Marcus Asay Tells How Entrepreneurship And Economic Development Complements Each Other

In any country, Entrepreneurship plays a very vital and significant role in the economic development and growth

. Both are positively and closely tied in a way that each of them complements the other like wisely. The idea about the relationship between entrepreneurship and economic development of any country has made out its way since former works of Schumpeter (1911). Having an extensive experience and innovative skills, entrepreneurs bestows growth for their firms, which in return assists in developing and modernizing economy of their countries. This thing really makes people to believe in the fact that a substantial increase in the number of entrepreneurs in a particular country entails a substantial increase in economic development. Schumpeter has depicted innovative activities and skills as the carrying and channelization of new combinations. Here follows his five combinations, as per Schumpeter, 1963 (1911), p.66):

1.The foundation and innovation of a new good that is not yet familiar with the consumers.

2.The origination of a new method of yielding and production, that has not yet been tested by the manufacturing department concerned, and by no means would be ascertained on a scientific discovery channel.

3.The initiation taken to open up a new market, in which the particular branch of the manufacturing of the country hasnt priory acceded, nor does the market.

4.The conquest or subjugation of a new source of provision of half manufactured items or raw materials, regardless of the fact whether this source has already existed or the first one to be produced.

5.The carrying and acquitting of the new firm of any industry, such as the foundation of a monopoly position or breaking-off of a monopoly position.

With the help and assistance of these innovative activities, entrepreneurs make new profitable opportunities. Such opportunities can be considered as an outcome of rise and development in productivity, which encases the clear and transparent relationship of the entrepreneurs with the development. Furthermore, the aura created by the entrepreneurs aids extremely in constructing prosperous and friendly grounds for profitable opportunities. Thus, more number of entrepreneurs means more economic development in the country, that leads to arise in the number of entrepreneurs and the whole process is known as self feeding.

by: Marcus Asay

POST COMMENT

Zhang Jindong, Suning Said The Economic Downturn On The Expansion Plans - Two Sessions, Zhang How Entrepreneurs Can Survive and Thrive Even During an Economic Downturn? Guangdong Province, Shenzhen Special Economic Zone Rules Fire Regulations - Regulations, Rules, Economic Concepts in Modern Western Culture Economical Usage Of Lights The Economics of LTL Shipping Economical Yet Luxurious Accommodation In Cannes New abrasion-resistant ceramic valve rapid development of economic good - valve, ceramic valve - Pump Industry Refurbished Hard Drives- An Economically More Viable Option Frugal Living for Tough Economic Times by Joel Driving Economically: Checklist Canadian Pharmacy- A Way of Getting Prescription Medications at Economical Prices Fuel Price Hike : A Farsighted Economic Reform