs or small-scale enterprises, that's not true; in fact, entrepreneurship is the driving force of large scale industries. Experiences of the most industrialized advanced countries shows that while some enterprises start small and grow into large establishments in terms of capital, output and employment, small-scale enterprises continue to constitute a large and important sector of their industrial structure.
LISTEN
In the United States, small establishments have a predominant position. From study, there are approximately 23 million small-scale businesses in the United States. These altogether employ more than 50% of the private sector workforce and generates more than half of the nation's gross domestic product (GDP). In the European Union, SME's are seen as largely essential for European employment. From study, Each year, one million SME's are set up in the European Union. SME's account for 99.8% of all companies and 65% of business turnover in European Union.
WHAT THEN ARE THE ROLES OF AN ENTREPRENEURSHIP?
In summary, entrepreneurship is important for economic development; it is seen to create jobs, ease fiscal burden, and provides competition. Essentially however, the role of entrepreneurship in a developing society will be given as follows:
- Generates Employment:
It creates jobs through the formation of new enterprises especially small and medium-scale enterprises. Unemployment and underemployment are the most fundamental economic issue confronting developing countries and entrepreneurship remains the most important tool for tackling them. Entrepreneurs provide jobs for themselves and others. In Nigeria, for example, entrepreneurship has encouraged self-employment for many youths. The spirit of successful entrepreneurship has taken over the minds of entrepreneurial Nigerians, who believe in themselves and in the goal of self-employment, instead of relying on the almost non-existent government jobs. A lot of small retail shops, cottage industries, restaurants, poultry farms, and telecommunication shops have been established and managed by Nigerians who would have been unemployed.
- Increases Productivity Through Innovation
Entrepreneurs have the potential to raise productivity through various forms of innovation. The resourcefulness and ingenuity of entrepreneurs have generated new industries and contributed a great many innovative ideas and technological breakthroughs to societies. Through innovation and creativity, entrepreneurs are transforming existing business sectors, and creating new sectors. They are helping to bring about new goods and services and supplying the needs of large enterprises, which have to rely on their operations for business success.
- Facilitates The Adaptation Of Technology
Entrepreneurs provide opportunities for developing and adapting appropriate technological approaches and provide aground for skilled, unskilled and semi-skilled workers.
- Ensures Increased Resource Utilization
Entrepreneurs harness resources that might otherwise remain idle and put them into productive use. They contribute to the mobilization of domestic savings and utilization of local resources, including human resources. They also serve as good agents for disposal of industrial products and some services. They also promote the development of indigenous manpower as well as increase local participation in the manufacturing sector.
- Stimulation Of Growth In Those Sectors Which Supplies It With Inputs
Entrepreneurship stimulates growth in it's supply market. The more small-scale entrepreneurs that exist in the 'downstream,' of a particular sector, the greater the market, hence, the greater the potential for increased capacity utilization or expansion.
- Encourages And Sustains Economic Dynamism That Enables An Economy To Adjust Successfully In A Rapidly Changing Global Economy
Because of the entrepreneurial nature, small-scale entrepreneurial ventures are usually flexible and capable of responding swiftly to changes in global economy. Thus, they have accounted for a large percentage of all businesses and a favorable percentage of Gross National Product of many developed and developing countries.
- Enables Individual To Use Their Potentials And Energies To Create Wealth, Independence And Status For Themselves In Society
Successful business people in Nigeria like the Aliko Dangote, the Ibrus, Mike Adenuga, Iyayi, and the Orji Kalu started as SMEs, before their various businesses became conglomerates. It uplifts the dignity of labour - people deriving joy in working for themselves and seeing their businesses grow and mature to conglomerates and deriving joy in being a source of employment to others.
The list above is not in any way exhaustive. For example, entrepreneurship checks the effect of polarization by a planned and systematic development of rural areas. The much talked about urban migration is reduced by the introduction of small-scale enterprises in rural areas.
CONCLUSION
The developed economies of the world are evidences of the role entrepreneurship plays in economic development. There is a strong positive relationship between the level of entrepreneurial activity in a country and economic growth. If the country must progress in its structural transformation from low income, primary-sector based society into a high income and technology-based society, it must embrace and develop entrepreneurship.
