...industry success which directly relate to the economic development of a country as well as the global economy. In such a relationship, entrepreneurship with innovation is the major driving force behind the sustainable economic development and thus, entrepreneurs play the key role in manipulating the factors of production that include land, labour, capital and also the natural resources (Econlowdown, n.d.) to cause economic growth. In short, entrepreneurship contributes to the economic performances by introducing innovations, effectively allocating resources and creating changes. Hence, the aim of this essay is to discuss the nexus of entrepreneurship, innovation and economic development as well as the role that creativity and problem solving play in this relationship. From the business point of view, entrepreneurship is referred to the capacity and willingness to develop, organise and manage a business venture along with any of its risks in order to make profit by using the factors of production (BusinessDictionary.com, n.d.). Clearly, entrepreneurs are the people with particular characteristics and traits of behaviours whereas entrepreneurship is the result of what entrepreneurs do and refers to events and their economic impact (Lumsdaine and Binks, 2006). Innovation on the other hand is one of the key tools that could assist entrepreneurs to effectively realise the market opportunities that leads to a sustainable economic development. New ideas that add value to a firm is introduced...
Words: 1745 - Pages: 7
...In this essay, it would be found out that the relationship between entrepreneurship, innovation and economic development is a multidirectional cycle, which means that they affect each other in two directions. From one direction, when there is a problem entrepreneurs would use innovation which comes from creativity to solve it by entrepreneurship. Innovation deliveries new industries or get exist industries developed and both of those actions will lead economic to develop. The births of new industries encourage people with entrepreneurship to organize new economics. From the other direction, the development of economic absorbs new investments. Those investments include not only labour, land and capital, but also innovation which can improve the new good or service. The development in new industry can also offer money or other capital to encourage people with creativity to innovate. Innovation can be protected by entrepreneurship because it relies on innovation. As Thomson Edison* said, his inventions were from seeing a worthwhile need to be met and trailed after it until it came. So it can be seen as innovations are from solving problem and creativity. As an entrepreneur, spotting a problem and turn it into opportunity by creativity is called entrepreneurship. Entrepreneurship sets innovation to processing first and then gets profits from economic development. As Bolton and Thompson (2000) has recognized, entrepreneurship is about change and innovation. So every entrepreneurs...
Words: 898 - Pages: 4
...Entrepreneurship and Business (N11440 MY) Title of Work: Discuss the relationship between entrepreneurship, innovation and economic development. What role if any do creativity and problem solving play in this relationship? Refer to both theory and examples from the business world to support your discussion COPY 1 TITLE OF MODULE: Entrepreneurship and Business (N11440 MY) Title of Work: Discuss the relationship between entrepreneurship, innovation and economic development. What role if any do creativity and problem solving play in this relationship? Refer to both theory and examples from the business world to support your discussion COPY 2 Austrian writer, professor, management consultant and self-described “social ecologist,” Peter F. Drucker once said “Innovation is the specific instrument of entrepreneurship. The act that endows resources with a new capacity to create wealth.” (BrainyQuote, 2014) This essay aims to show how innovation, entrepreneurship and economic development are all linked together as shown in the statement above. Even though many a time the spotlight has been shined on entrepreneurship as the propellant towards success, there are still many factors that have to be taken into account such as creativity and problem solving skills. These all shall be the foundation of this particular essay. Entrepreneurs were first introduced...
Words: 2233 - Pages: 9
...between entrepreneurship, innovation and economic development. What role do creativity and problem solving play in this relationship? Refer to both theories and examples from the business world to support your discussion. Since last century, entrepreneurship and innovation have been heavily discussed. Entrepreneurs create new business and provide the job opportunities to society as well as promote the economic development. However, with the increasing global economic competition, normal entrepreneurship becomes less competitiveness, government committed to develop innovative entrepreneurship in recent years (Cukier, 2006). Therefore, the relationship between innovation and entrepreneurship becomes one of the most significant topics in the business field. Economists do a large number of researches to explore the connection between entrepreneurship and innovation as well as the position they related in economic development. During the process of exploring, a considerable amount of definitions are put forward by experts based on their research knowledge and the analysis of entrepreneurs developed in recent decades. This essay will list the definitions put forward by different economists, then support the ideas that innovation, entrepreneurship and economic development are deeply connected and interacted. Finally, combine with the experience of university group entrepreneurship project, attempt to explain importance role that the creativity and problem solving played in this process...
Words: 2450 - Pages: 10
...part in the context of economic development since their close involvement in the processes of manufacture, trading and profit generation. However, it also appears that the term entrepreneurship is not easy to understand although this subject seems similar to the term of entrepreneur. Based on this background, this essay will first fully analyze the principal subject of entrepreneurship reflecting various economists’ perspectives, and secondly illustrate the relationship between entrepreneurship and innovation, before suggesting that in general, entrepreneurship is closely linked with innovation and they are both significant elements in the development of economy. Furthermore, this essay will also illustrate that creativity and problem solving are effective capabilities in entrepreneurial processes of business planning and decision making in the realization of innovation. To understand the relationship between entrepreneurship, innovation and economic development, it is crucial and necessary to analyze the keywords in this statement. First of all, what is entrepreneurship? In fact, despite the potential that every individual may take a mutual view directly on the term of entrepreneurship, there is no fixed definition of this term. As is noted by Baumol (1968: 64), the concept of entrepreneurship is in fact obscure and it is not often the case that, this term can be defined explicitly in the theoretical scope. Traced back to the early history in economic context, the subject of...
Words: 2324 - Pages: 10
...Technological innovation has made a great contribution on economic development. However, entrepreneurship, another concept, also has essential consequences in terms of economic performance. The concept of the “entrepreneur as innovator” which was established by Schumpeter (1911) drives economic development. Therefore, it can be inferred that entrepreneur is a key source which leads to the increasing of economic growth. This essay will discuss the relationship between entrepreneurship, innovation and economic development in four sections. The first section will focus on the relationship between innovation and entrepreneurship. Section two will show the advantages of innovation in economic development. Section three will describe the impact of entrepreneurship on economic growth which divided into three parts: the regional, industry and global levels. The final section will concentrate on the role creativity and problem solving play in this relationship. The relationship between innovation and entrepreneurship is mutual. On the one hand, innovation is a precondition of entrepreneurship to drive entrepreneurial establishments to succeed. In order to prove this, Hitt, Ireland, Sexon and Camp (2002) point out that a successful entrepreneurial establishment cannot leave the help of essential innovation. Many innovations are produced by individual entrepreneurs; it usually takes place in large companies in developed countries. Therefore, a large amount of entrepreneurial opportunities...
Words: 1589 - Pages: 7
...entrepreneurship, innovation and economic development. What role do creativity and problem solving play in this relationship? Refer to both theory and examples from the business world to support your discussion. Word Count: 1959 Submitted: 27/11/2012 Student: Pan Yanhao Student ID: 6508745 Recent years the popularity of entrepreneurship education is growing worldwide (Gormon & Hanlon & King, 1997). In the United Kingdom more students are being taught in classes to accumulate entrepreneurial skills in their own field to make considerable achievement (Department for Culture, Media and Sport (DCMS), 2006). In addition, the government in some countries also give emphasises on the entrepreneurship and build specific plans about the improvement of entrepreneurial skills (Lumsdaine and Binks, 2007). The reason why entrepreneurship becomes more prevalent is that entrepreneurship and its vital part which is innovation are regarded as crucial components in the process of economic development (Baumol, 1968). This essay will demonstrate the relationship between entrepreneurship, innovation and economic development and illustrate the role of creativity and problem solving in this complex relationship. Section one will describe that innovation is the core of entrepreneurship and entrepreneurship will also enhance the development of innovation. Section two of this essay will illustrate innovation makes huge influences on improving the economic growth and economic growth will speed up the...
Words: 2539 - Pages: 11
...relationship between entrepreneurship, innovation and economic development. What role do creativity and problem solving play in this relationship? Xiaoyu XU Student ID: 6509160 Word Count: 2006 COPY 1 1. Introduction In the recent few decades, the development of traditional manufacture is restricted as a result of the limitation of both capital and nature resources. Simultaneously, entrepreneurship and innovation are attached more and more importance in enhancing sustainable economic growth. Therefore, there is a need to explore the genuine relationship between entrepreneurship, innovation and economic development. Entrepreneurship has numerous definitions and one of the most acknowledged literatures is Schumpeter’s (1934) theory which viewed entrepreneurship as a creative reply to a problem or opportunity. On the other hand, innovation is simply doing something in a way which is new, different and better (Wickham, 2006). Nonetheless, in the process of realizing economic growth, problems will definitely occur and thus creativity and problem solving capabilities may play a significant role in the relationships above. While it may be true that innovation, as a crucial part of the entrepreneurial process, and entrepreneurship both have positive effects on economic growth, the overall GDP of a domain country will decrease as the rate of entrepreneurship has been driven above the equilibrium. At the same time, creativity and problem solving are fundamental in these relationships...
Words: 2533 - Pages: 11
...new varieties of plants. The law of intellectual property recognizes and protects, among other things, the rights of the creators encouraging them to further their creative efforts and facilitating the dissemination and application of the results of creative efforts for the benefit of both creators and society as a whole. The areas such as promotion of national creativity, protection and management of the results of creativity, facilitation of transfer and management of technology, attraction of investment, enhancement of R&D activities, development of human resources and stimulation of entrepreneurship are some of the essential components of an environment conducive to a knowledge economy. Intellectual property which concerns creation, management and protection of knowledge can greatly contribute to developing and maintaining such an environment.The economic dynamism of intellectual property is multi-faceted. A few of them may be briefly highlighted as follows. Incentive for inventiveness It is the human experience that the nations which are creative and innovative have better chances of spurring the economic growth. The creation of knowledge is an indispensable component in any economy. Intellectual property is always active as an incentive for creativeness and innovativeness. The law of patents, for example, operates as an incentive for inventiveness by recognizing and providing material benefits to...
Words: 1962 - Pages: 8
...In the business world, entrepreneurship has two meanings. It can be defined as the act of being an entrepreneur, an individual who starts and owns a business and is in charge of managing its smooth running by coordinating activities. Secondly, it can be seen as a key component to the economy who discovers problem areas and sees them as creative opportunities to innovate. A successful innovative entrepreneur should be motivated by nature to produce the right product, in the right market, at the right time and of course aim the right consumers. Richard Cantillon was an economist who believed that entrepreneurs bring equilibrium to the market by balancing the market forces of supply and demand. He proposed that risk taking is a common characteristic of a competent and self confident entrepreneur because he places the survival of the organization first but his career last by going over the edge with no fear. He may even be able to go beyond his own capabilities and progress further on if he believes in himself. Acceptance of past mistakes means that they are not seen as a failure but as a lesson of trial and error to avoid future repetition under the same circumstances. Although, careful planning and consideration are some of the main characteristics of an entrepreneur, uncertainty comes along since he cannot be absolutely sure he is going to succeed 100% or whether he made the right decision. The difference between risk and uncertainty is that the first one is based on...
Words: 1998 - Pages: 8
...sector as a production system 2.8.1. Local production clusters for global distribution networks 2.8.2. High rate of new business creation 2.9. The spatial dimension of the cultural production 2.10.1. The concept of cluster 2.10.2. Types of cluster 2.11. The creative economy as part of the knowledge economy Conclusion Reference list Introduction Creative industries are now more and more promoted as an important component of the “new economies”, which will drive the future economic growth. The economic development debates have now shifted from discussing countries to most often seeing urban areas as the drivers of countries economies and a blooming creative economy is frequently named among necessities for fostering this development. During the past two decades there has been an increasing attention both in academic research and policy making towards exploring the role of creative industries (further in the text – CI) in local, national and regional economic development. When put in the larger context of knowledge based industries, these industries are one of the key characteristics of those...
Words: 9464 - Pages: 38
...research and literature on CREATIVITY IN EDUCATION Report prepared for the Qualifications and Curriculum Authority by Anna Craft March 2001 2 Contents Page Numbers 1.0 Introduction 1.1 Aims and purposes 1.2 Approach taken and areas covered 4 2.0 A summary of the research and literature on creativity 2.1 Historical overview 2.2 The early part of the twentieth century 2.3 More recent directions in creativity research 2.4 Lines of study stemming from the 1950s 2.4.1 Personality 2.4.2 Cognition 2.4.3 Ways to stimulate creativity 2.4.4 Creativity and social systems 2.5 Background to creativity in education 2.6 Broader claims for creativity in the curriculum 5-12 3.0 What do we mean by creativity? 3.1 Definitions or descriptions of creativity 3.2 High creativity 3.3 Ordinary, or ‘democratic’ creativity 13-15 4.0 The development of creativity in education 4.1 Research into the development of creativity in education 4.1.1 Comprehensive approaches 4.1.2 Educational approaches 4.1.3 Psychodynamic approaches 4.1.4 Humanistic approaches 4.1.5 Behaviourist approaches 4.2 Teaching approaches to developing creativity 4.2.1 ‘Creative cycle’ approaches 4.2.2 Single-strategy approaches 4.2.3 Multi-strategy approaches 4.2.4 System approaches 4.2.5 Overall pedagogic criteria approaches 16-22 3 5.0 Assessment and creativity 5.1 Recording and assessing creativity 23-24 6.0 Conclusions and key findings 6.1 High and democratic creativity 6.2 Domain-specific and...
Words: 11902 - Pages: 48
...social connections, infrastructure, entertainment, and endless opportunities with whatsoever interest its residents. Creative Brisbane creative economy 2013-22 aims to make Brisbane an expressive, enthusiastic and energetic hub. Its vision is to make Brisbane a leading city, which has people with different talent, great opportunities for migrants and students. With the new global economy the cities advantage with opportunities that ensures the ease of business, innovative human capital and thereby boosts the economy. Creativity and innovation are like the heart and soul for driving the economy. People with talent and motivation seek for opportunities where they can sail on their dreams. They would invest where they see these opportunities and this would boost the economy. The report in particular reflects upon some important aspects of the rising economy. The retention of the talented workforce, attracting the talent pool from across the world, positioning creativity and innovation for boosting the economy, expanding the market shares and promoting local products are some of the aspects to be considered and worked upon in order to accomplish the vision for Brisbane by 2022. DESCRIPTION: With the new world trends in...
Words: 2200 - Pages: 9
...utilizes opportunities; converts those opportunities into marketable ideas; adds value through time, effort, and money; and realizes the rewards from these efforts [1]. Entrepreneurs are creative in the form that they think and reason genuinely, are highly motivated and are equipped with the acute amount of knowledge to bring about innovative changes or ideas that can directly impact the economic development. They should possess the willingness to learn take risks as introducing new industries, products, and sectors will not be successfully implemented without having the self-confidence and self-reliance to do so. Ultimately, passion is one of the most vital quality of an entrepreneur because without it, these concepts will most likely be destined to fail eventually. Moreover, a famous motivational speaker and author said “A great leader’s courage to fulfill his vision comes from passion, not position.”- John Maxwell. Innovation is the molding of current ideas and methods of the development of new ideas based upon products already launched in the market. Without innovation, economic growth and development would not be possible and therefore we would be using the same products for decades as well as not increasing our standard quality of living. One of the pioneers...
Words: 1648 - Pages: 7
...The history of human development has been affected by many factors such as environment, trade and science. There is no doubt that inventions or creations of something new have had a significant influence in the historical process of human beings. Creativity is the source of innovation, and all the inventions, science and technology which promoted the advancement of human civilization, are inspired by creative ideas. Without creativity, there would be no development, and the world might be the same as hundred years ago. “Creativity, understood as fruitful originality, not mere novelty, is omnipresent in human experience, from the brilliant artistic works, inventions and discoveries that change the course of one life or many to the everyday efforts of problem solving seen in verbal or mechanical wit” (Caramenico & Goodman, 2013). On the other hand, commercial and trade also play a substantial role in the development of society. Moreover, the method of payment, which is a crucial part of business, has had a tremendous impact on individual’s lives. This essay will analyse the creativity of payments in two aspects which are motivation and imagination by examing the development of human society. This essay will also provide two real world examples to give a critical analysis of how creativity is applied in payments. The methods of payments are everywhere in people’s lives, such as shopping or transfer accounts. According to Babbush & Charles (2008), “payment is the performance...
Words: 1718 - Pages: 7
