...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 by innovation. In this competitive...
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...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 needs to understand...
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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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...The general relationship between innovation and entrepreneurship in organization is universally believed as complementing and interacting with each other. From perspective of innovation, it is the base of entrepreneurship. Just as the theory put forward by Ireland, Hitt, Camp and Sexon, that “the successful entrepreneurial venture is usually based on a significant innovation.” It can be proved by a simple model of the entrepreneurial process presented by Brazeal and Herbert revealing that innovation is the foundation of entrepreneurship.In this model, authors considered the ultimate entrepreneurial event is driven by psychological innovation, which is the consequence of creativity plus technical innovation. Meanwhile the original change leading to technical innovation is environmental change (Brazeal Herbert, 1999). From perspective of entrepreneurship, it is the inspiration of innovation. A significant problem that an increasing number of companies have realized is that a strong entrepreneurial approach to innovative activities is necessary to their external market and internal organization (Ortt and Smits, 2006). Obviously, it is a manager rather than an entrepreneur who lacks of entrepreneurship contributes to this problem due to changeless organizational routines combined with entrepreneurial awareness. Consequently, Thornpson accentuated that “if we want more innovation, we need more entrepreneur”. However, consider above all, based on much controversy about “who is the...
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...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 entrepreneurship was...
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...Discuss the relationship 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...
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...2012/13 Autumn Semester Entrepreneurship and Business Maris Farquharson Discuss the 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...
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...With the rapid development of dynamic global economy, increasingly countries are seeking breakthroughs of their economy development. Stimulated by these ever-increasing competition pressures, exploitation of new ideas and businesses which are of great potential to thrive economies, accordingly, is gainning widespread attention (Mansfield, 1972; Wong et al., 2005). In consequence, on a global scale, not only some developed countries with strong 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...
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...Title: Entrepreneurship and Business p11440 Module convenor: Maris Farquharson Essay title: Discuss the relationship between 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...
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...brief discussion of the relationship between entrepreneurship, innovation and economic development as well as the role of sustainability in the relationship Introduction: The origin and development on theory As early as the 17th century, the French term "entreprendre "appeared in economics, which evolved into "entrepreneur" as commonly used (Dees,1998). The concept of entrepreneur keeps on developing and varies with the development of socio-economics. Richard Cantillon published his in 1775 “Essay on the Nature of Trade in General" (Murphy,1986). Since then, entrepreneurship was given a definition in the perspective of behavior, including decision-making, sound judgment, supervision of production, innovation, and resource reallocation (Herron, 1993). The new definition of the "entrepreneur" credited by French economists was put by Jean Baptiste in the 19th century "the entrepreneur shifts economic resources out of an area of lower and into an area of higher productivity and greater yield". In this time, entrepreneurship was given the meaning of "creating values"(Dees, 1998). In 1911, “entrepreneur as innovator” was put forward by Schumpeter. In his theory, entrepreneurship nearly the same as innovation is thought to be a critical factor in the promotion of economic development. This theory was unceasingly completed by Schumpeter. Through the process of “disruptive innovation” (Schumpeter, 1942), entrepreneurs create economic opportunities and obtain economic benefits by causing...
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...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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...Financial Markets, Insurance and Entrepreneurship in the countries of the Middle East and North Africa (MENA) region Draft not to be cited February 27, 2013 1. Introduction The goal of the paper is to focus on the countries of the Middle East and North Africa (MENA) region and particularly those of the of the South of the Mediterranean, and examine the relationship between insurance – defined as the capability of covering the cost of future harmful events-and entrepreneurship broadly defined as the capability to start independent businesses activities and possibly introduce new combinations of productive factors. The analysis is based on the distinction between uncertainty and risk that Knight unveiled (Knight, 2012) arguing that risk involves situations where a decision maker face unknown outcomes but known ex-ante probability distributions, while uncertainty is characterized by situations in which the probability distribution of a random outcome is unknown. Consequently, while risk can be covered by insurance, uncertainty normally is not. The other pillar of this research is the role of entrepreneurship; a factor that the economic literature has not considered for long time and that in the last 20 years has become the center of any strategy for economic growth in emerging and advanced economies. The discovery of the role of entrepreneurs dates back to Schumpeter (Schumpeter, 1982a) who regards entrepreneurs as the engine of economic growth. Schumpeter (Schumpeter...
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...this introduction on Nigeria’s economic development challenge, this paper reviews business economics, outlining the relationship with innovation and social entrepreneurship. It also presents a holistic framework for economic development covering the individual, firm and macro levels, and outlines the roles of stakeholders at each level, in fostering national development. It concludes by calling on all stakeholders to play their part in leveraging entrepreneurship and all aspects of business economics to unleash the wealth of human capital that Nigeria is endowed with so that more people can participate in the transformation of Nigeria. Nigeria as the most populous country in Africa is naturally endowed with millions and millions of acres of arable land, 38.5 billion barrels of stated oil reserves, vast gas reserves, a variety of unexploited minerals, and a wealth of human capital by virtue of its estimated population of 150 million. It is the world’s eighth largest exporter of oil, and Africa’s second largest economy, after South Africa. Nigeria accounts for 15 per cent of Africa’s population, contributes 11 per cent of Africa’s total output and 16 per cent of its foreign reserves while it accounts for half of the population and more than two-thirds of the output of the West Africa sub-region. It has been at the forefront of the resolution of many political challenges in Africa. Over the last decade, Nigeria has implemented far reaching economic reforms aimed at improving macroeconomic...
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...GLOBAL ENTREPRENEURSHIP MONITOR Entrepreneurs and Entrepreneurial Employees Across the Globe Niels Bosma, Sander Wennekers and José Ernesto Amorós 2011 Extended Report: GLOBAL ENTREPRENEURSHIP MONITOR 2011 EXTENDED REPORT: Entrepreneurs and Entrepreneurial Employees Across the Globe Niels Bosma, Utrecht University & Global Entrepreneurship Research Association Sander Wennekers, EIM Business & Policy Research José Ernesto Amorós, Universidad del Desarrollo Founding and Sponsoring Institutions: Babson College, Babson Park, MA, United States Lead Sponsoring Institution and Founding Institution Universidad del Desarrollo, Santiago, Chile Sponsoring Institution UniversitiTun Abdul Razak, Malaysia Sponsoring Institution London Business School, London, United Kingdom Founding Institution Although GEM data were used in the preparation of this report, their interpretation and use are the sole responsibility of the authors. The authors would like to thank Erkko Autio, Alicia Coduras, ...
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...Entrepreneurship and Poverty Alleviation: An Empirical Study Nawal Meraj Syeda Ayesha Sadruddin Rahat Shams Business Ethics Dr. Muhammad Asim 11th May, 2015 ACKNOWLEDGEMENT We would also like to thank our colleagues from New York University, Abu Dhabi, who provided insight and expertise that greatly assisted the research, although they may not agree with all of the interpretations/conclusions of this paper. We would also like to show our highest gratitude to the Dr. Muhammad Asim for sharing his pearls of wisdom with us during the course of this research and guiding us throughout the course work. Table of Contents ABSTRACT 2 Keywords Error! Bookmark not defined. 1.0 INTRODUCION 2 2.0 CONCEPTUAL FRAMEWORKAND BACKGROUND OF THE STUDY 2 2.1 Concept of Poverty 2 2.2 Concept of Entrepreneurship 2 2.3 GDP Growth and Poverty Reduction 2 2.4 Strategies for Reducing Poverty through Entrepreneurship 2 2.5 Relieving Poverty through Entrepreneurship Education 2 3.0 METHODOLOGY OF THE STUDY 2 4.0 EMPIRICAL REVIEWS ON ENTREPRENEURSHIP AND POVERTY ALLEVIATION 2 5.0 CONCLUSION 2 6.0 FUTURE RESEARCH 2 REFERENCES 2 ABSTRACT Entrepreneurship is a real wellspring of riches and employment creation, financial and mechanical development and an indication of social change. Entrepreneurs have intermittently acquired a place in the discussions of drivers of economic development. Over the world, countries that made entrepreneurship...
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