Q.How does entrepreneurship result in increasing the spectrum and scope of economic activities?

Entrepreneurship widens the spectrum and scope of economic activities by promoting the diversification of the economy, not merely 'more of the same'.

Entrepreneurs break the vicious cycles of underdevelopment on both the demand and supply sides — for example, by orienting domestic production towards exports and by mobilising local and overs …

Development does not mean merely 'more' and 'better' of the existing; it also means the diversification of economic activities across geographic, sectoral and technological scope. Entrepreneurship increases the spectrum and scope of economic activities in the following ways:

1. Breaking the demand-side vicious cycle. Underdeveloped economies are trapped by inadequate domestic demand. Entrepreneurs break this cycle by organising and orienting domestic production for exports, so that production and income are not limited by weak home demand. India, for instance, is poised to become a manufacturing hub for global markets. …