Entrepreneurship
Nowadays, a large number of entrepreneurs are starting their business, trying to find new chances and using innovations in management and technology to achieve more economic benefit. In order to know how these entrepreneurs affect the economic growth, it is important to examine the relationship between entrepreneurship, innovation and economic development and define the role of creativity and problem solving in this relationship. This essay will begin with the definition of entrepreneurship and innovation and then explain their relationship, followed by how these two affect economic growth. It will then provide a case to explain the relationship of these three factors. Finally, the role of creativity and problem solving will be discussed.
To analyze the relationship between entrepreneurship, innovation and economic growth, it is necessary to understand the definition of these terms. The word entrepreneur, first used by Cantillon in his essay published in 1755, refers to an individual who does business under conditions of uncertainty in order to make entrepreneurial profit. Say (1767-1832) gives a more explicit definition including the different characteristics an entrepreneur should have, namely, the ability to “deal successfully with financial markets and the markets for raw materials, the production plant and equipment, as well as labor and premises”(Lumsdaine, Binks, 2007, p.13). However, in Say’s definition, there is still a crucial element missing which Joseph Schumpeter (1883-1950) comes up with. Schumpeter (1883-1950) adds the element of difference, uniqueness, innovation and change to Say’s definition. Combine the theory of many economists the definition of entrepreneurship be indicated as follow: “the Entrepreneurship is the manifest ability and willingness of individuals, on their own, in teams, within and outside existing organizations to perceive and create new economic opportunities (new products, new production methods, new organizational schemes,
To analyze the relationship between entrepreneurship, innovation and economic growth, it is necessary to understand the definition of these terms. The word entrepreneur, first used by Cantillon in his essay published in 1755, refers to an individual who does business under conditions of uncertainty in order to make entrepreneurial profit. Say (1767-1832) gives a more explicit definition including the different characteristics an entrepreneur should have, namely, the ability to “deal successfully with financial markets and the markets for raw materials, the production plant and equipment, as well as labor and premises”(Lumsdaine, Binks, 2007, p.13). However, in Say’s definition, there is still a crucial element missing which Joseph Schumpeter (1883-1950) comes up with. Schumpeter (1883-1950) adds the element of difference, uniqueness, innovation and change to Say’s definition. Combine the theory of many economists the definition of entrepreneurship be indicated as follow: “the Entrepreneurship is the manifest ability and willingness of individuals, on their own, in teams, within and outside existing organizations to perceive and create new economic opportunities (new products, new production methods, new organizational schemes,
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