Relationship Between Entrepreneurship And Entrepreneurship

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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

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