Regulations play a crucial role in the development of entrepreneurship, but it requires a fine balancing activity of the regulating authority. Unregulated entrepreneurship may be the cause of unwanted social evils including unfair market practices, corruption, financial crisis and even criminal activity that can negatively influence the economy as a whole.
Severe competition among a high number of entrepreneurs and loss of career choices for individuals is a complex issue. Market with outnumbered entrepreneurs’ levels raises the number of aspirations. The scenario of having too many entrepreneurs may also lead to income inequalities, making citizens more unhappy and the number of unemployed may exceed in the market.
It is crucial to understand the benefits and shortcomings of a balanced approach to the nourishment of entrepreneurship. It will help the state to get a positive impact on the economy and society. The interaction between entrepreneurs and economic development is so much interesting that the vital inputs from various units of the economy including policymakers, business owners, development organizations and other institutions can give the economy larger outputs. Regulations of any type that benefits the whole society not only firms are key to stabilized economic growth and it is necessary that nations at global levels should recognize the importance of the role of the state in this sector.