COMMITMENT OF entrepreneurs to expand their units is one of the major determinants of industrial development of any society. They contribute to industrial development in many ways, viz., capital formation, technological breakthrough, market expansion and organization of manufacturing units. French entrepreneurs (Landes, 1949 : 49-61), for instance, earn- ed high profits which mainly financed the industrial units of France. But their profits were not fully utilised for productive use. The French entrepreneurs were more committed to their families than to the nation, because they were not provided social security and prestige, and hence, they evaded the taxes and invested the profits for non-productive purposes like con- struction of houses which resulted in slow industrial develop- ment of their country. On the contrary, the industrial deve- lopment of Japan was quite fast. One of its reasons was the commitment of Japanese entrepreneurs to innovate resources of raw material, technology, methods of production, and markets.