Entrepreneur in Bd
INTRODUCTION
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From Adam Smith to Joseph Schumpeter, those who study the development of societies have considered entrepreneurial capital accumulation as the engine that drives economic growth (c.f., Van Stel, Carree & Thurik, 2005). For entrepreneurship to take root, it must be possible to accumulate capital are at a rate exceeding immediate consumption. There are two ways to achieve the minimum efficient scale of production; the first is to exogenously inject capital at a rate exceeding consumption and second, to technologically lower the efficient scale of production to a level matching that of local demand markets. Traditionally, capital accumulation in developing economies has been fostered by government policies to encourage foreign direct investment (FDI) by multinational corporations (MNC). However, MNC are not able to fully understand local consumers, implying that production is less likely to be at the efficiency frontier, implying the need for local entrepreneurs (Corbett, 2008). More pointedly, what has also been generally accepted is the notion that for economic growth to be self-sustaining the allocation of resources to production should be based on consumption priorities as revealed by the prices (values) assigned to productive outcomes. Production systems that depend on institutional interventions require the consumption of resources apart from those dedicate to the production of goods and services and is hence inefficient in the long run. The importance of this issue is particularly relevant for the rural regions of developing countries because the trigger for initial production, which is the presence of a local demand market, is often not large enough to foster rapid capital accumulation. Hence, production tends to remain at a subsistence level. The net effect is a brake in the development of the overall economy because capital accumulation
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From Adam Smith to Joseph Schumpeter, those who study the development of societies have considered entrepreneurial capital accumulation as the engine that drives economic growth (c.f., Van Stel, Carree & Thurik, 2005). For entrepreneurship to take root, it must be possible to accumulate capital are at a rate exceeding immediate consumption. There are two ways to achieve the minimum efficient scale of production; the first is to exogenously inject capital at a rate exceeding consumption and second, to technologically lower the efficient scale of production to a level matching that of local demand markets. Traditionally, capital accumulation in developing economies has been fostered by government policies to encourage foreign direct investment (FDI) by multinational corporations (MNC). However, MNC are not able to fully understand local consumers, implying that production is less likely to be at the efficiency frontier, implying the need for local entrepreneurs (Corbett, 2008). More pointedly, what has also been generally accepted is the notion that for economic growth to be self-sustaining the allocation of resources to production should be based on consumption priorities as revealed by the prices (values) assigned to productive outcomes. Production systems that depend on institutional interventions require the consumption of resources apart from those dedicate to the production of goods and services and is hence inefficient in the long run. The importance of this issue is particularly relevant for the rural regions of developing countries because the trigger for initial production, which is the presence of a local demand market, is often not large enough to foster rapid capital accumulation. Hence, production tends to remain at a subsistence level. The net effect is a brake in the development of the overall economy because capital accumulation