Understanding Entrepreneurship an Economic Growth

In terms of how entrepreneurship has been a stimulant in economic growth, the exits enormous discussion and debates but it is however eminent to realize the important of Constance innovation and rivalry enhancement. There has been a problem in defining and measuring entrepreneurial factors and this has further complicated the exact contributions to economic growth.

According to Carree and Thurik (2002), the concept of entrepreneurship is multi-dimensional and largely ill-defined. Understanding the role of entrepreneurship in the process of economic growth will therefore require a framework because of the nature of intermediate variable and connection which exist.

The best of this intermediate variable include; innovation, competition mainly characterized by exit and entry of firms, variety of supply and particular energy and effort of investment of entrepreneurs. Other conditions of entrepreneurship also add up when it comes to their contribution to economic goods. These conditions include personal traits, culture and institutional factors.

While entrepreneurship is all about the activities carried out by individuals, the concept of economic growth has often been relevant at firm level, industrial, national and regional levels. This implies that linking entrepreneurship to economic growth will be to amalgamate individuals to aggregate levels. Considering this linkage, however, requires revisiting the definition of entrepreneurship, whereby entrepreneurs, either as a individual or as a team, manifest their willingness and abilities to create new opportunities in economy. In this manner, novel products, production modalities, organizational schemes and product- market combinations are created. The entrepreneurs seek to introduce their newly crafted ideas in the existing markets in the face of obstacles and uncertainties. They also make critical decisions in terms of business location, form and the utilization of available resources and institutions. In a nutshell, entrepreneurship refers to the behavioural attributes of individuals and should not be confused with well defined professional persons.