relationship between entrepreneurship, innovation and economic development
Discuss the relationship between entrepreneurship, innovation and economic development. What role do creativity and problem solving play in this relationship? Refer to both theory and examples from the business world to support your discussion.
From 18th century, economists have paid great attention to the effect which entrepreneurship and innovation have on the development of economy (Van Dijk, 1999). Hisrich, Peters and Shepherd (2010) have discussed that an entrepreneur can be defined as an individual who has the ability to manage the limited resources more effective, applies creativity and innovation in the marketplace in order to appropriate profits and is keen to bear the uncertain condition. Since it can act to integrate three factors of production in productive ways to cater to the needs of characters, several economists regard it as a special factor of production besides labor, capital and land (Kirby, 2003). In addition, innovation means not only the creation of better or more effective products, technologies or ideas which are accepted by markets, but also the existing products of which quality are improved to satisfy consumers (Shane and Ulrich, 2004). It seems that both entrepreneurship and innovation rank high on promoting the development of economy. Accordingly, this essay will discuss the close relationship between entrepreneurship, innovation and economic development in small firms with a few specific examples. Besides, as two key factors in this relationship, creativity and problem solving will be also discussed in this essay.
In general, innovation has been regarded as one of the most momentous factors to the whole process of entrepreneurship. Similarly, entrepreneurship has become one of the most significant factors to innovation. It is said by Castillo (2009) that neither entrepreneurs nor innovators has considered themselves as each other, though, entrepreneurship requires innovation and vice versa. Usually, entrepreneurs desire to
From 18th century, economists have paid great attention to the effect which entrepreneurship and innovation have on the development of economy (Van Dijk, 1999). Hisrich, Peters and Shepherd (2010) have discussed that an entrepreneur can be defined as an individual who has the ability to manage the limited resources more effective, applies creativity and innovation in the marketplace in order to appropriate profits and is keen to bear the uncertain condition. Since it can act to integrate three factors of production in productive ways to cater to the needs of characters, several economists regard it as a special factor of production besides labor, capital and land (Kirby, 2003). In addition, innovation means not only the creation of better or more effective products, technologies or ideas which are accepted by markets, but also the existing products of which quality are improved to satisfy consumers (Shane and Ulrich, 2004). It seems that both entrepreneurship and innovation rank high on promoting the development of economy. Accordingly, this essay will discuss the close relationship between entrepreneurship, innovation and economic development in small firms with a few specific examples. Besides, as two key factors in this relationship, creativity and problem solving will be also discussed in this essay.
In general, innovation has been regarded as one of the most momentous factors to the whole process of entrepreneurship. Similarly, entrepreneurship has become one of the most significant factors to innovation. It is said by Castillo (2009) that neither entrepreneurs nor innovators has considered themselves as each other, though, entrepreneurship requires innovation and vice versa. Usually, entrepreneurs desire to