...1 Entrepreneurship, Innovation, and Economic Development: An Overview Adam Szirmai, Wim Naudé, and Micheline Goedhuys 1.1 Purpose of the book Economic development requires sustainable and shared increases in per capita income accompanied by changes in the structural composition of an economy towards higher value added goods and more efficient production methods. Entrepreneurs can contribute to economic development by facilitating the reallocation of resources from less to more productive uses (Acs and Storey 2004), by performing ‘cost-discovery’, ‘gap-filling’, and ‘input-completing’ functions in the economy (Leibenstein 1968; Hausmann and Rodrik 2003) and by supporting structural change (Lewis 1954; Gries and Naudé 2010). These roles have recently been the subject of a growing literature (see e.g. Minniti and Naudé 2010; Naudé 2010a, 2010b, 2010c). A neglected function in this literature is the potential role of entrepreneurs as innovators in developing countries. Joseph Schumpeter pointed out a century ago that entrepreneurs are often innovators, bringing new goods and technologies to markets, opening up new markets, processes, and ideas, and commercializing new knowledge. But, it is often mistakenly suggested that innovation by entrepreneurs is less important for growth in low-income developing countries than in more advanced economies.1 A substantial literature has been devoted to understanding the conditions under which entrepreneurs innovate, and the nature and evolution...
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...challenges of sustained growth and pro-poor development. India is an extreme “dual” economy.1 At one extreme, it is the world’s fourth-largest economy in purchasing power parity (PPP) terms, it is a nuclear and space power, and it is increasingly becoming a top global innovation player in certain key economic sectors––such as biotechnology, pharmaceuticals, automotive components, information technology (IT), software, and IT-enabled services (ITES). At the opposite extreme, India largely remains a subsistence economy. With an average per capita income of $720 in 2005, India is still a low-income and mainly rural, agrarian economy. About a quarter of its population lives below the national poverty line, with significant spatial variance across and within states.2 Roughly 70 percent of its population is rural, and 60 percent of the workforce is engaged in agriculture. Illiteracy rates are 46 percent for women and 25 percent for men.3 Given this dual economy, it is natural to ask what can be done both to strengthen the likelihood of sustained high growth rates and to address the unmet needs of the informal sector and the poor. To sustain growth and reduce poverty, India must leverage and improve its innovation potential. Innovation can be a critical driver of increased productivity and competitiveness and, ultimately, poverty alleviation.4 India’s recent acceleration in growth has been impressive. Over the 2004–06 period, real GDP has grown by over 8 percent a year. Growth has been driven...
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...frameworks exists for the formulation and implementation of strategies. There is no consensus on the factors among the scholars that affect strategic orientation of a enterprise. The consideration is mostly towards market/costumer satisfaction, technology, competition, with the enterprise’s capabilities affecting the most. Some of the scholars emphasize management issues and strategic thinking. Others such as Porter, focus on typology and resource bases. However, few scholars focus on the impact of product life cycle on strategic orientation. The attempt in this paper is to show that not only does the PLC orient strategy of an enterprise faster and straight forward than any other factors, but it also takes all other factors into account. The main question is “how product life cycle affects the strategic orientation of a enterprise”. This study began by defining strategic orientation, product life cycle, and their analysis. The study is focused on how the product life cycle has been influenced by innovation capabilities and how it sequentially affects strategic orientation. Every enterprise has different types of innovation capabilities at every stage of product life cycle, and reacts to the competition and environmental changes differently. Also, each stage of product life cycle, affects the enterprise’s innovation capabilities differently. On...
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...firms. More importantly, data show that large businesses offer better jobs than small businesses, on average, in terms of both compensation and stability. Further, there is little convincing evidence to suggest that small businesses have an edge over larger businesses in innovation. However, research and experience show that pursuing large businesses is likely to be a poor economic development strategy, which suggests that promoting and fostering small businesses may offer a more viable alternative. Small businesses also contribute to the tax returns in the country. Although their contribution is far lesser than those larger companies provide, it still counts. The competition that small businesses stimulate is a driving force in the economy, as well as a challenge to the larger companies. Background Reading Small, medium and micro-enterprise (SMME) development was identified by the government as a priority in creating jobs to solve the high unemployment rate in South Africa, and the Small Business Act was introduced in 1996 (Nieman, 2001). In terms of the South African National Small Business Act, 1996, a small business is defined as a “separate and distinct entity, including a cooperative enterprise...
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...asymptotic limit of the development." For enterprises, "or else it will hand over to the next challenger who has a revolutionary or innovation spirit, or on their company's strategic approach to a revolution." Therefore, Hamel made to establish a new strategic concept: "Strategy is Revolution, everything else is just tactics Optimization, Innovation and Revolution Strategy There are several theoretical debates in business strategy namely prescriptive versus emergent (Carr et al, 2004), positioning versus resource based view (Mosakowski, 1998) and innovation versus optimization (Johnston et al, 2001). In this article, innovation versus optimization which concentrates on the transformation of the industry is the mainly debate to discuss. In a broader context that innovation means new approach to doing business (Slavik, 2002, p. 43). The human now, face of one pair of sharp social contradictions: on the one hand: the uses of various resources available are scarce; on the other hand, the human desire is infinite, and will not stay at a certain level. Therefore, the nature of the economy is to make a choice, to the appropriate allocation and full use of scarce resources to produce products, and assigned to social groups and members to meet their growing needs and desires. Corporate strategy formulation is to make a choice and direction. Business management is all required management innovation, management innovation and strategy innovation is the high ground and difficult that...
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...sustainable development by advancing policy recommendations on international trade and investment, economic policy, climate change, measurement and assessment, and natural resources management. Through the Internet, we report on international negotiations and share knowledge gained through collaborative projects with global partners, resulting in more rigorous research, capacity building in developing countries and better dialogue between North and South. Upgrading China’s Manufacturing Sector Pan Yue Party School of the Central Committee of the Communist Party of China Simon J. Evenett University of St. Gallen and Centre for Economic Policy Research IISD’s vision is better living for all— sustainably; its mission is to champion innovation, enabling societies to live sustainably. IISD is registered as a charitable organization in Canada and has 501(c)(3) status in the United States. IISD receives core operating support from the Government of Canada, provided through the Canadian International Development Agency (CIDA), the International Development Research Centre (IDRC) and Environment Canada; and from the Province of Manitoba. The institute receives project funding from numerous governments inside and outside Canada, United Nations agencies, foundations and the priate sector. International Institute for Sustainable Development 161 Portage Avenue East, 6th Floor Winnipeg, Manitoba Canada R3B 0Y4 Tel: +1 (204) 958–7700 Fax: +1 (204) 958–7710 E-mail: info@iisd.ca July...
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...industrialization, developing countries expect to attain higher economic growth and reach as high status as developed countries possess. However, there are still many arguments as if the approach of industrial policy has actually been successful in the process of economy transformation of developing countries. This section mainly focuses on an innovation-technology driven of industrial policy, which might be helpful in promoting skill upgrading, improving industrial growth and producing high quality exported products. Hence, innovation and technology are absolutely important for industrial policy and seen as...
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...Case Analysis - LINDO ENTERPRISES By: Catherine Q. Pagdato I. Executive Summary Lindo Enterprises is one of the small-scale industries which has established and positioned their product in the market. They are in the business of processing raw seafood into a packed-snacks. Their financial data had shown an increasing sales and profit year after year since 1998. However, they are faced with a challenge of maintaining their competitive advantage and market position through a sustainable 10% annual growth rate for the next five years. Achieving this target would require the considerations and a careful study of the major threat or problems that the business is, and is going to face. Competition is on the top list, distribution of the product both locally and internationally through export-consolidators considering the quality standard, the increasing worldwide trend towards health consciousness which negates the consumption of processed snack foods and the stricter health and sanitary requirements on the import goods of the export markets are the major threat that must be resolved or given action. The analyst had come up with the recommended plan of action that could counter strike the above mentioned threats or problems. A strong campaign for marketing strategies to promote the product and gain the competitive advantage, a nationwide distribution of the product must be targeted, a continuous innovation of the product focusing on its quality and standards that could surpass...
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...Cycle…………………………………………5 5.0 Industry Level Analysis (Dell)………………………………………………6 6.0 Business Strategy……………………………………………………………7 7.0 Enterprise Solutions and service…………………………………………….8 8.0 PEST Analysis of Dell Company…………………………………………...11 9.0 Porters Five Forces of Dell………………………………………………….13 10.0 Stage of Industry Lifecycle of Dell…………………………………………16 11.0 Recommendation to improve performance of Dell…………………………17 12.0 Conclusion…………………………………………………………………..18 Bibliography………………………………………………………………………....19 Appendix…………………………………………………………………………….21 Overview of Industry Life Cycle Industry Life Cycle (ILC) is the stages of evolution through which an industry progresses as it moves from conception to stabilization and stagnation. Different analyses posit different stages of an industry life cycle (usually four to five), but all emphasize that an industry has a beginning, with technological innovation; a period of rapid growth; maturity and consolidation; and finally decline and possibly death. Industry dynamic impacts firm strategy and survival, and it is important to managers understanding that whether firm should compete or cooperate at different stages of the industry life cycle (Wilson & Hynes, 2009). One of the main tenets of how firms and industries evolve is that, as some businesses mature, the basis of competition shifts from product innovation to process innovation (Utterback and Abernathy 1975; Utterback and Suarez 1993; Utterback 1994; Klepper 1996, 1997; Adner and Levinthal 2001)...
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...International Journal of Innovations in Engineering and Technology (IJIET) Social Entrepreneurship: A Growing Trend in Indian Economy Dr. Partap Singh Head & Asstt. Professor, Deptt. of Management studies S. D. Institute of Technology and Mgt. (SDITM) Israna, Panipat, Haryana Abstract - Social entrepreneurs can help get better various issues like nutrition, education and health care and many are still blighted by unemployment and illiteracy by helping those less fortunate towards a worthwhile life. Rather than leaving societal needs to the government or business sectors, they can solve the problem by changing the system. Social entrepreneurship is expected to be the next big thing to influence India as the country juggles to achieve a balance between a growing GDP growth, ensuring inclusive growth and attempting to address issues ranging from education, energy efficiency to climate change. This paper attempts an analytical, critical and synthetic examination of social entrepreneurship in India. Key words: Social venture, inclusive growth, and social problems. I. INTRODUCTION Social entrepreneurship is the recognition of a social problem and the uses of entrepreneurial principles to organize create and manage a social venture to achieve a desired social change. While a business entrepreneur typically measures performance in profit and return, a social entrepreneur also measures positive returns to society. Thus, the main aim of social entrepreneurship is to further broaden...
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...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...
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...promoting their company. They must also be principled and caring towards their employees and customers. - By being hardworking entrepreneurs, we all have the opportunity to be very successful.” 2 The essay examines the importance of entrepreneurship within the economy, core elements of entrepreneurship, and how entrepreneurial behaviour and certain character traits impact success. The investigation is based on statements about entrepreneurship given by fourth grade high school students in Ohio. The essay will argue that entrepreneurship is an essential part of economics in a free-enterprise system. Furthermore, it will point out that an entrepreneur needs to follow certain codes of conduct to be successful. It will also emphasise that to achieve success certain character traits are crucial. “Entrepreneurship is one of the most important parts of economics in a free-enterprise system.” is the first statement made by the high school students. The following paragraph will point...
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...Chapter 4 Building Competitive Advantage Page 57 4 Building Competitive Advantage Enterprise in Ireland over the next decade will operate in a global competitive environment that will be considerably more challenging than in the past. The strengths and experience that we have built up will continue to contribute to the success of enterprise, but companies in Ireland will have to differentiate themselves from their competitors in new ways in order to create sustainable competitive advantage. In the past, Ireland has set a standard for change and growth that is admired around the world and we can continue to do so. The biggest barrier to this is complacency: there is a real danger that enterprise in Ireland will be overtaken by more agile competitors in other countries. Overcoming this complacency and taking decisive action requires a renewed sense of national cohesion, with a commitment to execution throughout the entire enterprise community and the support systems. As outlined in Chapter 3, in the years ahead, our ability to build sustainable enterprise in Ireland will depend critically on a unique combination of: Knowledge of customers and market needs The ability to develop new products and services to satisfy those needs A world-class education and training system that is responsive and flexible and that supplies the skills required by the changing needs of enterprise A competitive taxation regime An effective, agile government system. The first two of these...
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...Entrepreneur & the Business HEADING: Innovation, Entrepreneurship in Developing organisations. Introduction Defining Innovation and Entrepreneurship Traditional Drivers of Innovation Examining entrepreneur influences (public policy) Examining & evaluating Conclusion HEADING: Innovation, Entrepreneurship in Developing organisations. Introduction Entrepreneurship, as an engine of organisational change and development, defies conventional definition. This enigmatic status is attributable to an ever-changing nature in the face of developing social and economic conditions, as well as an ongoing evolution of the framework that surrounds its study. However, despite the shifting landscape, there tends to be agreement that entrepreneurship revolves around both the broad qualities and narrow actions within types of enterprise which require execution from an individual’s explicit control over some aspect of the unknown. With such a consensus in mind, this paper will delve into the effects an intrapreneur might have within the development of an organisation and examine the affects, which barriers might affect them in corporate innovation through internal entrepreneurship. Defining Innovation and Entrepreneurship While the economic contexts of entrepreneurship are frequently reported, it is also important to recognise how it is that enterprise maintains a role in sculpting the society in which it occurs. Essentially, the function of an entrepreneur is basically an...
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...v3n3p8 Abstract In the past few years, the global automobile industry is developing difficultly because of the influence from the financial crisis. In contrast, China's automobile production and sales are still having a blowout type growth, and jumped into the world's largest automobile production and sales market. At the same time, Chinese automobile companies continue to deepen and join with international brand cooperation; independent research and development of the independent brand production, and their technical also get greatly strengthened. Similarly, in the tide of industrial upgrading and international acquisitions, strategic transformation era of Chinese automobile industry has gradually started. This paper based on the world economic crisis brought both challenge and opportunity to the automobile industry in China, comprehensively analysis China's automobile industry development present situation and development trend in the transformation era, with case analysis of China's automobile companies, and then gives some suggestions on China's automobile industry strategy adjustment in transformation. Keywords: Strategic transformation, Automobile industry, China automobile development 1. Introduction Changing is the eternal theme of enterprise development. The strategic change is not only the result of...
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