ENTREPRENUERSHIP DEVELOPMENT

BBA/18/057
GUIRO MANASSE DAVID

ASSIGNMENT

TOPIC : Entreprenuers are innovative and brain behind economic successes in

Over the past several decades the role of entrepreneurship in economic development has
become an essential factor of employment, and innovations bring enhanced the market
competition. Entrepreneurship is the primary factor in the growth of economies. Each new
business launched has an impact on an economy and affect people around it. The Theory
of Kirzner (1973-2005) about entrepreneurship explains how the improvement of economic
health affects individuals in the first world. The creation of new goods and services improves
the quality of living of companies and individuals.
Entrepreneurs acquire capital from their equity sources or loans from banks to build their
business which adds value to the creation of wealth, influencing the economy and industrial
structure of a country directly.
Entrepreneurship helps to eliminate disparities between regions through an implementation
of industry in countryside and areas less developed. The growth of industries and companies
in various fields led to the development of services such as road, public transportations,
health, education, and entertainment. The implementation of those industrial activities
resulted in the development of a more vibrant economy.
Entrepreneurship Spreads Economic Power
The power of economy is, in fact, the natural consequence of industrial and commercial
activities. The industrial development at times builds to a concentration of economic power of
only a few, while entrepreneurship and the growth of companies acts to counter that
concentration. Enterprise is a force that multiplies the players of an economy and reduces
the concentration of economic power.
Entrepreneurs Create and Distribute Wealth
New businesses stimulate the fair redistribution of wealth and incomes for the interest of the
country through a large population covering a larger geographical area and thus offering
benefits to larger sections of society. Entrepreneurship leads to the emergence of secondary
activities and therefore allows a multiplier effect in the economy.
Entrepreneurs are always seeking new opportunities. They explore and exploit various
possibilities encouraging the active mobilization of funds and skills. They contribute to new
products and services and develop new markets which grow an economy.
An enterprise contributes to increasing the Gross Domestic Product (GDP) and income per
resident, which results in economic growth.
Improving the quality of life of a population is a characteristic of a country’s economic
development. Entrepreneurs play a vital role in improving the quality of our communities and
individuals’ lifestyles; they adopt the last innovations in the production of vast and various
goods and services on a large-scale to reduce the cost. The goal is to offer a better product
or service at a lower cost.
Worldwide entrepreneurs also contribute to a country’s exports and improves the trade
balance which is important in economic development.
Entrepreneurship Encourages Innovation
An entrepreneur is first of all someone who has new ideas, who creates and innovates to
solve a problem. An entrepreneur embraces change and tries to maximize profits while
innovating. When a company approaches business driven by the evolution of technology, it
encourages the economic development of the country.
Supporting entrepreneurship in a motivating, innovating and stimulating environment will
result in economic development. It should be the primary concern of decision-makers, which
also have the responsibility to lead and channel entrepreneurship projects through sectors
that are part of the development strategy.
New technologies promote efficiency.
The ability to turn ideas into new products and services that people need is the fount of
prosperity for any developed country. Economic growth, generally speaking, is driven by new
technologies and their creative applications. Periods of rapid innovation historically have
been accompanied by periods of strong economic growth. The impetus of innovation is the
greatest natural resource of all: the human mind. Creating innovative products and solutions
requires an educated population and an environment where collaborative work can take
place. In addition to being good for business, education increases workforce creativity and
quality of life.
Addressing environmental challenges.
Innovation is (and will continue to be) crucial when it comes to addressing the enormous
environmental challenges we face today: combating climate change, lowering global
greenhouse gas emissions, and preserving biodiversity in the environment. Without power
for extended periods of time, commerce comes to a halt. Without water, we cannot live.
Reliable access to these innovations (such as irrigation technology, electricity, and urban
infrastructure) increases productivity and enhances economic development.
Innovation impacts socio-economic objectives.
Innovative business practices create efficiency and conserve resources. Innovation in
agriculture is especially relevant for addressing socioeconomic challenges (in addition to
encouraging economic growth). In the U.S., for instance, we waste billions of dollars annually
due to inefficiencies and uncompetitive practices in our healthcare system. Hopefully, new
ideas and innovations in the future will address these problems, resulting in further reforms.
When this occurs, Americans’ overall health and quality of life will benefit, and so will our
economy if our wasteful healthcare costs also decrease.
Innovation happens where there is competition.
In essence, there is a positive feedback loop among innovation, entrepreneurship, and
economic development.
New and growing businesses represent the principal sources of job creation and innovative
activity in an economy, two factors that generally result in the rising standards of living for all.
However, it’s important to understand that entrepreneurship and innovation are dependent
on access and participation. For entrepreneurs to bring new ideas to life, they need access to
education and a level-playing field on which to compete. In this vein, the role of government
leaders and public policy is to create conditions that allow more entrepreneurs to start
businesses by implementing policies which nurture that environment so those businesses
can grow. Economic growth suffers when entrepreneurial activity is unevenly spread socio-
economically, demographically, and geographically. Under the right conditions,
entrepreneurs have an incredible power: they help regional areas prosper economically, and
they also serve society as they help engineer innovative solutions to problems and
challenges.