Importance Of Entrepreneurship In Economic Development

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The need for entrepreneurship for economic development has always been crucial in the history of successful nations and developed economies because entrepreneurs are the leaders who invent innovative ideas that give spark to economic activities. Entrepreneurship is a key determinant of sustainable growth in modern times. Mostly jobs are produced by small businesses started by entrepreneurial mind persons, many of them set up large companies. Entrepreneurship is frequently expressed in terms of higher self-esteem, to exercise creative freedoms, and an overall greater sense of control over their own lives. Many economists and educators believe that these types of experienced entrepreneurs foster the robust entrepreneurial culture that exploit personal and communal economic and social success at sub-national, national, and international level. A strand of literature explains different categories of entrepreneurship, which are of paramount importance in explaining the economic growth, employment and population. The task of this study is to identify those factors along with the role of education, Research and Development activities which significantly explain the entrepreneurial potential and skills and at the second stage, to examine the impact of those entrepreneurial skills on economic…show more content…
This has been stimulated by the rapid growth of the business sector in Asian Economies such as China, Brazil and India. As shown in the figure below, there are structural, economic, institutional and geographical factors which generate and promote entrepreneurship at its different stages: Necessity Based Entrepreneurship, Improvement Driven Entrepreneurship and Growth Led Entrepreneurship. Further, it explains the way those factors affect economic growth and employment generation indirectly through promoting entrepreneurship or
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