Role of Entrepreneurship in Economic Development With special focus on necessity entrepreneurship and opportunity entrepreneurship

Entrepreneurs are people who create new businesses, which help create new jobs for people. They help in intensifying competition, with the help of technology they master in increasing productivity and thus contributing in the development of the country, followed by economic growth. So it can be said that entrepreneurship is good for economic growth .The paper will justify how far this stands true in reality. Now if the entrepreneurship allows informal self employment which means without formally creating new business then it could be assumed that high levels of entrepreneurship would correlate with sluggish economic growth and sheathing development. Study further mentions findings of a survey known as “Global Entrepreneurship Monitor (GEM) project” which is related to understand how different types of entrepreneurship affect development of the country. The term “necessity entrepreneurship,” is in the paper, which means to become an entrepreneur because you have no better option. It is different from “opportunity entrepreneurship”, which is an active choice to start a new enterprise based on the perception that an unexploited or underexploited business opportunity exists. We have collected secondary data available and literature previously studied. The data analyzed reveals that effects of necessity and opportunity entrepreneurship on economic growth and development vary greatly. The study has been concluded that necessity entrepreneurship bears no effect on economic development and opportunity entrepreneurship has a positive and significant effect.