ENTREPRENEURSHIP

Entrepreneurship & Economic Development



Executive Summary

The basic aim of the study is to highlight the importance of the entrepreneurship for economic development. It is a fact that entrepreneurship has no limits and unknown to boundaries. The report will cover the in-depth analysis of entrepreneurship and highlights its impact on economic development. The report will present literature review to highlight the importance of entrepreneurship. The vast majority of modern macroeconomics literature deals with issues of economic growth and development as a problem of capital accumulation and technological progress. But this limitation is deficient because it leaves out the role of the entrepreneur as the main agent of promoting economic progress. According to researcher, the entrepreneur is inspired by a business idea that he or she intends to accomplish with the help of borrowed money. The entrepreneur as "idealized type" is a heroic figure who chooses the battlefield in the business world in order to live the spirit of conquest and its desire for domination.

Entrepreneurship & Economic Development

Introduction

The entrepreneurship has a significant value in economic development. The entrepreneurship means innovations in existing products or services or introduction of a new product in the market. The entrepreneurship is not limited to products of final consumer but it also covers production process and production machinery. It is obvious that the new and different production process or machinery will lead to new products or will assist in adding new features or design in the existing products. The entrepreneurship that leads to change in production process or machinery may lead to decline in cost associated to production. This will help the entrepreneur to produce the same or better product at relatively lower cost and gives competitive advantage. The entrepreneurship may lead to convenient production process or a production process that consume less time. In the light of aforementioned points it can be seen that the entrepreneurship directly generates economic activity (Hitt et.al, 2001, pp. 486).

Aims of Study

The basic aim of the study is to highlight the importance of the entrepreneurship for economic development. It is a fact that entrepreneurship has no limits and unknown to boundaries. If a person or corporation produces something which is new to world then it will easily get recognition on global ground. For example, the introduction of iPhone by Apple was a successful innovation and have loyal customer around the globe. The report will cover the in-depth analysis of entrepreneurship and highlights its impact on economic development. The report will present literature review to highlight the importance of entrepreneurship. The advantages and disadvantages of international entrepreneurship and economic development will be covered to give a brief overview of the role of international entrepreneurship on economic development. The report will discuss the relationships between entrepreneurship, economic growth and unemployment.

Literature Review

The research and literature on Entrepreneurship point us several reasons why people engage in this activity. There are two reasons which are important to mention to elaborate the concept of entrepreneurship.

Businesses that open by necessity of ...