Such an analytical approach has furnished ample insight into the interrelationship existing between knowledge, innovation and entrepreneurship. However, it goes without saying that there is a lacuna as to the understanding of the comprehensive relationship between entrepreneurship, innovation and economic growth. The understanding of the relationships between micro economic sources of growth and the consequent macroeconomic outcomes is still too nascent as to the establishment of the relationships between varied interacting forces impacting the economic growth. Hence, in an academic perspective it will be really enlightening to analyze the recent advancements into the understanding of the varied forces influencing the creation of knowledge, the promulgation and diffusion of this knowledge aided by apt innovation and the role played by entrepreneurship in the overall growth process. For its goes without saying that the primary process of knowledge creation has to be continually and commensurately supported by forces originating from innovation and entrepreneurship, which give way to mechanisms that help in the conversion of this knowledge to societal and commercial needs. It is amply relevant as the developing countries of today could learn a lot from the course followed by the developed countries in their quest for economic growth. It will also immensely help the developed countries in the sense that they are faced with the challenging responsibility of devising growth policies in a futuristic context. Thus, it is emphatically valid to attempt an understanding into the relationship existing between entrepreneurship, innovation and economic growth. Entrepreneurship and Economic Development The very fact that entrepreneurship is closely tied to economic growth is amply corroborated by the commonsensical observation and economic acumen in the sense that the crux of any innovative entrepreneurial endeavour is to convert ideas and knowledge into commercially valid economic opportunities. Entrepreneurship is the bedrock on which rest the possibilities for innovation, change and growth. In a world economy that is getting globalized at a fast pace, entrepreneurship is a sources of competitiveness in the sense that it gives way to knowledge and flexibility. With the ensuing shift in the industrial frameworks and structures vying for an augmented decentralization and minimal concentration, the entrepreneurial vigour operating at all the levels in an economy is indeed a source of viable competitiveness. In that context if one takes into consideration the accompanying technological developments and changes and a resultant augmenting global competition and economic liberalization, the very assumption that promoting entrepreneurship in a way leads to the promotion of the economic growth appears more valid today than it did in the past. The available economic, social and psychological knowledge do points towards the fact that entrepreneurship is a process that tends to be dynamic in its scope and ramifications. Though some experts may tend to think of entrepreneurship as a mechanical economic factor, yet, in reality it is far from being so (Pirich 2001, p. 14). Entrepreneurship has as much to do with change as with the choices related to a change era or process. In that context, the existing definitions of entrepreneurship delve on the functional aspects of entrepreneurship that may be allocation of the scarce resources, coordination, making decisions, innovation, capital augmentation and uncertainty management. Entrepreneurship unleashes the dormant growth
If one takes into consideration the economic developments wrenched in the last three decades, one notices a significant breakthrough as to studying the relationship between knowledge and economic growth on one hand and between innovation and economic growth on the other hand…
Hence, economy can be broadly described in terms of constructive production that leads to development of society and nations. The various tenets of economic development focus on people’s welfare and promote employment by supporting market led business activities through available resources, including human capital, to help in development of society.
From individual level to organizational level to the national level, everyone seeks some level of economic development. Once economic development comes about, it is expected that the general wellbeing of people will improve. With economic development, people are able to access not their needs but also to a very large extent, their wants also.
Today, since all regions aim to be the ‘next Silicon Valley’ and tend to support innovative firms, it has become a topic of interest to understand the knowledge economy in which the achievement of firms depend on how well they can manage innovation and technological changes.
Even as the United States has managed to find a modicum of stability, Europe is experiencing a sovereign debt crisis, with countries such as Greece and Italy falling into severe economic hardship. Within these contexts of understanding, the nature of economic development has come to the forefront of social and political concerns.
To create value, unmet needs and opportunities are identified and ways to meet these needs are developed. There is a strong link between entrepreneurship, innovation, and economic development. This link arises from the fact that less entrepreneurship means fewer innovations, which in turn business development negatively.
There are three major roles of entrepreneurship which are, risk seeking, innovativeness and opportunity seeking. Entrepreneurship can help to develop new business, which in turn creates more employment, strengthens competition, and thus increases the productivity of organizations (Arena, 2002).
All job adverts require innovative and creative individuals. Institutions offer entrepreneurship lessons as part of their curriculum. These terms have transformed the business world. No single business wants to remain at the same place as the there is stiff competition.
of entrepreneurship often narrate the practical roles of entrepreneurs which include harmonization, creativity, improbability, capital funding, decision making, proprietorship and resource distribution. There are three major roles of entrepreneurship which are, risk seeking,
The main area of focus is the implication that such a relationship has to the individuals or an organization. There is a personal analysis on how the relationship influences risk taking and personal strengths in relation to
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