Entrepreneurship and Economic Growth Essay Example | Topics and Well Written Essays - 1500 words

Entrepreneurship and Economic Growth - Essay Example For economic growth to happen there is a need for entrepreneurs to assume, manage, and organize the risks that are in the various business ventures. While entrepreneurship is personal, it has an impact on the entire society, which affirms the positive correlation between entrepreneurship and economic growth. Entrepreneurship is usually s an outcome of complex factors that include socioeconomic, technological, and psychological factors within the environments in which the entrepreneurs live. As a process, entrepreneurship is very dynamic and risky as it involves a combination of human talent or creativity, capital and technology. The concept of entrepreneurship applies to small business enterprises as well as large businesses and multinational corporations. It also applies to economic activities and non-economic activities. Entrepreneurial activity on the other hand refers to the rate of new venture start up that is initiated or started by the entrepreneurs and is motivated by the ava ilability of opportunities. Economic development focuses on ways in which production and competition for resources in enhanced. It also involves the process through which per capita income of a country is increased. ... The economy is portrayed as a combination of enterprises and businesses each of which is a combination of the various factors of production. The Role of the Entrepreneur and Creativity The entrepreneur fulfills several functions. The most important function is that of innovation. The entrepreneur uses the available information and his creativity to come up with products that fulfill the need that has been identified in the society. The entrepreneur also comes up with improvements on the already existing products and comes up with new markets for the products. Being creative, the entrepreneur also comes up with a new organization for a specific industry. Through creative innovations, the entrepreneur converts the available material into resources. He also comes up with different ways to combine the available resources and come up with more products that are better and more productive. Creativity is therefore a very important part of the entrepreneurship process. In relation to entrepr eneurship, creativity is the process of developing new services and products that were previously unavailable (Wennekers, Stel, and Carree 45). An entrepreneur also has the responsibility of organizing the resources that are a necessary part of production. This means he has to use his creative and innovative abilities, and his leadership skills to coordinate the production team, generate the resources required for production, and supervise the process of production. The entrepreneur has to ensure that the available resources are channeled towards progressive activities in the pursuit that he has chosen. If the entrepreneur is not keen on the process of the organization of the resources, he may end up using the available resources to produce goods or services that are already in surplus.