question_answer 9)

How entrepreneurship result in increasing the spectrum and scope of economic activities?

Answer:

Development does not mean only the betterment of existing but it means the overall betterment across the geographical, sectoral and technological scope. Entrepreneurship results in diversification of economic activities by creating employment, business opportunities, stabilizing the demand and supply factors as underdeveloped countries caught in the vicious cycle on the demand as well as supply side. Thus, it helps in overcome from this situation. GDP originates from industry and services increases. Entrepreneurs through their decisions to direct from the stale sectors and invest in green field sectors bring a virtual transformation of the economy from underdeveloped to developed status. Thus, we can say entrepreneurship result in increasing the spectrum and scope of economic activities.