A Review of the Role of Entrepreneurship in Stimulating Economic Growth, Reducing Unemployment and Increasing Level of Income in Low to Middle Income Countries.
A REVIEW OF THE ROLE OF ENTREPRENEURSHIP IN STIMULATING ECONOMIC GROWTH, REDUCING UNEMPLOYMENT AND INCREASING LEVEL OF INCOME IN LOW TO MIDDLE INCOME COUNTRIES.
INTRODUCTION
This paper sets out to review the role of entrepreneurship in stimulating economic growth, reducing unemployment and increasing levels of income in low to middle income countries. Nieman and Nieuwenhuizen (2009) states that the contribution of entrepreneurs to the economy can be attributed to their special qualities. They also further states that entrepreneurs have been responsible for growth and development over the centuries and are identified as the key role players in the economy of every country. The paper identifies the different definitions of an entrepreneur which are identified as the different channels in which entrepreneurship lead to economic growth, reduced unemployment and increased levels of income among countries. As a result of the role of entrepreneurship in any country, most countries emphasises on integrating entrepreneurial activity in its economic policy. A discussion is made on developing economies mainly South Africa, China, Brazil and Russia comparing the entrepreneurial activity within the economies.
Economic growth is best defined as a long-term expansion of the productive potential of the economy. It is measured by the comparing the difference between the Gross National Product (GNP) in a year with the GNP of the previous year. A growing economy is when the difference is positive. The term simply refers to an increase in the ability to produce goods and services. It is easier to define unemployment when there is an understanding of the term economic growth. Unemployment refers to when a person who is actively searching for employment cannot find work to do. This is an instrument used to determine the healthiness of an economy. After knowing the levels of unemployment in an economy, determining the level of income distribution becomes a bit projected. The
INTRODUCTION
This paper sets out to review the role of entrepreneurship in stimulating economic growth, reducing unemployment and increasing levels of income in low to middle income countries. Nieman and Nieuwenhuizen (2009) states that the contribution of entrepreneurs to the economy can be attributed to their special qualities. They also further states that entrepreneurs have been responsible for growth and development over the centuries and are identified as the key role players in the economy of every country. The paper identifies the different definitions of an entrepreneur which are identified as the different channels in which entrepreneurship lead to economic growth, reduced unemployment and increased levels of income among countries. As a result of the role of entrepreneurship in any country, most countries emphasises on integrating entrepreneurial activity in its economic policy. A discussion is made on developing economies mainly South Africa, China, Brazil and Russia comparing the entrepreneurial activity within the economies.
Economic growth is best defined as a long-term expansion of the productive potential of the economy. It is measured by the comparing the difference between the Gross National Product (GNP) in a year with the GNP of the previous year. A growing economy is when the difference is positive. The term simply refers to an increase in the ability to produce goods and services. It is easier to define unemployment when there is an understanding of the term economic growth. Unemployment refers to when a person who is actively searching for employment cannot find work to do. This is an instrument used to determine the healthiness of an economy. After knowing the levels of unemployment in an economy, determining the level of income distribution becomes a bit projected. The