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19 votes
19 votes
Explain the effect of a lack or shortage of entrepreneurs on the economy​

1 Answer

12 votes
12 votes
If there is a lack/shortage of entrepreneurs, there will be much less economic growth. This is because entrepreneurs use new/innovative technologies, along with new products and services that in turn cause growth of the economy. Without as many, the economy would grow at a much slower rate, and possibly decline. Firms and economies also become more productive with more entrepreneurs, due to entrepreneurs causing increased competition among them.
User Rafael Lerm
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