Entrepreneurship & Economic Development Through LLP: A New Paradigam

Abstract

The essence of entrepreneurship lies in the perception and exploitation of new opportunities in the realm of business... it always has to do with bringing about a different use of national resources in that they are withdrawn from their traditional employ and subjected to new combinations. Entrepreneurs provide a spark to the engine of a nation's economy. The role played by the entrepreneurs in the advancement of an economy has been acknowledged internationally and India is no exception to that. Entrepreneurship and economic development are intimately interrelated. Amid the growth of the Indian economy the concept of Limited Liability Partnership got the statutory mandate of the Indian Parliament with the enactment of the Limited Liability Partnership Act, 2008. The concept of LLP is an alternative to the existing models of corporate vehicles. The need and rationale for introducing the LLP has been explained as under: With the growth of Indian economy, the role played by its entrepreneurs as well as its technical and professional manpower has been acknowledged internationally. It was felt opportune that entrepreneurship, knowledge and risk capital combine provide a further impetus to India's economic growth. In this background, a need had been felt for a new corporate form that would provide an alternative to traditional partnership with unlimited personal liability on the one hand, and, the statute based governance of the limited liability company on the other, in order to enable professional expertise and entrepreneurial initiative to combine organize and operate in flexible, innovative and efficient manner. The LLP avtar provides the benefit of organizational flexibility as in case of a traditional partnership with glittering feature of limited liability and the corporate personality of a company. The happiness for the LLPs is blowing with full volume. There is bound to be phenomenal increase in the number of LLPs and they are bound to dominate all areas of business and professional domain. The present day business world is full of competition and with the growth of economy, the role played by the entrepreneurs is internationally acknowledged.