3. Promotes Country's Export Trade

Entrepreneurs earn valuable foreign exchange through increased exports. They produce goods and services in large scale for the purpose earning huge amount of foreign exchange from export. This ensures economic independence and development.

2. Induces Backward and Forward Linkages

Entrepreneurs work in an environment of changing technology and try to maximise profits by innovation. This induces backward and forward linkages which stimulate the process of economic development in the country.

1. Facilitates Overall Development

Entrepreneurs act as catalytic agent for change which results in chain reaction. Once an enterprise is established, the process of industrialisation is set in motion. This unit will generate demand for various types of units required by it and there will be so many other units which require the output of this unit. This leads to overall development of an area due to increase in demand and setting up of more and more units.