The Role of Entrepreneurship in Economic Development

Small scale businesses play a big role in economic development. They support the economy in these ways:

• Creation of employment: the economic activities of small scale businesses require people; hence the entrepreneur will create work for other people.
• Raising living standards: the entrepreneur, as well as his/her management and workers, will receive income generated from the economic activities and thus will be able to enjoy more goods and services.
• Provision of goods and services: the entrepreneur will produce agricultural products such as milk, produced by Mwalimu Njuguna; he/she will also provide services to the customers such as delivering milk to them.
• Contribution to savings for further investment: the economic activities will create higher incomes and hence the entrepreneur will save some money and the savings will be available for investment.

Case Analysis (10 minutes)

In reference to Mwalimu Njuguna’s case, outline the ways in which the small scale dairy farm has contributed to economic development.

1. Review the case study video.
2. In your journal, record in what ways Mwalimu has contributed to each of the four economic development areas mentioned above.