Entrepreneurship is a key factor in economic growth, innovation and growth of enterprises and businesses. Modern economic methods, market cultures and available of new technologies have helped entrepreneurs in a big way. These help them to bring the capital funds, resources and persons together to establish the enterprise. In this chapter, you will learn about the role of an entrepreneur in economic development of the country. You will also learn how entrepreneurs act as an innovator in the economic growth and help in the generation of employment opportunities, in complementing and supplementing economic growth.
INTRODUCTION: “Entrepreneur is the person who comes up with a business proposal to start a venture taking into consideration the constraints like human resources, cost, demand after studying the whole market and identifying the gap and understanding his own skills and competencies. The whole process altogether is called Entrepreneurship” Any idea that have to be commercialized into a business have to go through a series of steps before it could go live. The person first has to come up with a business plan. A B-Plan is a written document of one’s business idea and what he is planned to do and how to implement or go forward with the same. This business plan will be written after understanding one’s own competencies and about the industry he/she
Originally, the word ‘entrepreneur’ comes from the old French word ‘entreprendre’, meaning ‘to begin something, to undertake’. Though the terms ‘entrepreneur’ and ‘entrepreneurship’ sound alike and are sometimes used interchangeably, they actually mean different things. An entrepreneur can simply be described as a person that starts, operates and assumes risk of running an enterprise. Entrepreneurship, however, is the whole creation process of the enterprise, including originality, capabilities, skills and possible difficulties. An entrepreneur always precedes entrepreneurship.
Entrepreneurs are described as the value adders, who represents the prosperity of the nation and its prospective to produce employment; they are the driving force of any nation. All the same, an entrepreneur owns the following qualities: 1. They are alert to new opportunities, resourceful and energetic. An entrepreneur must and is able to bend in with varying situations. Also, they are enthusiastic to believe the risks in expansion and change.
An entrepreneur uses creative talents to develop new things and exploit new opportunities in the markets. Choose the best option: An entrepreneur finalizes a concept or an idea only after considering a variety of options. He analyses their strengths and weaknesses by applying different techniques. He tests the product's applicability, supplements it with empirical findings, and then chooses the best alternative. Then he applies his ideas in practice.
In order to be an entrepreneur, an individual must create something new and different from the existing products/services or of transmuted value. The success of any Innovation is built on the strengths and work of the entrepreneur executing it. In terms of (Schumpeter and Clemence, 1989) an entrepreneur plays a major role in the ‘Creative destruction’ process, by constantly assimilating unused knowledge in order to set up improved production functions and forms for the production and marketing the new products. Thus for any entrepreneur to demonstrate innovation as its key strength, it must execute the concept of the idea into practical usage by infusing sufficient resources such as capital and undivided support of the institutional leadership. (Bessant and Tidd, 2007) discuss in book Innovation and entrepreneurship talk about how Entrepreneurship and innovation can’t be assumed to be all about a bright idea.
In fact, until the 1950s the majority of definitions and references to entrepreneurship had come from economists. For example, Cantillon (1971), just mentioned; Jean Baptiste Say (1845), the renowned French economists; and Joseph Schumpeter (1934), a twentieth-century economic genius, all wrote about entrepreneurs and its impact on economic development. Entrepreneurship as a topic for discussion and analysis was introduced by the economists of the eighteenth century, and it continued to attract the interests of economists in the nineteenth century. In the twentieth century, the word became synonymous or at least closely linked with free enterprise and capitalism. Also, it was generally recognized that entrepreneurs serve as agents of change; provide creative, innovative ideas for business enterprises; and help business grow and become profitable (Kuratko & Hodgetts, 2007) to regain a competitive lead in the world economy (Baumol et al, 2007).
An entrepreneur is someone who should be willing to handle the danger of a business endeavor where there is a noteworthy chance for making profit. Entrepreneurship is essentially the act of establishing a business keeping in mind the end goal to make profit on a freshly discovered opening in the market. Entrepreneurship is a testing job as a number of businesses which begin fail to be successful. Entrepreneurship has numerous instabilities particularly when new goods are made for which there is no market. Entrepreneurship influences economic growth in different ways.
Task 1 Introduction Entrepreneurs are persons who manage capital, land, labour, and cost of capital for manufacturing and selling the products for earning profits (Gasparski, 2011). Entrepreneurs indulge in business because they expect to earn high profits from the business. The Entrepreneur is also defined as a person who follows business actions in the industrial world. These persons have a scarcity of resources, yet ready to take risks to earn high profits. As everyone knows that to start up a business a person needs resources, capital, and manpower which are key elements to start any business.
This essay will attempt to highlight the factors that influence entrepreneurship, innovation and economic development with the aid of theoretical models. It will also state how creativity and problem solving lead to innovation and its links with economic development. Entrepreneurship has been defined by different theorists over the past few decades. The first ever person who brought the theory of entrepreneurship to life was Richard Cantillon (L’essai sur la nature de commerce en general – Essay on the Nature of Trade in general). His book defined the entrepreneur as a risk-bearer, or anyone who runs a business.