INNOVATION IN ENTREPRENEURS

Entrepreneurship and Innovation

Contribution of Schumpeter to Entrepreneurship and Innovation1

Schumpeter Mark I2

Schumpeter Mark II3

High Growth Firms or Gazelles' (OECD 2008)3

The financial Sources for Entrepreneurs and Innovation5

Financial markets and institutions5

National Financial Sector6

Internal finance with retained earning6

Bank Loans6

Private Equity Investors7

Factors Affecting the Collaborative Innovation of Firms7

Cooperation with Parties8

Effects of the Type of Innovation8

Effects of using Patent9

Factors Influencing the Academic Entrepreneurs9

Gender Discrimination and Age Factor10

Research Market Structure10

Policy Intervention in Entrepreneurship and Innovation10

References12

Entrepreneurship and Innovation

Contribution of Schumpeter to Entrepreneurship and Innovation

Entrepreneurship has been treated as a field of academic study mainly focused on sociology and economics. It is the combination of organization studies and business strategy as well. It is not like that the interest in entrepreneurship had started with Schumpeter. The threads and the concepts of a split literature were pulled together through his contributions towards it (Becker & Knudsen, 2004 pp. 1-3).

Entrepreneur is a phenomenon of multi-faced nature, which comprises of the two main processes related to the business. The start-up of a new company together with the process of carrying the existing business with the employment of strategic initiatives is comprehended together (Becker & Knudsen, 2004 pp. 1-3).

The contribution of Schumpeter had treated the entrepreneur in terms of economic development by means of carrying the set of new combinations in favour of the economic concerns of the business strategies. The main concerns were related to introducing the goods quality or new goods, together with the production methods. He had further emphasized the new market opening, and introduced the better supply of raw materials or the goods that are half-manufactured in the development of a new organization (Sciascia, & Vita, 2004 pp. 1-26).

The Schumpeter had visualized the market to be in equilibrium state and a balanced condition of entrepreneur. He made it possible to move the disrupting aspects towards the equilibrium of the market. The contribution of Schumpeter is regarded as the innovation of existing resources rather than considering the new inventions. According to him, the entrepreneurs may be inventors but the innovative efforts are nor reliant upon any inventing activity. The entrepreneurs are not the capitalists only, but they are the independent businessmen with designated job descriptions, like the managers, the board of directors and many others. It means that the entrepreneurs are the innovators who are really involved in the functioning of the activities they are expected to perform (Sciascia & Vita, 2004 pp. 1-26).

He had described the innovations of the entrepreneurs and their presence as an important but smaller portion of the population. It is true that only small number of people move towards the innovations instead of all-time availability of the resources in the market. People are usually worried about the disruptions in the market economy with their efforts to innovate the resources allocated for the development of the business. Therefore, they do not prefer the disturbances created by the changes as institutional barriers. According to Schumpeter, the scarcity and the paucity in the entrepreneurs should be controlled by providing mental freedom to the ...