Entrepreneurship, Innovation and Economic Development
Entrepreneurship, Innovation and Economic Development
“‘Discuss the relationship between entrepreneurship, innovation and economic development. What role do creativity and problem solving play in this relationship?”
In today’s world, entrepreneurship and innovation are becoming increasingly crucial as drivers of the economy, especially so in the developing economies where trade plays a major part in generating revenue. In China, small-and medium-sized enterprises (SMEs) account for almost 70 percent of all Chinese exports, a share that reflects the above statement about the importance of entrepreneurship to economic robustness. Some questions may be raised on whether entrepreneurship lead to economic development or is the latter a prerequisite to facilitate the entrepreneurship and innovation processes instead. This essay , while recognizing the need of certain institutions and framework to be in place and functioning well in order to ease the functioning of business activities, takes the stand that entrepreneurship and innovation leads to economic development more often than of the other way around.
Realising its potential, governments’ initiatives have largely been centred on encouraging more entrepreneurs to start up a venture or to expand their existing businesses. In the 2013 National Budget, the Malaysian Government has allocated a fund of RM 1 billion under the SME Development Scheme (News Straits Times 2012). This very government has also recently launched SME Masterplan (2012 – 2020). These initiatives are aimed at supporting and accelerating the growth and development of SME-s across all sectors of the economy.
In evaluation though, more start-ups and new business ventures in an economy does not necessarily translate into economic growth and improvement. In order for the desired economic aims to be achieved, we need to ensure that the start-ups and existing businesses thrive and not fail, for doomed enterprises more often than not suck
“‘Discuss the relationship between entrepreneurship, innovation and economic development. What role do creativity and problem solving play in this relationship?”
In today’s world, entrepreneurship and innovation are becoming increasingly crucial as drivers of the economy, especially so in the developing economies where trade plays a major part in generating revenue. In China, small-and medium-sized enterprises (SMEs) account for almost 70 percent of all Chinese exports, a share that reflects the above statement about the importance of entrepreneurship to economic robustness. Some questions may be raised on whether entrepreneurship lead to economic development or is the latter a prerequisite to facilitate the entrepreneurship and innovation processes instead. This essay , while recognizing the need of certain institutions and framework to be in place and functioning well in order to ease the functioning of business activities, takes the stand that entrepreneurship and innovation leads to economic development more often than of the other way around.
Realising its potential, governments’ initiatives have largely been centred on encouraging more entrepreneurs to start up a venture or to expand their existing businesses. In the 2013 National Budget, the Malaysian Government has allocated a fund of RM 1 billion under the SME Development Scheme (News Straits Times 2012). This very government has also recently launched SME Masterplan (2012 – 2020). These initiatives are aimed at supporting and accelerating the growth and development of SME-s across all sectors of the economy.
In evaluation though, more start-ups and new business ventures in an economy does not necessarily translate into economic growth and improvement. In order for the desired economic aims to be achieved, we need to ensure that the start-ups and existing businesses thrive and not fail, for doomed enterprises more often than not suck
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