Question

Describe TWO (2) reasons why entrepreneurship is important for developing countries such as Malaysia? Give example in your answer.   

Answer 1

Answer- entrepreneurship is important for developing countries because of following reasons:

- entrepreneurship creates new business which results in new employment

- entrepreneurship adds to national income. New employment and higher earning contribute to better national income in form of higher tax revenues and higher government spending.

-entrepreneurship leads to community development. Entrepreneur invests in community projects and provide financial support to local charities.

For example- Mardil medical one of the start up funded by Malaysia govt. Its CEO couldn't find a funding source , which is why he approached a Malaysian venture capitalist.