the relationship between entrepreneurship, innovation and economic development.
Discuss the relationship between entrepreneurship, innovation and economic development. What role does sustainability play in this relationship? Refer to both theories and examples from the business world to support your discussion.
1. Introduction
Entrepreneurship firstly arise from Richard Cantillon’s Essai sur la Nature du Commerce en Général, originally refers to the behavior people aim to become an entrepreneur. Currently, it is an increasingly heated issue worldwide because its power on driving innovation, productivity, job creation and economic development (Fisher, 2010). Schumpeter (1934) defined entrepreneurship as a creative response to potential opportunity and innovation means creating something original, innovative and significant that makes difference in a market or society (Frankelius, 2009). With respect to the relationship between entrepreneurship, innovation and economic development, Schumpeter (1934) highlights the role of entrepreneurship is the catalyst of economic development through innovation. However, recent research discovered that the level of economic development, in turn, has significant influence on entrepreneurship and innovation. Hence, in my opinion, entrepreneurship has important positive effects on economic development in terms of innovation, whereas economic development also affects entrepreneurship and innovation. At the same time, sustainability, which is always combined with entrepreneurship, innovation and economic development frequently arises in government policies or academic research, is another popular topic now. This essay will elaborate the relationship between entrepreneurship, innovation and economic development respectively with theoretic literature and business cases in section 2, and then in section 3, the role of sustainability in this relationship will be illustrated.
2. The relationship between entrepreneurship, innovation and economic development.
2.1 Entrepreneurship and innovation
Numerous
1. Introduction
Entrepreneurship firstly arise from Richard Cantillon’s Essai sur la Nature du Commerce en Général, originally refers to the behavior people aim to become an entrepreneur. Currently, it is an increasingly heated issue worldwide because its power on driving innovation, productivity, job creation and economic development (Fisher, 2010). Schumpeter (1934) defined entrepreneurship as a creative response to potential opportunity and innovation means creating something original, innovative and significant that makes difference in a market or society (Frankelius, 2009). With respect to the relationship between entrepreneurship, innovation and economic development, Schumpeter (1934) highlights the role of entrepreneurship is the catalyst of economic development through innovation. However, recent research discovered that the level of economic development, in turn, has significant influence on entrepreneurship and innovation. Hence, in my opinion, entrepreneurship has important positive effects on economic development in terms of innovation, whereas economic development also affects entrepreneurship and innovation. At the same time, sustainability, which is always combined with entrepreneurship, innovation and economic development frequently arises in government policies or academic research, is another popular topic now. This essay will elaborate the relationship between entrepreneurship, innovation and economic development respectively with theoretic literature and business cases in section 2, and then in section 3, the role of sustainability in this relationship will be illustrated.
2. The relationship between entrepreneurship, innovation and economic development.
2.1 Entrepreneurship and innovation
Numerous
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