1. Name at least 5 roles of entrepreneurs in society.

• They Create Jobs - Entrepreneurs start new businesses and hire new employees. They
become a job creation engine and create numerous employment opportunities.

• Raise Standards of Living - Entrepreneurship uses innovative talent, hire employees and
start a new business. The employees earn income and spend in the local economy. And
all of this creates wealth and raises the standards of living. Employees become more
efficient. The demand increases and therefore raises the income and standards of living.
• Creates Economic Growth- Entrepreneurs contribute a lot to the economy as businesses
generate wealth for the population. When entrepreneurs invest their money in the
market, leaders and investors invest their capital in new ventures to put funds at work.
Another point of view is taxes paid by businesses and income tax paid by employees.
The added income of government is spent on stimulation of the economy. It also boosts
the GDP per capita of the country and helps in achieving the economic development
goals.

• Promotes Innovation - Entrepreneurs innovate, create new products and services that
solve various problems in the society.
• Help Other Entrepreneurs-Entrepreneurs also have a passion for their businesses and
love to share their stories and learnings with aspiring innovators. The seasoned
entrepreneurs tell the mistakes they have done in their entrepreneurship journey. A
neophyte can avoid wasting time on these mistakes and perform better. Many
entrepreneurs also form local groups to discuss business related problems and hurdles in
the market and much more, which means success breeds success.

1.a Why are entrepreneurs called the “engine” of the economy?

• Because entrepreneurs are one of the highest tax payers in the country. Their taxes are
the lifeblood of the government. Taxes collected from them are used by the government to
finance basic social services that are vital to the lives of citizens and economic growth. Their
taxes use by government to attract investors from other countries, so the added income of
government is spent on stimulation of more economy purposes. It also boosts the GDP
per capita of the country and helps in achieving the economic development goals.
2. What are the rewards & risks of being an entrepreneur? Given these, will you venture
into entrepreneurship in the future? Why or why not?
 Rewards of being an entrepreneur

• Control -A major benefit of starting you own venture is that you have a large degree of
agency and control of what is happening in your company. You can decide whom you
want in your team and you set the vision for the company and make strategic decisions.

• Excitement -Building your own business can be a very exciting and highly enjoyable
process as you get to apply your skills and abilities to solve problems, make fascinating
breakthroughs and meet interesting people. Your work is dynamic, as the company
constantly needs to adapt as it is growing so you never get bored. There is no better
feeling then creating something out of nothing, and you get to work with people who
are not only your customers/suppliers, but also your friends.

• Flexibility- Because you own the company, you can decide how to organize your
schedule and when to take time off, but the truth is that entrepreneurs often have to
work very long hours, particularly in the beginning.

• Freedom-The freedom you have will also add to your life satisfaction and make you
more fulfilled. You have the freedom to choose if you want to work from home or while
you are travelling, and you can choose when you want to work.

• New Skills - Even if you have expertise in certain areas, in the beginning you have to do a bit of
everything and this way you will learn about accounting, design, marketing, public speaking,
how to delegate, how to be more creative, about sales and much more. Furthermore, you have
to learn how to fail as well as face rejection but still get back up on your feet.

• Rational Salary-Another advantage is that your salary is directly related to how much work you
put in and how many new contracts you close. Over are the days where you put in so much
more effort than your co-worker but get paid the same and you also don’t need to wait for a
raise anymore.

• Impact- You get to see the impact you make first hand as you work closely with your customers
and the problems you solve make a real difference in people’s lives. Furthermore, you create
jobs which will attract talent to your local area and also helps economic development.

Risks of being an entrepreneur

• No Steady Pay Check -If you are an entrepreneur, this means that you will often have to give
up the security of a steady salary at the end of the month. This means that if your business is not
doing so well, it can have a serious effect on your personal income.

• Sacrificing Personal Capital-A lot of times entrepreneurs have to use their own savings to get
their business off the ground until they have developed it enough to be ready for external
funding from angel investors, government grants, loans or crowdfunding campaigns. If you are
not planning to take investment or look for funding, the strain on your savings can be even
larger.

• Relying on Cash Flow-It can be a real challenge to secure enough cash flow in your
business on an ongoing basis. This is particularly true if one of your bigger clients pays
late or you lose a client, then costs can quickly exceed your revenues and you will need
to tap into savings to pay the bills.
• Interest in Your Product/Service-Even with a lot of research and tests, you only have an
estimate of people’s interest in your product/service, and that interest is somewhat
unpredictable. This means that your financial projections can be flawed, which can have
major effects on your company.

• Trusting Key Employees-If you are starting your business, you won’t have the resources to hire
a full team, which means you will have a small group of people putting a lot of effort into the
product to get it going. This means that you will have to put a lot of trust in this small group of
people to get the job done, otherwise your timeline can be completely wrong.

• Betting on a Crucial Deadline-Finances are often tight in a start-up and investors want to
see progress, which means that several milestones can be tied to a certain deadline.
This means that entrepreneurs regularly have to worry about hitting a specific deadline
and need to make sure to have a follow up plan if it does not work out.
• Committing Personal Time (and Health)-You will spend countless hours working on your
business to make it successful, which will make you miss out on personal time and often
entrepreneurs end up sacrificing their health by not sleeping enough, being under
constant stress and eating unhealthy foods.
• Emotional Risk-Starting a business will mean that you will go through an emotional
rollercoaster – you may feel others had it easier to start with, there might be jealousy of
a competitor who got into press, romantic difficulties because you are spending so
much time on the business, self-doubt, problems with time management and not
enough time to see your family and friends, feeling of rejection by investors, press, etc.,
or problems with your fellow co-founders or employees. It can also be a large burden to
be responsible for the business all by yourself, which can be scary and lead to feelings of
loneliness.
 • Risk of Scaling-As your business is growing, a new set of challenges will be awaiting you,
spanning from hiring more employees, opening another office, technical upgrades, launching a
new product to acquiring another business. There are a lot of pitfalls on the way so you need a
strong support network and a team you can trust to help you with these challenges.

Given these, will you venture into entrepreneurship in the future? Why or why not?

Yes, if I will be fully or at least knowledgeable enough and mentally ready given its risk
factors since it is very essential to have business skills to endure with the worlds fast
growing economy and also a capital to start with the business. We have an ambition,
and this is one of my dream to be an entrepreneur in the future because I believe we
still have the room for growth and being entrepreneur will somehow fulfill it. We don’t
only live as employee in our entire life, we could also be at our own boss.