Entrepreneur supplement and compliment economic growth of the economic in the following ways:

1.    Mobilization of Capital. Entrepreneur’s efforts to mobilize the capital results in motivating the investors to divert their ideal savings in the industrial enterprises. Investment of public saving in industrial sector helps the country to use financial resources for productive purposes. The growth rate of capital formation will be increased which is highly essential for rapid economic development of a country. It is in the sense that entrepreneurs grenade capital at a rapid rate and capital formation increases which is vital for the industrial development.

2.    Generation of Employment. Entrepreneurs become self-employed and self-sufficient. They do not depend on the government jobs or private jobs and directly employ themselves by starting their own enterprises. In fact, they also privet jobs to many unemployed by setting up large and small scale industrial. Thus, entrepreneurs play an important role to reduce the unemployment problem in the country and pave the way for economic development.

3.    Backward and Forward Linkages. It is the entrepreneur who initiatives change and this to maximize his profits by innovations. Setting up of an enterprise in accordance with the changing technology has several backward and forward linkages. For example, the establishment of a textile unit generates several ancillary units and expands demand for cotton, chemicals, dyes, etc.

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