Entrepreneurship and Innovation

Entrepreneurship and Innovation

  • Submitted By: MaggieQS
  • Date Submitted: 04/10/2013 5:05 AM
  • Category: Business
  • Words: 2036
  • Page: 9
  • Views: 1

During the last few years, the entrepreneurship and innovation become increasingly popular as it is argued that they have an impact on economic development. According to Naudé (2008),the world have experienced an accelerating economic development over the past fifty years or also. During this period, the extending of entrepreneurship makes a contribution to development of economic through pushing innovation into market. Additionally, creativity and problem are two factors of innovation and entrepreneurship. In this essay, the relationship between entrepreneurship, innovation and economic development will be discussed based on theories and examples. As entrepreneurship, innovation and economic development have an influence on each other, the relationship will be discussed between each two factors in order so as to state the relationship clearly. Then, the role of creativity and problem solving in this relationship will be taken into consideration.

Entrepreneurship and innovation are closely connected as they are complementary to each other. On the one hand, from the perspective of Swayne and Tucker (1973), entrepreneurship can be described as a dynamic process of seeking ways to expand their business or start new ones. In this process, innovation plays a role as a specific tool to help entrepreneurship because it can create new demand. Drucker also provides support for the argument. He pointed out that innovation is a means that can be taken by entrepreneur to exploit opportunities for new businesses or services. (Kirby, 2003) On the other hand, as Schumpeter stated, innovation is the process of bringing new idea and technology into products. (Szirmail et al, 2011) Here, the capabilities included in entrepreneurship help the implement of this process. As Herbig et al. (1994: 46) have indicated: “Innovation requires three basic components: the infrastructure; the capital; and the entrepreneurial capacity needed to make the first two work”. For example, risk...

Similar Essays