The Role of Entrepreneurship in Economic Growth: A Management Report

This report delves into the multifaceted world of entrepreneurship, exploring its definition as a dynamic process driven by innovation and responsiveness to the external environment. It highlights the crucial role of entrepreneurs in job creation, economic growth, and community development. The report examines the importance of entrepreneurship, emphasizing its positive impact on personal, social, and economic development. It also discusses the attributes of successful entrepreneurs, such as risk-taking, self-discipline, integrity, persistence, a clear sense of direction, and decisiveness. The report concludes by emphasizing the need to encourage entrepreneurship in today's society, recognizing its potential to drive innovation, promote economic growth, and improve the quality of life. It provides a comprehensive overview of the key elements of entrepreneurship and its significance in the modern business landscape.

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Entrepreneurship and Innovation

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Table of Contents
Introduction................................................................................................................................2
Importance of Entrepreneurship.................................................................................................2
Should Entrepreneurship be encouraged....................................................................................4
Attributes of entrepreneurship....................................................................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................7

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Introduction
Entrepreneurship is a complex phenomenon where entrepreneur practices and actions are
intended towards set vision with innovation response to the external environment (Anderson,
Dodd and Jack, 2010). The process of entrepreneurship creates benefit at both levels i.e.
personal and social. An individual gets benefitted with the respective growth, thrill and
challenge initiated by entrepreneurship practices whereas the social issues are eliminated with
the formation of capital as well as promoting employees.
The contribution to real economic growth is possible only due to various entrepreneurship
practices where the investment opportunities are being discovered under various conditions
of planning, innovating and uncertainty.
Importance of Entrepreneurship
Entrepreneurship work in the dynamic environment with creation of incremental wealth,
innovation and value enhancing the growth of social welfare (Hitt et al, 2011). With the help
of entrepreneurship process, the society and economy shifts to the state of progress and
prosperity to the greatest possible extent. Later on, Entrepreneurial firms lead to creation of
jobs and contribute to economic growth while shaping business ecosystem, commercializing
new technologies, setting up of new market and other aspects in exciting new ways.
The significance of entrepreneurship is outlined below with having a positive impact on
personal, society and economic development. It includes –
Creation of job opportunities and generation of employees
In the process of entrepreneurship, an individual becomes a job creator rather than a job
seeker. The whole world is now globalised leading many people to be unemployed and thus
only the entrepreneur can help in identifying the source of employment that is one of the key
problems in developing nation (Shepherd and Patzelt, 2011). Hence, it can be said that there
is a rise in employment opportunities with the growth of an enterprise that diminishes the
concern of unemployment in the nation-state.

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Innovation
Entrepreneurs nurture innovation and also called to be an incubator of innovation. With the
help of their creative ideas, they provide economy a new technology, venture, technology,
market that raise the standard of living of individual as well as gross domestic products
(Scheepers, Hough and Bloom, 2008). The stimulation of associated firms or sectors that
assist the new venture add to further economic development.
Community development
Entrepreneurship also leads to more stability and higher quality of community life.
Entrepreneur invests in several projects concerned with community and provide financial
provision to local charities that also help in the development of their own venture. It
encourages abundant greater level of home ownership, retail facilities, lower slums, sanitation
standards, recreation, more spending on education and religious activities.
Enhance standard of living
In relation to improvement in standards of living, there is rise in purchasing power and
income due to various initiatives carried out by an individual concerning entrepreneurial
activities (Dahan et al, 2010). If there is an increase in demand, the industrial activities and
operation automatically boosted and this makes enterprise to attain large scale production
with coordination to modern approaches of marketing. Moreover, entrepreneur is capable to
provide enormous kinds of a product of various sorts with help of their innovation. This
brings a positive impact on community and society and this improves the standard of living
of people of a nation.
Promotes research and development
In entrepreneurship process, the innovative ideas of goods and services are experienced with
various experimentation. With research institutions and universities, entrepreneurship
provides financial provision for research and development. This encourages overall
development and research in the economy.
Entrepreneurs add to National Income
It is possible that existing firms and business may confined to scope of existing markets,
however, entrepreneur facilitates new markets with improved products, offering and
technologies and thus new wealth is formed. In addition, the cascading effect of improved
employment and greater earnings also add to superior national earnings and more government

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spending (Christensen Hughes and Rog, 2008). However, government may soften this blow
by readdressing excess wealth to retain workers when the above practices make existing
players redundant.
Entrepreneurs facilitate Social Change
With the help of unique offerings of goods and services, entrepreneur practices break the
tradition and reduce dependence on obsolete system and technologies. Considering all, there
will be more positive results in area of economic freedom, greater morale and improved
quality of life.
Should Entrepreneurship be encouraged
As per general trend in the society, an individual is encouraged to choose profession that have
some reputation in the community and religion and above all offer a lot of money. This
profession includes lawyers, doctors, lawyers and so on. However, only few of them wants to
intend towards entrepreneur.
Entrepreneurship, in general, are the most contributing members of the society, however, they
do not contribute to the society in a well-dressed way. In my opinion, they surely need to be
encouraged in today society due to various reasons.
One of the primary and foremost reason is that entrepreneur can do that thing which can
never be done by any of doctor or lawyer that is creation of jobs (Audretsch and Pena-
Legazkue, 2012). Entrepreneur carries out an innovative idea that helps them in shaping of a
venture and when the venture is fully nourished, it builds position and jobs for others. Hence,
with entrepreneur efforts, more jobs are created in a society in ordinary means.
Another reason for entrepreneur encouragement is that they have the capability to change
lives of people when the life of people becomes monotonous and ceases to progress. There
are various examples of entrepreneur that have changed the life of people and thus in order to
keep life-changing better, it is imperative to plant and water the seeds of entrepreneur in the
youth and society.
The other obvious reason in this dynamic world is the innovation they bring having the
capability to change lives. Due to globalisation and advancement in IT technology, different

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ideas are coming to surface to bring innovation that encourages and transform the way to do
things and live.
Other than this, it is also important to encourage entrepreneurship so as to promote economic
growth. New ideas are nurtured with the practices of entrepreneurship and on the basis of
these ideas, a business automatically helps in economic growth (Acs, Audretsch and
Lehmann, 2013). It also helps in eliminating economic depression to a minimal extent that
has possibility to harm the society. Hence, this gives the chance of converting in an economic
boom anytime.
Attributes of entrepreneurship
After years if personal coaching and experiences, various related qualities are shared by
entrepreneurs that make them prosperous. These all attributes are erudite and rise during the
entrepreneurial practice. One of the key attributes of an entrepreneur is the ability to take
risks as starting a venture always involves a considerable amount of risks of failure. Hence,
capacity to take the risk is necessary for an entrepreneur.
The other attribute in successful entrepreneurship possesses self-discipline. This attribute is
the single most significant quality for achievement in both business and life. This also makes
the variance amid successful entrepreneurs and failures is that successful entrepreneurs make
routine of doing the things that failure do not alike to do (Bae et al, 2014). Integrity is also an
attribute considering successful entrepreneurship. Be perfectly honest in everything, every
activity and transaction help in building good bond when it comes to business. It is also true
that all successful venture is based on trust and an entrepreneur success is identified by the
number of people they trust and lend you money and also help in a difficult time. Hence, an
entrepreneur character depends on the total of integrity exercise during entrepreneurship
roles.
The third attribute is the Persistence that also known to be as an iron quality of a successful
entrepreneur. It is an indispensable quality that comes with great achievement in life. The
courage to continue in the face of adversity and dissatisfaction have an upward quest towards
success. It also considered as the greatest assets of an entrepreneur and a true measure in
belief and ability to succeed.

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The fourth attribute is related with the clear sense of direction as the market is changing
rapidly and an entrepreneur intends to devote more time in planning and thinking for the
future as it is important to set clear vision at every part of the business. Moreover, it is also
the most important responsibility to an entrepreneur to build a clear sense of direction in the
work.
The last attribute is associated to their trait of being decisive and action-oriented.
Entrepreneurs need to take decision very quickly and they also make discipline themselves to
take action and take in account necessary decisions they have prepared. They also attain
essential feedback from their actions. The key to triumph is that successful people are
decisive and they try far more things than other individuals do.
Conclusion
Considering all above, it can be said that globalisation has brought a structural change in the
entrepreneurship and it is important for the society to nurture more entrepreneurs as they are
considered as positive force in the development of society and economy. The entrepreneurial
process is composed of numerous stages with each stage consisting of various opportunities
in which a firm uses to develop.

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References
Acs, Z.J., Audretsch, D.B. and Lehmann, E.E. (2013) The knowledge spillover theory of
entrepreneurship. Small Business Economics, 41(4), pp.757-774.
Anderson, A.R., Dodd, S.D. and Jack, S. (2010) Network practices and entrepreneurial
growth. Scandinavian Journal of Management, 26(2), pp.121-133.
Audretsch, D.B. and Peña-Legazkue, I. (2012) Entrepreneurial activity and regional
competitiveness: an introduction to the special issue. Small Business Economics, 39(3),
pp.531-537.
Bae, T.J., Qian, S., Miao, C. and Fiet, J.O. (2014) The relationship between entrepreneurship
education and entrepreneurial intentions: A meta–analytic review. Entrepreneurship theory
and practice, 38(2), pp.217-254.
Christensen Hughes, J. and Rog, E. (2008) Talent management: A strategy for improving
employee recruitment, retention and engagement within hospitality
organizations. International Journal of Contemporary Hospitality Management, 20(7),
pp.743-757.
Dahan, N.M., Doh, J.P., Oetzel, J. and Yaziji, M. (2010) Corporate-NGO collaboration: Co-
creating new business models for developing markets. Long range planning, 43(2-3), pp.326-
342.
Hitt, M.A., Ireland, R.D., Sirmon, D.G. and Trahms, C.A. (2011) Strategic entrepreneurship:
creating value for individuals, organizations, and society. Academy of management
perspectives, 25(2), pp.57-75.
Scheepers, M.J., Hough, J. and Bloom, J.Z. (2008) Nurturing the corporate entrepreneurship
capability. Southern African Business Review, 12(3), pp.50-75.
Shepherd, D.A. and Patzelt, H. (2011) The new field of sustainable entrepreneurship:
Studying entrepreneurial action linking “what is to be sustained” with “what is to be
developed”. Entrepreneurship Theory and Practice, 35(1), pp.137-163.