...Semester Entrepreneurship and Business Maris Farquharson Discuss the relationship between entrepreneurship, innovation and economic development. Yasong Zhao Student ID: 6511938 Word Count:1994 1. Introduction Over the past decade or so, the term entrepreneurship has become a fashionable way to describing the attempts at large-scale change by individuals and organizations. During this procedure, Innovation as the most important component of entrepreneurship is at a leading place, whereas, the combination of the two is vital to economic growth and sustainability in today’s dynamic and changing business environment. As a result, exploring the synergy relationship (either conceptual or practical) between entrepreneurship, innovation and economic development is gaining significance. They are complementary and related to each other, not at an initial stage of a new venture; rather they are dynamic and holistic processes. This integrative interaction between the three has had a positive and comprehensive impact to the whole society. Therefore, the role of sustainability is highlighted as the guidance to entrepreneurial and innovative decision making in the organisations or by individuals. This paper will first look into the relationship of the three by discussing each two of them, and then focus on the importance of sustainability from ecology, economy and social levels. 2. Relationship between entrepreneurship, innovation and economic development 2.1 Entrepreneurship and innovation...
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...Assignment #1—Description of Venture Entrepreneurship & Innovation July 17, 2011 1. Introduce the company and the product/service idea for the new venture. If you live in a highly industrialized city or region of the country that has many factories, some individuals do not even know what goes on inside these industries. This venture, Factory Tour Guides will be profitable for cities and/or regions. Factory tours will become extremely popular in the next decade, as more and more people are seeking different and interesting ways to spend their hard-earned vacation dollars. The first step in establishing a factory tour business is to find companies that will permit tours of their factories. This is not very hard to accomplish as the companies can be compensated by way of shared tour revenues. Often factories will sell their manufactured goods to the tourists at wholesale or factory-direct prices. A good example of a manufactured factory that would benefit greatly from this factory tour business would be electronics, oriental rugs, computer direct factories, and the list goes on. Factory Tours can be a home based operated business and can also be operated part-time. The estimated start-up cost can range from $10,000 to $50,000 (Entrepreneur). Factory tours have been around for centuries and the industry is growing. Many tourists have enjoyed touring tire factories, potato chip factories, coffee plantations as well as coal mines. With the strong work ethics in America, vacations...
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...Executive Summary Entrepreneurs play a vital role in economic development as key contributors to technological innovation and new job growth. Further, entrepreneurs help build communities in ways such as providing jobs, conducting business locally, creating and participating in entrepreneurial networks, investing in community projects, and giving to local charities. Realizing both the economic and social impact of entrepreneurship, many states and local communities have implemented aggressive strategies aimed at cultivating and nurturing entrepreneurs. In order for governments to effectively develop policies that will foster entrepreneurship, they must first understand the difference between entrepreneurs and small business owners, common misconceptions about entrepreneurs, and where entrepreneurs are located. Using this information, combined with entrepreneurial strategies outlined by the National Governors Association (NGA) Center for Best Practices, state governments can develop specific and effective measures to support entrepreneurs. While cursory inspection shows entrepreneurial growth companies (EGCs) and small business owners have a lot in common, there are certain distinct differences between the two. Controlled growth and continued profitability are the goal for many small businesses while EGCs are generally geared toward rapid growth and productivity gains. In addition, EGCs often have significant economic effects on a community, accounting for a large...
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...Innovation = something new and unique that has never been done before. A key attribute of any entrepreneur 2 types of innovation = breakthrough and incremental Breakthrough = radical change, something completely new and different that has never been seen before ex: a new product Incremental = improvement and enhancements to already existing products or services. EX: Changing the way mail is delivered – overnight delivery, or ATM. Product innovation = can be either breakthrough or incremental, as long as something unique comes from it. Steps = idea generation (try out different ideas and see which one will be best), development & incubation (come up with a working prototype to test out the new idea), Incubation (discover the target market, test market the product with focus groups for feedback), Commercial (bring the product to the market) Service innovation = either breakthrough or incremental, same as product however with a service. Process innovation = breakthrough or incremental, where the manufacturing process is made more effective. Improve quality and efficiency in the manufacturing of a product or offering of a service Entrepreneurs creative, risk taking, independent, reward. The individual has to be able to sense an opportunity that no one else sees, marshall the necessary resources to exploit the opportunity, while assuming all types of risk, and eventually will feel the significant rewards 4 schools of thought for how you become...
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...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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...capability to absorb and implement new ideas, but also some emerging developing countries, are taking measures to inspire entrepreneurship and innovation with purposes of benefiting economic development from these competitive advantages (Stoneman, 1995; Zhao, 2001). It is universally held that entrepreneurship and innovation are complementary and their combination can efficiently contribute to economy performance (Grupp, 2001; Stoneman, 1995). During the transfer from idea creation to eventually economy development, innovation is supposed to be a necessary condition, but it also demonstrates great insufficiency which can be completed by entrepreneurship’s mediating effects (Audretsch, 1995; Camp, 2005). This essay will primarily conduct a brief definition of entrepreneurship and innovation while introduce the role of problem solving and creativity, and thereby observe the synergy between entrepreneurship and innovation. Then theoretical and practical analysis will be made in their repective relationship with economy development. Ultimately, the holistic realtionship between entrepreneurship, in conjunction with innovation, and economy development will be discussed. Entrepreneurship and innovation are inclined to be misinterpreted identical since they both indicate creation and new development, but meanings they rootly represent are distinctive. Innovation is an instrument that intergrates, disperses and upgrades extant...
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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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...ECONOMIC DEVELOPMENT IS CAUSED BY ENTREPRENEURSHIP AND INNOVATION HAS TO BE SUSTAINABLE Economic development is separate to entrepreneurship and innovation as it is usually the result of both products together. It refers to changes in living standards or welfare over time. Entrepreneurship and innovation are interlinked and if one of them is achieved, the other must also be. Entrepreneurship is defined as one who introduces “the carrying out of new combinations,” (Schumpeter, 1934, p.74) whereas, innovation is the introduction of a new good or service into the market and can be split into two types: “the first refers to a gradualistic movement as tastes and populations change and refinements in business are developed. The second refers to spontaneous, discrete or discontinuous, internally generated changes which cannot be progressively associated with other causes,” (Binks & Vale, 1990, p.23) therefore, the first is gradual and is described as incremental innovation and the second is spontaneous which would be regarded as radical innovation. Radical innovation is classed as more significant for economic development. It is the idea of a discrete product that changes living standards more so. For example, for the camera industry in 2004: “Kodak and Fuji were among the first to embrace digital imaging technology and currently dominate the digital camera industry. Polaroid, on the other hand, faltered in the introduction of a digital camera.” (Danneels, 2004, p.252) So, this...
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...04.FEBRUARY.2015 Case Study Of Google, Inc. Innovation and Entrepreneurship By Wei, He (Vivian.H) Table of Contents What are the major problems facing Google in 2009 ........................................................... 3 Losing employees .................................................................................................................. 3 Stock prices going down ...................................................................................................... 3 Maintain company corporate culture in entrepreneurship and innovation ................... 3 Product not making money ................................................................................................. 4 Decrease in advertising revenue.......................................................................................... 4 What are the implications, opportunities and threats presented to Google ....................... 4 Strategies ............................................................................................................................... 4 Opportunity .......................................................................................................................... 5 Threats................................................................................................................................... 5 Explain what was the primary strategic inflection point for Google .................................. 6 Calculate the key profitability, and...
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...Although faced with many challenges and uncertainties, small businesses continue to expand and flourish across the United States. Small businesses are created through entrepreneurship, involving creativity, energy, proper planning and innovation; they benifit the country by providing opportunities, such as creating new jobs, making profits and improving the quality of a market products. Every small business has its own unique story of success and disparity. Alex Rigopulos and Eran Egozy, founders of Harmonix, a game developer, started out with severely inadequate revenue and failed products; eventually creating a virtual phenomenon known as "Guitar Hero" and "Rock Band" (two music video-games which sky-rocketed the company's success). Chef Nobu spent more than thirty years enduring experimentation, failure and unstable business partner- relationships. Chad Hurley, Steve Chen and Jawed Karim simply needed to figure out how to post a video segment, from a party, to the internet for sharing. Thus, the birth of Youtube.com. Without the prevailance of small businesses, we would not be living in the world the way it has been shaped. Harmonix, founded by Alex Rigopulos and Eran Egozy, is a video game company that created the revolutionary “Guitar Hero” and “Rock Band.” The root of their success was creativity and innovation, which was covered in class. The story began when Alex and Eran were finishing their degrees at MIT. Both were interested in applying music and technology to non-musicians...
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...(A) IMMIGRATION’S PAST QUESTIONS ON MATHEMATICS MATHEMATICS (40 QUESTIONS) In all there are usually 40 questions to answer. Qtn 1: What is the probability of having an odd number in a single toss of a fair die? Options: (a) 1/6 (b) 1/3 (c) ½ (d) 2/3 Answer: A Use the following information for question 2 and 3 The surname of 40 children in a class were arranged in alphabetical order,16 of the surnames begin with O and 9 of the surnames begins with A. 14 letters of the alphabet do not appear as the first letter of a surname. Qtn 2: What is the probability that the surname of a child picked at random from the class begins with either O and A? Options: (a) 5/8 (b)7/8 (c)9/16 (d)14/25 Answer: A Qtn 3: If more than one surname begins with a letter besides A and O, how many surnames begin with the letter? Options: (a) 2 (b) 3 (c) 4 (d) 6 Answer: B The table gives the score of a group of students in an English language test. Scores | 2 | 3 | 4 | 5 | 6 | 7 | No. of Students | 2 | 4 | 7 | 2 | 3 | 2 | Qtn 4: If a student is chosen at random from the group, what is the probability that he scored at least 6 marks? Options: (a) 3/20 (b) 1/5 (c) ¼ (d) 3/10 Answer: C Qtn 5: What is the probability that three customers waiting in a bank will be served in the Sequence of their arrival at the bank? Options: (a) 1/6 (b) 1/3 (c) ½ (d) 2/3 Answer: C Qtn 6: The probability that Kodjo and Adoga...
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...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 needs to understand how to apply or utilize innovation. Processing...
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...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 by innovation. In this competitive business world, innovation is the important tool that helps...
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...Nottingham University Business School Undergraduate Programmes 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 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...
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...Case Study: iPod to IPad: innovation and entrepreneurship at Apple Q1)What are the market segments indentified by Apple and their relevance over the years? Apple identified four key segments within the market: -Business, -Creative Professionals, -Education , -High end cosumers In 2000, 75% of the sales were to the traditional business and professional markets. The first ipod was launched in 2001 later followed by a 10 GB version. In 2003, the ITunes Music Store opened. Access to music and downloads became easier. By 2009, the situation had reversed with 60% of sales in the consumer markets of education, students and the broader consumer market. The search for consumer product in 2001 was the cause of this dramatic turn around. Prior to the launch of Ipod, Apple wanted to enter the market for consumer digital devices. They found the market for Digital MP3 players was relatively under developed with no big players involved and significant design flaws in the products on offer. Apple chose music on the move since the market potential was huge and no one had got the right recipe. Price was no barrier to Apple. By tradition the company tended to follow a premium price entry model. They understood that the Key success factors in the market were design, size, capacity, battery life, software and download facility. Apple were looking for creative professionals to satisfy the above criteria and seized the opportunity to hire Fadell who had ideas for a brand new MP3...
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