Discuss the Relationship between Entrepreneurship, innovation and development. What role do creativity and problem solving play in this relationship?
Introduction:
Economic Development and entrepreneurship are directly correlated. Despite of the fact that the world faced severe financial and social stress, yet the entrepreneurs are still enjoying their life due to their innovations and ideas that they brought to the world. While the Keynesian theory after World War 2, dominated discussion of economic development emphasized & focused on the significance of such factors as foreign abet and government development, it is now widely agreed that the entrepreneur is the key driver of economic expansion. Economic development and institutions are interdependent
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These can be labeled as follows; (1) Stage which is factor driven, (2) Stage driven by efficiency and (3) stage driven by innovativeness and ideas. In the first stage which is factor driven, countries are in competition for low cost production efficiencies like commodities or other services like VAS. Sole proprietorship is one of the examples of low cost efficiencies. These countries do not utilize the knowledge for innovation and exporting rather they are very complacent in their economic circle. The second phase requires countries to be efficient and highly productive and enforce high level technology and education of their social capital adapt the system accordingly. These pre conditions before shifting into second stage are very important. This efficiency is also to …show more content…
88) concluded that in stimulating productivity, competition play a vital role through new firms, ideas and provoking movements of the market driven by entrepreneurs. This would not have occurred in their absence and growth would not be in the same pace as it is. He also thinks that innovation bustle deconcentrates the market.
Acs (1996) stated that one factor for the growth in the employment rate in US is the increase in the rivalry. This reduces economies of scale, increases in import competitions and provided improved structures of vertical integration.
Another econometric cram of the US telephone industry by Gort and Sung (1999) uttered that greater efficiency in the industry is produced by increased competition. They assume that efficiency can be affected by competition through multiple ways; to stimulate demand give greater incentives, capital input quality must be higher, reduction in cot of monitoring and efficient use of firm’s capital and most importantly innovation must be rivalry stimulating.
Job creation, Industrial structure and start
As a result of this ruling, it promotes competition and reduces
The Economy necessity needed to globalize US capitalism, in which the economy takes advantage of those country
With that being said, most people did things in a way that reflected the position of their state or nation. The second type of system Friedman discusses is Globalization, which became accepted in the late 1980s. Under this new
The light bulb is a great example of this. Thomas Eddison created the light bulb, and while the invention was his own, the electricity that powered the light bulb is what created the competition. When Thomas Eddison once again shot down his apprentices idea of A.C. current he ended up creating his own competition. Tesla, Edison's former apprentice, took his idea of A.C. current and found a rather wealthy man, Westinghouse, to fund his idea and get A.C. electricity powering houses, and other places. In doing this Tesla created more competition in not only electrical industry,
Henry Ford was an entrepreneur who founded the Ford Motor Company in June of 1903 and grew it into a very successful business. He achieved this through free enterprise, an economic system which places few restrictions on business activities and ownership. This system allowed Ford to begin his company without restrictions from the government either preventing him from establishing it or from limiting his success. It not only helped Ford to achieve his goals in business, but it has also helped many other entrepreneurs as well. The free enterprise system has been a necessary component in allowing people, such as Henry Ford, to start, grow, and own their own businesses.
His five stages of development range from the muscular power of the individual man, which he claims is the initial energy source; followed by harnessing of energy from domesticated animals, the agricultural revolution, which provided sustainable food sources and reserves. Stage three continues with the Industrial Revolution and finally, the harnessing of Nuclear Power. White believes controlling energy is the motivating force behind human development. Alvin Toffler’s perspective of innovation claims that society is moving too fast in the short period of time. He believes in three stages of development; the agrarian, industrial and postindustrial stages.
Verizon benefits from different types of economies of scope. 4G wireless communications act as an invisible common asset between all the telecommunication companies that offer it. Therefore, leading to cost complementarities, indicated as sufficient conditions for the presence of economies of scope. Marketing, distribution, and sales are also common sources of economies of scope that benefit Verizon. Verizon has implemented a successful strategy up to this point.
Each of the forces is determined how competitive in that industry as well as the structure of the industry. Porter’s five forces factors are consists of competitive rivalry, the threat of new entrants, the threat of substitutes, bargaining power from
Porter’s article has strong analysis and provides persuasive examples to support his argument. He carefully explains the five forces and demonstrates how they affect the competition in business. For example, when discussing about rivalry among existing competitors, Porter briefly mentions about different forms of rivalries and its intensity. After that, he analyzes the situations that lead to different level of intensity in rivalry carefully. Porter illustrates that “ The intensity of rivalry is greatest if: Competitors are numerous or are roughly equal in size and power…Industry growth is slow…
This model is considered as the most potent and useful tool and is widely used by organisations. This model deals with external factors that influence the nature of completion and internal factors how firms compete effectively to be more profitable. Porter’s 5 forces is used. Industry Rivalry : Porter (1980) reiterated that intensity of rivalry is dependent on number and size of direct competitors as numerous and/or equally balanced competitors may lead to intense competition. The rivalry for market share becomes intense when product differentiation and switching costs are
The rivalry among existing competitors The extent of rivalry between ports is the first force shaping
Threat of Substitutes 4. Bargaining Power of Buyers 5. Power vested by Suppliers 1. Competitive Rivalry: According to Porter the competitiveness in any sector is significantly increased by the number of players operating in the field and their major competencies.
In this section the author describes the theories that will support the analysis of information. In order to construct a theoretical background for the study the author chose to describe theories regarding the selection of countries. 5.1 Transaction costs theory Transaction cost theory was developed by Coase (1937) and then re-analyzed by Williamson (1979). The theory explains why companies exist and expand their activities to external environments finding out that ‘’A Transaction cost occurs when a good or service is transferred across a technologically separable interface’’.
Braverman’s deskilling concept According to Attewell (1987) Braverman starts with an argument that was made by Marx (1967), which stated that employees sell only their ability to work. Management must ensure that this ability is turned into work performed by the employees which will lead to profitability. Additionally, Braverman takes into consideration three implications that result from the argument made by Marx.
The four building blocks of competitive advantage can be used to help a company become more profitable and stay ahead of their competition. The four factors are superior efficiency, quality, innovation, customer responsiveness. All four building blocks are important to any company. However, I believe that customer responsiveness is the most important because having loyal and happy customers can make or break any company. The four building blocks can help companies grow and become the leader in their industry over their rivals.