Entrepreneurship Assignment: Economic Growth and Government Role

This report delves into the significant effects of entrepreneurship on a country's economic growth and development, emphasizing the crucial role of government in fostering entrepreneurial activity through various policy measures. It highlights the importance of promoting innovation, competition, and entrepreneurship to reduce unemployment and stimulate economic expansion. The discussion covers how governments support small business development and entrepreneurial ecosystems, often aiming to replicate the success of places like Silicon Valley. The report explores different policy approaches, including traditional and growth-oriented strategies, and examines the role of government ministers in driving innovation. It differentiates between value-adding and non-value-adding activities within businesses, underscoring the importance of efficiency and improvement. The conclusion emphasizes that entrepreneurship is a key focus of government policies, leading to economic growth and development, and it recommends that governments prioritize entrepreneurial activity by developing effective policies and providing strong leadership.

Running head: ENTREPRENEURSHIP ASSIGNMENT
Entrepreneurship Assignment
Name of the Student
Name of the University
Author Note

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Executive Summary
This report aims at looking into the effects that entrepreneurship has on the economic growth and
development of a country and how the government plays a significant role in promoting
entrepreneurship in the country through various policy measures. The report concludes that
entrepreneurship must be supported and polies should be devised to promote this activity further.

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Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Conclusion.......................................................................................................................................3

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Introduction
Entrepreneurship has played a vital role in the growth and development of economies by
being a means by which economic growth can be boosted and employment can be created. It has
given way to lead to new research and field of study through advancements in technology.
Governments have also played an active part in boosting entrepreneurship so as to lead to a fast
growing economy. The following sections discusses the contribution of entrepreneurship and the
role played by the government to develop the same.
Discussion
Several policy makers believe that the promotion of innovation, competition and
entrepreneurship will result in economic growth. Therefore to reduce unemployment, strategies
should be devised to encourage entrepreneurship among the youth and several government
policies have been devised around it. There has been growing interest from the side of the
government towards small business developments and entrepreneurship as a potential solution to
control unemployment and economic growth (Moses 2017). This has given rise to a new field of
research which government policies support as government over the world want to replicate the
Silicon Valley the growth found in entrepreneurial ecosystems.
Entrepreneurial ecosystems are conditions which foster economic prosperity and lead to
the creation of welfare by bringing people together. Government policies should be aimed to
avoid direct intervention that would affect change and this can be done by either the traditional
approach or the growth oriented approach. The policies try to increase the total number of firms
using start-up programs, investment in research and development, venturing in capital financing
and technological transfer (Dorin and Alexandru 2014). Transactional natured programs include

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support programs, grants, business or technology incubators and tax incentives. These programs
cannot guarantee success like direct intervention. Conversely, growth oriented approach focuses
on the growth of the firms through entrepreneurial relationship and in turn understand their
networks and ways to create expansion at international, national and local levels (Acs, Autio and
Szerb 2014). They should aim at linking customers, suppliers and others playing a key role
within the production system. Government ministers also have a crucial role to play in causing
innovation and enterprise growth. These ministers direct the government agencies and
departments to develop effective policies and focus on the problems faced.
Activities that add some value to the customers are value adding activities. They bring
about change in the form, function or fit of a product like the product designing, raw material
ordering, engineering drawing, innovation, decisions and more services that customers would be
willing to pay for. Non value services on the other hand include inspection, testing, reviewing,
reporting, counting, filling information, getting approval from several heads, reporting which a
customer does not specify and are usually unwilling to pay for (Cavusgil and Knight 2015).
These activities are identified as efficiency and improvement initiatives using management
techniques.
Conclusion
To sum up, entrepreneurship has been included in most government policies over the
years as it yields economic growth and development along with reduction in unemployment. The
governments should make entrepreneurial activity a focus in the policy making by developing
policies and providing for leadership that is efficient and strong.

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References
Acs, Z.J., Autio, E. and Szerb, L., 2014. National systems of entrepreneurship: Measurement
issues and policy implications. Research Policy, 43(3), pp.476-494.
Cavusgil, S.T. and Knight, G., 2015. The born global firm: An entrepreneurial and capabilities
perspective on early and rapid internationalization. Journal of International Business
Studies, 46(1), pp.3-16.
Dorin, C. and Alexandru, G.S., 2014. Dinamics of the entrepreneurship concept. Literature
review. The Annals of the University of Oradea.
Gerrard, N., Orji, U.B., Akpan, E.B. and Moses, A., 2017. Politics and Entrepreneurship in a
Developing Economy. Covenant Journal of Entrepreneurship, 1(1).