ENTREPRENEURSHIP

Detailed explanation-1: -Entrepreneurship can contribute to GNP by creating new businesses and industries, which can lead to job creation, increased consumer spending, and higher tax revenue.

Detailed explanation-2: -Governments tax entrepreneurial value creation in several ways, notably as labor income, business income, current capital income (dividends and interest), or capital gains. The complex interactions among these taxes shape incentives.

Detailed explanation-3: -Specific Tax Revenue: The entrepreneurs pay direct and corporate taxes to the state government. Without this tax, the state government cannot function. The entrepreneurs help to generate additional taxes for the country. A lot of entrepreneurship startups are funded by companies in foreign countries.

Detailed explanation-4: -By creating new businesses, entrepreneurs not only provide jobs but also intensify competition and may even increase productivity through technological change. Consequently, high levels of measured entrepreneurship translate to high levels of economic development in a country.

Detailed explanation-5: -Contributing to Community Development – Through participation in Corporate Social Responsibility, entrepreneurs contribute to and support the development of infrastructure for education, healthcare, business training & mentorship and other social needs.