Factors that determine Demand for Entrepreneur

  • The degree of uncertainty: lf the degree of uncertainty in the economy is high, there will be high chances of earning high profits and the demand for entrepreneurs will be high and vice versa.
  • The level of industrial development:- If the level of industrial development is high, then the scale of production increases leading to high profit margins and a high demand for the entrepreneurs and vice versa.
  • The scale of production- If the scale of production is high, the demand for entrepreneurs increases due to the increased profits.
  • Marginal revenue productivity: In an industry, the number of entrepreneurs varies directly with, the revenue obtained from employment of entrepreneurs.
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