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.’
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.’
There are many links that bring together a relationship between entrepreneurship, innovation and economic development, and both creativity and problem solving play a large role within this relationship. Entrepreneurial activity can lead to innovation within a market for a product or service, which can therefore lead to increased economic development. Within this report I will attempt to analyse this relationship and create further links.
The definition of an entrepreneur and entrepreneurship has been argued since introduced by Richard Cantillon in 1755 in his work ‘Essai Sur La Nature de Commerce en General’. He originally suggested that an entrepreneur was an “individual who pursue(d) the profits from buying at a lower price than they expect to sell under conditions of uncertainty” (Entrepreneurship from Creativity to Innovation, 2007, p.12). However, under Joseph Schumpeter, the term has since developed into recognising “the element of difference, uniqueness and innovation” and he believed that “to generate a new product or process, then we can be called entrepreneurial” (Entrepreneurship from Creativity to Innovation, 2007, p.12). Here it has been shown that an entrepreneur is required to have the ability to be creative to ‘generate a new product or process’ and that innovation is often a necessary skill to succeed as an entrepreneur.
Entrepreneurship is a combination of what entrepreneurs do and refers to the events and results they produce and their economic impact. However, by going into this in more depth, we are able to reveal that entrepreneurship requires creativity to survive. Creativity arguably allows us to construct something new and so far unimagined and is essential to what Harvey Liebenstein
There are many links that bring together a relationship between entrepreneurship, innovation and economic development, and both creativity and problem solving play a large role within this relationship. Entrepreneurial activity can lead to innovation within a market for a product or service, which can therefore lead to increased economic development. Within this report I will attempt to analyse this relationship and create further links.
The definition of an entrepreneur and entrepreneurship has been argued since introduced by Richard Cantillon in 1755 in his work ‘Essai Sur La Nature de Commerce en General’. He originally suggested that an entrepreneur was an “individual who pursue(d) the profits from buying at a lower price than they expect to sell under conditions of uncertainty” (Entrepreneurship from Creativity to Innovation, 2007, p.12). However, under Joseph Schumpeter, the term has since developed into recognising “the element of difference, uniqueness and innovation” and he believed that “to generate a new product or process, then we can be called entrepreneurial” (Entrepreneurship from Creativity to Innovation, 2007, p.12). Here it has been shown that an entrepreneur is required to have the ability to be creative to ‘generate a new product or process’ and that innovation is often a necessary skill to succeed as an entrepreneur.
Entrepreneurship is a combination of what entrepreneurs do and refers to the events and results they produce and their economic impact. However, by going into this in more depth, we are able to reveal that entrepreneurship requires creativity to survive. Creativity arguably allows us to construct something new and so far unimagined and is essential to what Harvey Liebenstein
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