Who is an Entrepreneur in a Joint Stock Company?
The main parties involved in a joint stock company are the shareholders, directors and the management. The shareholders have risked their money but-they do not exercise any control over the business except in a very small corporation. There is thus a divorce between the two functions of an entrepreneur, viz., ownership (risk – taking control. The shareholders elect the directors exercise control over the business shareholders. The directors are also Sallust shareholders. Thus, t e)’ c entrepreneurs, for the. be mobilize resources and do not bear the entire risk nor do the a corp.
Low Level of Domestic Savings, In under – developed countries, the level of savings is very low. The main reason is that their level of national income or per capital income is very low. Under- developed countries are, in fact, caught up in vicious circle of poverty: Low income small savings low investment less productivity, ending in low income. Apart from the low level of absolute income, their low relative level of real income also reduces their capacity to save. This tendency of the people of under developed countries to copy the higher levels of consumption prevailing in the advanced countries has been called international demonstration effect by Nurse.The people, who get large incomes, generally. Leak of Entrepreneurship, Another reason
is the lack of good entrepreneurs who can invest the savings and carry out innovations. They are not daring bear large risks involved in making capital.