This document summarizes a paper on the role of entrepreneurship in economic development, with a focus on necessity entrepreneurship versus opportunity entrepreneurship. It discusses how necessity entrepreneurship, which arises due to lack of options, likely has little or no positive effect on economic growth, while opportunity entrepreneurship, which exploits new business opportunities, likely has a positive effect. It also summarizes findings from the Global Entrepreneurship Monitor project that show developing countries tend to have higher levels of necessity entrepreneurship and lower levels of opportunity entrepreneurship compared to developed countries.
Entrepreneurial orientation, entrepreneurial education and performanceYing wei (Joe) Chou
1. The study examines the relationship between entrepreneurial orientation (including proactiveness, innovativeness, and risk-taking) and business performance, as well as the role of entrepreneurship education.
2. The findings show that innovative proactiveness positively influences non-financial business performance, while risk-taking propensity does not influence financial or non-financial performance.
3. Entrepreneurship education was also found to have no connection with entrepreneurial orientation or business performance.
Small–medium enterprise formation and nigerian economic growthYing wei (Joe) Chou
This document discusses small-medium enterprises (SMEs) and their relationship to economic growth in Nigeria. It provides background on SMEs in Nigeria, noting they account for a large share of employment and output but the country still faces high unemployment, poverty, and low human development. The paper reviews literature on the importance of SMEs in creating jobs, innovation, and knowledge transfer. It also discusses theories of entrepreneurship and entrepreneurial development. The purpose is to empirically examine the link between SME formation, employment, and economic growth in Nigeria using statistical techniques like error correction modeling and cointegration testing.
The brazilian entrepreneurial ecosystem of startups: an analysis of entrepren...Fundação Dom Cabral - FDC
This document summarizes a study that mapped the Brazilian startup entrepreneurial ecosystem according to six determinants defined by the OECD: regulatory framework, market conditions, access to finance, creation and diffusion of knowledge, entrepreneurial capabilities, and entrepreneurship culture. The study involved interviews with Brazilian representatives from these areas and collecting quantitative data related to each determinant. It found that Brazil's entrepreneurship culture is favorable but other determinants like access to finance and fear of failure limit entrepreneurial activity. Comparing Brazil to other countries in Latin America showed differences in perceptions of entrepreneurship opportunities and capabilities.
This document analyzes the relationship between trade openness and income inequality in Africa using data from 38 African countries from 1980 to 2018. It reviews previous literature that has found mixed results on the impact of trade openness on inequality. The literature identifies factors like economic conditions, social factors, and institutions that influence inequality. The document aims to examine the effects of five dimensions of trade openness on income inequality in Africa, using multiple indices of trade openness. Preliminary results from the analysis show that measures of domestic and international trade are associated with higher income inequality. The study contributes new evidence on this topic in Africa.
Entrepreneurial passion orientation and behavior the moderating role of linea...Ying wei (Joe) Chou
This study examines how entrepreneurial passion, orientation, and behavior are influenced by rational and nonrational thinking styles. A conceptual model is proposed and tested using survey data from 300 European entrepreneurs. The findings show that entrepreneurial passion positively influences entrepreneurial orientation, which then strongly impacts strategic entrepreneurship behavior. Additionally, linear thinking positively moderates the relationship between entrepreneurial orientation and behavior, while nonlinear thinking positively moderates the relationship between passion and orientation. This suggests entrepreneurs should utilize different thinking styles to maximize the impact of passion and orientation on behavior.
The Barbadian Entrepreneurship Context, A Youth PerspectiveKeeley Holder
A review of Barbadian Entrepreneurial Culture, looking at the difference between a small business owner and an entrepreneur and the development of Barbados and how it has influenced the entrepreneurial mindset
Diffusion of innovation through individual and collective entrepreneurship an...Ying wei (Joe) Chou
This document discusses a study that explores the relationship between individual entrepreneurship, collective (team-based) entrepreneurship, and innovation in small and medium enterprises (SMEs). The study develops a theoretical framework and tests relationships using structural equation modeling on survey data from 700 entrepreneurs in SMEs in Pakistan. The results confirm that both individual entrepreneur traits and collective team efforts contribute to innovation in SMEs. Specifically, entrepreneur personality traits directly impact innovation while centralized decision-making does not, and factors like communication and collaboration among team members contribute to collective entrepreneurship and entrepreneurial orientation, which both directly impact innovation. The study aims to provide a more holistic view of entrepreneurship and innovation by considering both individual and collective dimensions.
Slide presentation accompanying the paper titled: "Realizing Hong Kong's knowledge-based economy potential as part of a rising China" submitted to The Eighth Annual Conference of The Asian Study Association of Hong Kong, 8-9 March 2013
Entrepreneurial orientation, entrepreneurial education and performanceYing wei (Joe) Chou
1. The study examines the relationship between entrepreneurial orientation (including proactiveness, innovativeness, and risk-taking) and business performance, as well as the role of entrepreneurship education.
2. The findings show that innovative proactiveness positively influences non-financial business performance, while risk-taking propensity does not influence financial or non-financial performance.
3. Entrepreneurship education was also found to have no connection with entrepreneurial orientation or business performance.
Small–medium enterprise formation and nigerian economic growthYing wei (Joe) Chou
This document discusses small-medium enterprises (SMEs) and their relationship to economic growth in Nigeria. It provides background on SMEs in Nigeria, noting they account for a large share of employment and output but the country still faces high unemployment, poverty, and low human development. The paper reviews literature on the importance of SMEs in creating jobs, innovation, and knowledge transfer. It also discusses theories of entrepreneurship and entrepreneurial development. The purpose is to empirically examine the link between SME formation, employment, and economic growth in Nigeria using statistical techniques like error correction modeling and cointegration testing.
The brazilian entrepreneurial ecosystem of startups: an analysis of entrepren...Fundação Dom Cabral - FDC
This document summarizes a study that mapped the Brazilian startup entrepreneurial ecosystem according to six determinants defined by the OECD: regulatory framework, market conditions, access to finance, creation and diffusion of knowledge, entrepreneurial capabilities, and entrepreneurship culture. The study involved interviews with Brazilian representatives from these areas and collecting quantitative data related to each determinant. It found that Brazil's entrepreneurship culture is favorable but other determinants like access to finance and fear of failure limit entrepreneurial activity. Comparing Brazil to other countries in Latin America showed differences in perceptions of entrepreneurship opportunities and capabilities.
This document analyzes the relationship between trade openness and income inequality in Africa using data from 38 African countries from 1980 to 2018. It reviews previous literature that has found mixed results on the impact of trade openness on inequality. The literature identifies factors like economic conditions, social factors, and institutions that influence inequality. The document aims to examine the effects of five dimensions of trade openness on income inequality in Africa, using multiple indices of trade openness. Preliminary results from the analysis show that measures of domestic and international trade are associated with higher income inequality. The study contributes new evidence on this topic in Africa.
Entrepreneurial passion orientation and behavior the moderating role of linea...Ying wei (Joe) Chou
This study examines how entrepreneurial passion, orientation, and behavior are influenced by rational and nonrational thinking styles. A conceptual model is proposed and tested using survey data from 300 European entrepreneurs. The findings show that entrepreneurial passion positively influences entrepreneurial orientation, which then strongly impacts strategic entrepreneurship behavior. Additionally, linear thinking positively moderates the relationship between entrepreneurial orientation and behavior, while nonlinear thinking positively moderates the relationship between passion and orientation. This suggests entrepreneurs should utilize different thinking styles to maximize the impact of passion and orientation on behavior.
The Barbadian Entrepreneurship Context, A Youth PerspectiveKeeley Holder
A review of Barbadian Entrepreneurial Culture, looking at the difference between a small business owner and an entrepreneur and the development of Barbados and how it has influenced the entrepreneurial mindset
Diffusion of innovation through individual and collective entrepreneurship an...Ying wei (Joe) Chou
This document discusses a study that explores the relationship between individual entrepreneurship, collective (team-based) entrepreneurship, and innovation in small and medium enterprises (SMEs). The study develops a theoretical framework and tests relationships using structural equation modeling on survey data from 700 entrepreneurs in SMEs in Pakistan. The results confirm that both individual entrepreneur traits and collective team efforts contribute to innovation in SMEs. Specifically, entrepreneur personality traits directly impact innovation while centralized decision-making does not, and factors like communication and collaboration among team members contribute to collective entrepreneurship and entrepreneurial orientation, which both directly impact innovation. The study aims to provide a more holistic view of entrepreneurship and innovation by considering both individual and collective dimensions.
Slide presentation accompanying the paper titled: "Realizing Hong Kong's knowledge-based economy potential as part of a rising China" submitted to The Eighth Annual Conference of The Asian Study Association of Hong Kong, 8-9 March 2013
This document presents a study that develops a unified measure of inclusive growth by integrating economic growth performance and income distribution outcomes in emerging markets over three decades. The study applies a macroeconomic social mobility function concept to measure inclusive growth in a way that focuses on both inequality and the pace of growth. The results indicate that macroeconomic stability, human capital, and structural changes promote inclusive growth, while financial deepening and technological change show no clear effects. Globalization in the forms of foreign direct investment and trade openness can foster greater inclusiveness.
This document is a literature review and introduction to a research paper analyzing the economic, political, and social impacts of global offshoring. It provides background on the history and evolution of offshoring, beginning in the 1980s when companies opened factories in low-cost countries like India, China, and Mexico. While offshoring increased profits, it also decreased domestic employment. Current challenges include differing impacts on developing and developed countries, with developed countries facing job losses and lower tax revenue and developing countries gaining jobs but not always economic benefits. The research aims to analyze these impacts and potential solutions through qualitative and quantitative research methods.
The Importance of Parameter Constancy for Endogenous Growth with Externality Dr. Kelly YiYu Lin
The economic model of endogenous growth has been commonly discussed. It has been specified by econometric models by Robert Barro (1986, 1990, and 1994) and Xavier Sala-i-Martin (2003) but it is challenging to keep parameter constancy in the model. This paper demonstrates how to find the stable growth rate converging to the steady state and the optimal capital level at the steady state with parameter constancy. This paper also finds the economy would converge to a stable steady state when the co-integration holds between annual growth rate of GDP per capita and GDP per capita. We take an empirical study of selected five countries (Indonesia, India, US, France and Japan) from 1960 to 2016 and specify econometric models of endogenous growth with externality and to test the convergence.
This document summarizes research on the financing needs of small enterprises. The key findings are:
1) Small business owners appeared satisfied with their financial institutions but experienced changes in financing terms and conditions over time.
2) Most small businesses need more credit to expand operations and seize business opportunities but have not had problems accessing credit.
3) Demographic factors influence small business owners' responses to financing, and future research should study relationship lending and bank selection.
Passion driven entrepreneurship in small and medium-sized towns - empirical e...Ying wei (Joe) Chou
This document summarizes a research paper that examines passion-driven entrepreneurship in small and medium-sized towns (SMSTs) in Italy. It explores how entrepreneurial passion (EP) and domain passion (DP) help transform ideas into real entrepreneurial ventures in resource-scarce SMST contexts. The paper analyzes two case studies of passion-driven entrepreneurial ventures (PDEVs) through their development process. It finds that shared passion fosters local involvement and helps overcome hurdles. The paper contributes to literature on entrepreneurship in peripheral contexts and highlights the role of passion and local networks.
The rapid growth of the US financial sector has driven policy debate on whether it is socially desirable. I propose a heterogeneous agent model with asymmetric information and matching frictions that produces a tradeoff between finance and entrepreneurship. By becoming bankers, talented individuals efficiently match investors with entrepreneurs, but do not internalize the negative effect on the pool of talented entrepreneurs. Thus, the financial sector is inefficiently large in equilibrium, and this inefficiency increases with wealth inequality. The model explains the simultaneous growth of wealth inequality and finance in the US, and why more unequal countries have larger financial sectors.
by Kirill Shakhnov, EUI †
JOB MARKET PAPER
First version: January 2015
This version: November 2014
Read more: https://www.hhs.se/site
Challenges affecting informal business funding in zimbabweDr Lendy Spires
This document discusses challenges affecting funding for informal businesses in Zimbabwe. It finds that the main source of funds is personal equity, which is inadequate. Financial support from institutions is also insufficient and reaches few operators. Complex and corrupt loan administration systems, as well as a lack of collateral security, deter operators from obtaining loans. The study recommends that the Zimbabwe Open University provide workshops to improve business skills and evaluate loan distribution channels. The government should also create an enabling environment through supportive policy.
Financial and Institutional Reforms for an Entrepreneurial SocietyDr Lendy Spires
This document introduces a special issue on financial and institutional reforms needed to transition Europe to a more entrepreneurial society. It summarizes the key findings and contributions of the 12 papers in the issue, which address different facets of Europe's entrepreneurial ecosystem including access to knowledge, financial resources, labor markets, and how institutions and entrepreneurship drive economic growth. The papers find that Europe needs more fundamental reforms to improve its entrepreneurial ecosystem compared to past approaches. Access to knowledge, financial resources, and labor are particularly important for supporting more startups and challengers that drive innovation and economic growth through creative destruction.
The document discusses competencies for innovative entrepreneurship. It examines how entrepreneurship has been viewed in economic theory and focuses on distinguishing entrepreneurs from capitalists and managers. It also explores micro-entrepreneurship and harnessing entrepreneurial behavior outside of economic contexts. The document differentiates between entrepreneurship and self-employment, arguing entrepreneurs benefit from specializing skills rather than needing to be all-around generalists. It advocates applying the principles of division of labor to entrepreneurial abilities.
1. The document discusses the meaning, need, and factors affecting entrepreneurship. It defines entrepreneurship as the process of designing, launching, and running a new business to generate profit, while bearing risks.
2. The need for entrepreneurship includes job creation, innovation, community development, integration of outsiders, and enhancing standards of living. Economic factors like capital, labor, raw materials, market, and infrastructure influence entrepreneurial development.
3. Social factors such as caste, family system, and values & beliefs also impact entrepreneurship by shaping people's basic norms and behaviors.
This document summarizes key issues related to small-scale fisheries in South Africa:
- South Africa's fisheries legislation has historically excluded thousands of small-scale fishers, contributing to overfishing and depletion of stocks.
- New proposed legislation aims to formalize small-scale fisheries by allocating collective rights to fisher cooperatives, allowing them to target multiple species.
- However, most near-shore fish stocks are currently collapsed, so increased fishing pressure from an expanded small-scale sector risks further overfishing unless illegal fishing is addressed.
- Recognizing small-scale fisheries' social and economic roles while ensuring sustainability will be an ongoing challenge.
‘There is no barrier to be prosperous, but us’Albertina Navas
Michael Porter, considered the most influential business strategist over the last 30 years, gave a lecture on competitiveness and development in Trinidad and Tobago. In the lecture, he emphasized that governments should focus on facilitating private sector productivity rather than redistributing resources. He also stressed that competitiveness requires coordination between the public and private sectors. In an interview after, Porter discussed China's transition to an innovation-based economy, challenges facing Latin America, the concept of shared value between companies and society, and how the internet on its own is not a source of competitive advantage.
The Backstory of Chinese & Indian Investment in AfricaHarry G. Broadman
This document summarizes a report analyzing China and India's growing investment and trade with Africa. It finds that while FDI from China and India has increased in recent years, over 90% of FDI stock in Africa still comes from Europe and the US. Chinese and Indian firms are also increasingly investing in non-resource sectors in Africa and integrating their operations across the continent. However, Chinese and Indian firms differ in their typical structures, investment strategies, and level of integration with local economies in Africa. More comprehensive data and analysis is still needed to have an objective policy debate around South-South commerce in Africa.
Barriers to Development and Progress of Entreprenurs: Case of Lesothopaperpublications3
Abstract: This paper gives an analysis on the barriers to development and progress of entrepreneurs in Lesotho. It adopts the use of primary data which was collected through personal interview with structured questionnaire and direct observations. The results reveal that all entrepreneurs regardless of gender are equally faced with economic barriers which comprise lack of finance and problems of markets. Furthermore, the socio-cultural factors which involve negative view of society towards women and individual familial factors especially family problems basically affect women; these could be attributed to the fact that women are liable for domestic responsibilities in their families. However, structural barriers are observed to have an insignificant impact on development and progress of Lesotho entrepreneurs. Following these findings, through trade organizations, the government could assist in supporting the establishment of mentoring networks facilitating the development of the emerging entrepreneurs, as well as providing training workshops on women empowerment. Also, mechanisms to support entrepreneurs and assist them in gaining access to international markets should be developed.
Entrepreneurship corporate entrepreneurship and venturingPham Duong
This chapter discusses two types of corporate entrepreneurship that can help balance exploitation and exploration in large companies: dispersed and focused. Dispersed entrepreneurship allows entrepreneurial initiatives to emerge throughout the organization to cultivate an entrepreneurial culture. Focused entrepreneurship separates entrepreneurship from core operations by establishing corporate venture capital programs to invest in startups and benefit from their new technologies, products, and competencies. The chapter introduces the concepts and issues around each type, setting the stage for subsequent chapters that provide deeper analysis of key drivers of entrepreneurial behavior within companies and mechanisms for linking startups with parent companies.
Empirical stands of business succesion among african owned business africa 3John Johari
The document summarizes a research paper that analyzes barriers to the growth of small and medium-sized enterprises in Kenya. It discusses the concept of a "missing middle" in small business development and explores how some indigenous Kenyan companies have successfully grown into the medium size range despite challenges. The research involved case studies of four medium companies. It finds that business owners manage the hostile political environment through strategies like choosing markets carefully, maintaining low visibility, and developing a family culture. This suggests the issue is better described as an "invisible middle" rather than a missing one.
This document discusses the evolution of the concept of inclusive economies and key lessons learned from analyzing related indicator initiatives. It proposes a framework for measuring inclusive economies consisting of 5 broad characteristics (equitable, participatory, growing, sustainable, and stable) divided into 15 sub-categories and 57 specific indicators. The framework is intended to promote discussion and understanding of inclusive economies while acknowledging limitations of indicators in fully capturing complex concepts.
The purpose of this paper is to investigate how firm age and size affect the small and medium firm to move from the local to international market. Literature has strongly suggested that the firm age and firm size some of the key factors that influence internationalization of medium sized firms for many developing economies though little research has been done regarding the same for developing economies. An in depth survey was conducted with 73 Kenya Top 100 medium companies targeting the CEOs and/or key executives by the use of a questionnaire instrument. The data was analyzed by the use of Statistical Package for Social Scientists (SPSS) Version 21. Both descriptive and inferential statistics were used to present data. The study found that if Kenyan medium sized firms would sustainably increase the size of their operation, as they age, this would increase theirreadiness to internationalize their operations. They would therefore achieve superior capability to maximize on any opportunity that might arise for doing business in foreign market.The study recommends that the Government of Kenya should provide a supportive environment that would enable medium firmsto grow and overcome the challenges of smallness which is a precursor to internationalization.
Inclusive Competitiveness: Empowering Underrepresented Ohioans to Compete in ...ScaleUp Partners LLC
The Ohio Board of Regents on Oct. 14, 2014 unanimously adopted the report Inclusive Competitiveness: Empowering Underrepresented Ohioans to Compete in the Innovation Economy. The action marked a turning point in the history of America from an exclusive economic landscape of the past toward a future frontier of economic inclusion.
Johnathan Holifield is both architect and author of this extraordinary vision and strategy of Inclusive Competitiveness that is now statewide policy in Ohio, a perennial political battleground state.This bipartisan embracing of a shared economic vision will be inculcated throughout the Ohio system of higher education.
Indeed, this is historic news and worth of emulation by all states across America.
An Examination of Effectuation Dimension as Financing Practice of Small and M...iosrjce
IOSR Journal of Business and Management (IOSR-JBM) is a double blind peer reviewed International Journal that provides rapid publication (within a month) of articles in all areas of business and managemant and its applications. The journal welcomes publications of high quality papers on theoretical developments and practical applications inbusiness and management. Original research papers, state-of-the-art reviews, and high quality technical notes are invited for publications.
This document presents a study that develops a unified measure of inclusive growth by integrating economic growth performance and income distribution outcomes in emerging markets over three decades. The study applies a macroeconomic social mobility function concept to measure inclusive growth in a way that focuses on both inequality and the pace of growth. The results indicate that macroeconomic stability, human capital, and structural changes promote inclusive growth, while financial deepening and technological change show no clear effects. Globalization in the forms of foreign direct investment and trade openness can foster greater inclusiveness.
This document is a literature review and introduction to a research paper analyzing the economic, political, and social impacts of global offshoring. It provides background on the history and evolution of offshoring, beginning in the 1980s when companies opened factories in low-cost countries like India, China, and Mexico. While offshoring increased profits, it also decreased domestic employment. Current challenges include differing impacts on developing and developed countries, with developed countries facing job losses and lower tax revenue and developing countries gaining jobs but not always economic benefits. The research aims to analyze these impacts and potential solutions through qualitative and quantitative research methods.
The Importance of Parameter Constancy for Endogenous Growth with Externality Dr. Kelly YiYu Lin
The economic model of endogenous growth has been commonly discussed. It has been specified by econometric models by Robert Barro (1986, 1990, and 1994) and Xavier Sala-i-Martin (2003) but it is challenging to keep parameter constancy in the model. This paper demonstrates how to find the stable growth rate converging to the steady state and the optimal capital level at the steady state with parameter constancy. This paper also finds the economy would converge to a stable steady state when the co-integration holds between annual growth rate of GDP per capita and GDP per capita. We take an empirical study of selected five countries (Indonesia, India, US, France and Japan) from 1960 to 2016 and specify econometric models of endogenous growth with externality and to test the convergence.
This document summarizes research on the financing needs of small enterprises. The key findings are:
1) Small business owners appeared satisfied with their financial institutions but experienced changes in financing terms and conditions over time.
2) Most small businesses need more credit to expand operations and seize business opportunities but have not had problems accessing credit.
3) Demographic factors influence small business owners' responses to financing, and future research should study relationship lending and bank selection.
Passion driven entrepreneurship in small and medium-sized towns - empirical e...Ying wei (Joe) Chou
This document summarizes a research paper that examines passion-driven entrepreneurship in small and medium-sized towns (SMSTs) in Italy. It explores how entrepreneurial passion (EP) and domain passion (DP) help transform ideas into real entrepreneurial ventures in resource-scarce SMST contexts. The paper analyzes two case studies of passion-driven entrepreneurial ventures (PDEVs) through their development process. It finds that shared passion fosters local involvement and helps overcome hurdles. The paper contributes to literature on entrepreneurship in peripheral contexts and highlights the role of passion and local networks.
The rapid growth of the US financial sector has driven policy debate on whether it is socially desirable. I propose a heterogeneous agent model with asymmetric information and matching frictions that produces a tradeoff between finance and entrepreneurship. By becoming bankers, talented individuals efficiently match investors with entrepreneurs, but do not internalize the negative effect on the pool of talented entrepreneurs. Thus, the financial sector is inefficiently large in equilibrium, and this inefficiency increases with wealth inequality. The model explains the simultaneous growth of wealth inequality and finance in the US, and why more unequal countries have larger financial sectors.
by Kirill Shakhnov, EUI †
JOB MARKET PAPER
First version: January 2015
This version: November 2014
Read more: https://www.hhs.se/site
Challenges affecting informal business funding in zimbabweDr Lendy Spires
This document discusses challenges affecting funding for informal businesses in Zimbabwe. It finds that the main source of funds is personal equity, which is inadequate. Financial support from institutions is also insufficient and reaches few operators. Complex and corrupt loan administration systems, as well as a lack of collateral security, deter operators from obtaining loans. The study recommends that the Zimbabwe Open University provide workshops to improve business skills and evaluate loan distribution channels. The government should also create an enabling environment through supportive policy.
Financial and Institutional Reforms for an Entrepreneurial SocietyDr Lendy Spires
This document introduces a special issue on financial and institutional reforms needed to transition Europe to a more entrepreneurial society. It summarizes the key findings and contributions of the 12 papers in the issue, which address different facets of Europe's entrepreneurial ecosystem including access to knowledge, financial resources, labor markets, and how institutions and entrepreneurship drive economic growth. The papers find that Europe needs more fundamental reforms to improve its entrepreneurial ecosystem compared to past approaches. Access to knowledge, financial resources, and labor are particularly important for supporting more startups and challengers that drive innovation and economic growth through creative destruction.
The document discusses competencies for innovative entrepreneurship. It examines how entrepreneurship has been viewed in economic theory and focuses on distinguishing entrepreneurs from capitalists and managers. It also explores micro-entrepreneurship and harnessing entrepreneurial behavior outside of economic contexts. The document differentiates between entrepreneurship and self-employment, arguing entrepreneurs benefit from specializing skills rather than needing to be all-around generalists. It advocates applying the principles of division of labor to entrepreneurial abilities.
1. The document discusses the meaning, need, and factors affecting entrepreneurship. It defines entrepreneurship as the process of designing, launching, and running a new business to generate profit, while bearing risks.
2. The need for entrepreneurship includes job creation, innovation, community development, integration of outsiders, and enhancing standards of living. Economic factors like capital, labor, raw materials, market, and infrastructure influence entrepreneurial development.
3. Social factors such as caste, family system, and values & beliefs also impact entrepreneurship by shaping people's basic norms and behaviors.
This document summarizes key issues related to small-scale fisheries in South Africa:
- South Africa's fisheries legislation has historically excluded thousands of small-scale fishers, contributing to overfishing and depletion of stocks.
- New proposed legislation aims to formalize small-scale fisheries by allocating collective rights to fisher cooperatives, allowing them to target multiple species.
- However, most near-shore fish stocks are currently collapsed, so increased fishing pressure from an expanded small-scale sector risks further overfishing unless illegal fishing is addressed.
- Recognizing small-scale fisheries' social and economic roles while ensuring sustainability will be an ongoing challenge.
‘There is no barrier to be prosperous, but us’Albertina Navas
Michael Porter, considered the most influential business strategist over the last 30 years, gave a lecture on competitiveness and development in Trinidad and Tobago. In the lecture, he emphasized that governments should focus on facilitating private sector productivity rather than redistributing resources. He also stressed that competitiveness requires coordination between the public and private sectors. In an interview after, Porter discussed China's transition to an innovation-based economy, challenges facing Latin America, the concept of shared value between companies and society, and how the internet on its own is not a source of competitive advantage.
The Backstory of Chinese & Indian Investment in AfricaHarry G. Broadman
This document summarizes a report analyzing China and India's growing investment and trade with Africa. It finds that while FDI from China and India has increased in recent years, over 90% of FDI stock in Africa still comes from Europe and the US. Chinese and Indian firms are also increasingly investing in non-resource sectors in Africa and integrating their operations across the continent. However, Chinese and Indian firms differ in their typical structures, investment strategies, and level of integration with local economies in Africa. More comprehensive data and analysis is still needed to have an objective policy debate around South-South commerce in Africa.
Barriers to Development and Progress of Entreprenurs: Case of Lesothopaperpublications3
Abstract: This paper gives an analysis on the barriers to development and progress of entrepreneurs in Lesotho. It adopts the use of primary data which was collected through personal interview with structured questionnaire and direct observations. The results reveal that all entrepreneurs regardless of gender are equally faced with economic barriers which comprise lack of finance and problems of markets. Furthermore, the socio-cultural factors which involve negative view of society towards women and individual familial factors especially family problems basically affect women; these could be attributed to the fact that women are liable for domestic responsibilities in their families. However, structural barriers are observed to have an insignificant impact on development and progress of Lesotho entrepreneurs. Following these findings, through trade organizations, the government could assist in supporting the establishment of mentoring networks facilitating the development of the emerging entrepreneurs, as well as providing training workshops on women empowerment. Also, mechanisms to support entrepreneurs and assist them in gaining access to international markets should be developed.
Entrepreneurship corporate entrepreneurship and venturingPham Duong
This chapter discusses two types of corporate entrepreneurship that can help balance exploitation and exploration in large companies: dispersed and focused. Dispersed entrepreneurship allows entrepreneurial initiatives to emerge throughout the organization to cultivate an entrepreneurial culture. Focused entrepreneurship separates entrepreneurship from core operations by establishing corporate venture capital programs to invest in startups and benefit from their new technologies, products, and competencies. The chapter introduces the concepts and issues around each type, setting the stage for subsequent chapters that provide deeper analysis of key drivers of entrepreneurial behavior within companies and mechanisms for linking startups with parent companies.
Empirical stands of business succesion among african owned business africa 3John Johari
The document summarizes a research paper that analyzes barriers to the growth of small and medium-sized enterprises in Kenya. It discusses the concept of a "missing middle" in small business development and explores how some indigenous Kenyan companies have successfully grown into the medium size range despite challenges. The research involved case studies of four medium companies. It finds that business owners manage the hostile political environment through strategies like choosing markets carefully, maintaining low visibility, and developing a family culture. This suggests the issue is better described as an "invisible middle" rather than a missing one.
This document discusses the evolution of the concept of inclusive economies and key lessons learned from analyzing related indicator initiatives. It proposes a framework for measuring inclusive economies consisting of 5 broad characteristics (equitable, participatory, growing, sustainable, and stable) divided into 15 sub-categories and 57 specific indicators. The framework is intended to promote discussion and understanding of inclusive economies while acknowledging limitations of indicators in fully capturing complex concepts.
The purpose of this paper is to investigate how firm age and size affect the small and medium firm to move from the local to international market. Literature has strongly suggested that the firm age and firm size some of the key factors that influence internationalization of medium sized firms for many developing economies though little research has been done regarding the same for developing economies. An in depth survey was conducted with 73 Kenya Top 100 medium companies targeting the CEOs and/or key executives by the use of a questionnaire instrument. The data was analyzed by the use of Statistical Package for Social Scientists (SPSS) Version 21. Both descriptive and inferential statistics were used to present data. The study found that if Kenyan medium sized firms would sustainably increase the size of their operation, as they age, this would increase theirreadiness to internationalize their operations. They would therefore achieve superior capability to maximize on any opportunity that might arise for doing business in foreign market.The study recommends that the Government of Kenya should provide a supportive environment that would enable medium firmsto grow and overcome the challenges of smallness which is a precursor to internationalization.
Inclusive Competitiveness: Empowering Underrepresented Ohioans to Compete in ...ScaleUp Partners LLC
The Ohio Board of Regents on Oct. 14, 2014 unanimously adopted the report Inclusive Competitiveness: Empowering Underrepresented Ohioans to Compete in the Innovation Economy. The action marked a turning point in the history of America from an exclusive economic landscape of the past toward a future frontier of economic inclusion.
Johnathan Holifield is both architect and author of this extraordinary vision and strategy of Inclusive Competitiveness that is now statewide policy in Ohio, a perennial political battleground state.This bipartisan embracing of a shared economic vision will be inculcated throughout the Ohio system of higher education.
Indeed, this is historic news and worth of emulation by all states across America.
An Examination of Effectuation Dimension as Financing Practice of Small and M...iosrjce
IOSR Journal of Business and Management (IOSR-JBM) is a double blind peer reviewed International Journal that provides rapid publication (within a month) of articles in all areas of business and managemant and its applications. The journal welcomes publications of high quality papers on theoretical developments and practical applications inbusiness and management. Original research papers, state-of-the-art reviews, and high quality technical notes are invited for publications.
The Role of IT in Supporting Vietnam Youth Entrepreneurshipijtsrd
This paper aimed to analyse the role of IT in supporting entrepreneurs in Vietnam. Our findings show that youth entrepreneurship in Vietnam face a number of hurdles in accessing IT services. Although a number of them have shown an interest in integrating IT into their business operations, however, most of them do not have enough resources to fully exploit IT opportunities. Other problems mentioned to confront youth entrepreneurship in their endeavour to access and use IT in their businesses is the lack of knowledge and skills on how to use computer, language and lack of time. Dr. Le Nguyen Doan Khoi "The Role of IT in Supporting Vietnam Youth Entrepreneurship" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-4 , June 2020, URL: https://www.ijtsrd.com/papers/ijtsrd31503.pdf Paper Url :https://www.ijtsrd.com/economics/commerce/31503/the-role-of-it-in-supporting-vietnam-youth-entrepreneurship/dr-le-nguyen-doan-khoi
This document provides an overview of the state of the art of the intersection between entrepreneurship and development economics. It discusses three key areas: 1) Recent theoretical insights that link entrepreneurship to structural economic transformation and the role it plays in development. 2) The empirical evidence on the relationship between entrepreneurship and multidimensional development. 3) New perspectives on entrepreneurship policy for development, including the role of female entrepreneurship. The document aims to stimulate discussion at the intersection of entrepreneurship and development studies.
Connections As A Tool For Growth: Evidence From The LinkedIn Economic GraphLinkedIn
New evidence from LinkedIn’s current network, presented here, demonstrates the economic value of connections. We calculate an “index of connectedness” for each of 275 metro regions in the U.S., based on the average number of connections per LinkedIn member in that region. The higher the index of connectedness, the more dense the connections between LinkedIn members in that region. Using data from the Bureau of Labor Statistics, we calculate the four-year and one-year nonfarm payroll job growth for those metro regions.
This report was authored by Dr. Michael Mandel, with research supported by LinkedIn. November 2014.
This article analyzes the link between entrepreneurship and economic development in India using data from the Global Entrepreneurship Monitor and Indian government sources. It finds that as India's economy grew after 1991 reforms, entrepreneurial activity as measured by total early-stage entrepreneurial activity and small-scale industries also increased. However, some states showed higher rates of registered small firms correlating with economic development, suggesting a shift to more opportunity-driven entrepreneurship. The study aims to contribute to understanding entrepreneurship in developing countries by exploring these relationships in the context of India's growth.
THE ROLE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT OF NIGERIANAJHSSR Journal
: Entrepreneurial industries was selected one from each Geo political zone in Nigeria with
population of 387 on the whole descriptive survey design was used and correlation coefficient was used in
determining the relationship between these variable and economic development in Nigeria. Entrepreneurship, all
over the world is acclaimed as a significant factor in economic development. Entrepreneurship does not only
increase per capital income it also increases factor utilization. It is also a veritable change agent of the structure
of business and society. As a change agent it acts as a catalyst for the generation of new ideas, products,
methods of production and the distribution of the products so produced. The jobs created, the new technologies
developed, the improved production method, the increase in output both in terms of quantity and quality are all
the ingredients for economic growth and development. The paper has explored the roles of entrepreneurship at
different sectors of the economy. In carrying out the research this paper is of the view that because of the
capacity of entrepreneurship to generate increased output, its ability to create jobs through formation of new
enterprises, to facilitate transfer of technology or adoption of technology, to invigorate large scale enterprises, to
harness resources, that might otherwise be latent and to stimulate growth in those sectors which supply it with
input; because it is able to encourage and sustain economic dynamism that enables a country to adjust
successfully in a rapidly changing global economy, entrepreneurial development is a sine qua non in the
development of any country especially, a developing country. Conclusion were made and the study
recommended that more job opportunity will be created policies strengthened, environment should be improved
for financing and investment welcomed.
EY : Baromètre 2013 de l'entrepreneuriat dans les pays du G20 #EY #G20Franck Sebag
Baromètre EY 2013 de l'entrepreneuriat dans les pays du G20
« La règle de trois »
L’entrepreneuriat, moteur de la croissance et de l’emploi
L’entrepreneuriat est clairement identifié dans tous les pays du G20 comme un levier incontournable pour relancer la croissance, ainsi que le montre la 2ème édition du Baromètre EY 2013 de l’entrepreneuriat* :
67% des emplois créés en 2012 dans les pays de l’UE l’ont été par des entrepreneurs ;
74% des entrepreneurs des pays du G20 affirment avoir recruté l’an passé grâce à la croissance qu’ils ont pu générer par l’innovation.
2013 The EY G20 Entrepreneurship Barometer 2013Steve Mondragon
The document is an executive summary of the EY G20 Entrepreneurship Barometer 2013, which analyzes and compares entrepreneurial ecosystems across G20 countries. Some key findings:
- The United States ranks first overall, followed by the United Kingdom and China. Australia, Canada, South Korea, and Germany also rank highly. Argentina and India rank in the bottom quartile.
- The United States leads in access to funding and entrepreneurship culture. Saudi Arabia tops tax and regulation while France leads in education and training. Russia provides the most coordinated support.
- Every G20 country excels in some areas but all need to improve support for entrepreneurs. Adopting other countries' successful policies and
The economic and business case for global LGB&T inclusion.
Open For Business is a coalition of global companies making the case that inclusive, diverse societies are better for business and better for economic growth. The purpose of the coalition is to promote a positive business and economic case for equality of opportunity for everyone, all across the world.
They have published a comprehensive report, written by Brunswick partners, Jon Miller and Lucy Parker, which shows that successful businesses thrive in open, diverse and inclusive societies.
For more information visit: www.open-for-business.org
This document discusses conducting a PEST analysis to evaluate the environmental suitability for developing entrepreneurship in Bangladesh. It provides background on entrepreneurship in Bangladesh historically and currently. It outlines the scope of the study, reviews relevant literature on factors influencing entrepreneurship development. This includes discussing economic and non-economic factors, the social and economic background of Bangladesh, conditions for women entrepreneurs, and problems associated with entrepreneurship development. The document proposes using PEST analysis to evaluate the political, economic, social, and technological environment in Bangladesh to identify opportunities and challenges for growing entrepreneurship.
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
The Journal will bring together leading researchers, engineers and scientists in the domain of interest from around the world. Topics of interest for submission include, but are not limited to
A Study of Community Entrepreneurship Development Research A Resource of Clar...ijtsrd
Community entrepreneurship, as training and a field for academic research, gives an exceptional chance to test, question, and reevaluate ideas and suppositions from various fields of the executives and business look into. This article advances a perspective on Community entrepreneurship as a procedure that catalyzes social change and addresses critical social needs in a way that isnt ruled by direct money related advantages for the business visionaries. Community entrepreneurship is viewed as varying from different types of business in the moderately higher need given to advancing social esteem and improvement as opposed to catching financial esteem. To animate future research the creators present the idea of embeddedness as a connection between hypothetical viewpoints for the investigation of Community entrepreneurship. J Jose Prabhu ""A Study of Community Entrepreneurship Development Research: A Resource of Clarification and Forecast"" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-3 , April 2019, URL: https://www.ijtsrd.com/papers/ijtsrd21741.pdf
Paper URL: https://www.ijtsrd.com/management/new-venture-start-up/21741/a-study-of-community-entrepreneurship-development-research-a-resource-of-clarification-and-forecast/j-jose-prabhu
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This document discusses the role of business schools in orienting students towards building "happiconomies" or economies that focus on happiness and well-being rather than solely on economic indicators like GDP. It outlines how parameters for measuring economic and business performance have broadened in recent decades beyond profits to also consider environmental and social impacts. Business schools will need to play a role in educating students on these new paradigms and reorienting them towards building sustainable and ethical organizations that contribute to overall societal happiness. The document suggests some approaches business schools could take, such as integrating ethics into all business subjects and using more case studies that illustrate the societal consequences of decisions.
Since the mid-1980s, sustainable development has been generally used but got predominance
when it became progressively fashionable to use it as a way of reacting to global environmental concerns,
biophysical issues, fairness, equity and distribution. The issue of sustainable development has been a growing
concern to both the government
A Study on Women Entrepreneurship in India.pdfApril Smith
This document summarizes a study on women entrepreneurship in India. It discusses how women entrepreneurship can contribute to economic growth but faces many challenges in India compared to other countries. Some key points:
- Women entrepreneurship plays an important role in economic development but is low in India, especially rural areas, due to social and cultural barriers.
- Common challenges for women entrepreneurs in India include lack of access to finance, family support, mobility issues, and discrimination in a male-dominated society.
- To promote women entrepreneurship in India, actions are needed to increase awareness, access to education, self-confidence, and support for balancing domestic and work responsibilities. Overcoming obstacles requires changes to social and cultural
Impediments and Inducements to Youth Entrepreneurship Development in Sylhet R...IOSRJBM
The purpose of this paper is to explore and identify the key impediments and constraints that obstruct young people from starting and running a new venture and at the same time, inducements and stimuli that trigger youths to entrepreneurial activities. Data were collected from 80 young entrepreneurs of Sylhet, Bangladesh through a questionnaire gleaned from the literature review following a convenience and purposive sampling technique. Findings revealed, insufficient personal savings, high interest rate, and negative attitude of financial institutions to young entrepreneurs due to high default rate are the major impediments to obtaining start-up fund, being their own boss and earning more money are the prime inducements to engage in business. Parents and teachers influenced most to start business while financial risk reported as the most critical demotivator. Managing fund and fierce competition are main problems in running the business successfully. Lack of vocational education and training and inappropriate and inadequate curriculum and study programs are the key educational constraints, unsupportive tax regulations, complex business registration procedure are the leading administrative and regulatory barriers, dearth of information on available business support services and lack of training and business counseling are the major impediments of business support services. The implications of the study bear far-reaching ramifications to the concerned stakeholders for facilitating and encouraging youth entrepreneurship development by addressing the start-up constraints and problems
This document summarizes a research article about the emergence of "social multinational" firms that pursue both private profits and social objectives. It provides some examples of microfinance institutions like Grameen Bank that have expanded internationally while targeting poverty reduction. However, the document notes that market forces alone may not support the growth of social multinationals and institutional innovations are needed. It aims to distinguish social multinationals from corporate social responsibility strategies and outline factors that could promote their development.
This document summarizes the methodology of a Global Entrepreneurship Week policy survey conducted in 2013. The survey collected 2,279 responses from entrepreneurs in 109 countries on their experiences with regulation, access to resources, and the entrepreneurial environment. It was disseminated through GEW host organizations and made available online in 17 languages. While responses were received from a wide range of countries, the sample was concentrated in a handful of larger countries. Smaller countries tended to have a higher proportional response rate relative to their total population size. The results will help inform policymakers about differences in entrepreneurial conditions between countries.
Entrepreneurship is considered as a source of wealth creation, economic growth, social progress, and technological development. The current paper seeks to shed light on obstacles that are impeding business creators to start their businesses. To identify the observed constraints, we developed a questionnaire that we addressed to 120 new entrepreneurs drawing on the theoretical and empirical literature. The application of factor analysis has revealed that business creators’ decision to launch their ventures is hindered mainly by the following factors: lack of managerial and business skills, poor training programs, and risk aversion. The study also suggests some recommendations to alleviate obstacles facing new entrepreneurs when deciding to launch their projects
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Role of Entrepreneurship in Economic Development
With special focus on necessity entrepreneurship and opportunity entrepreneurship
Dr. Sangya Shrivastava, Director, Rai Business School, Raipur
Roopal Shrivastava, Research Scholar, MATS University, Raipur
ABSTRACT
Entrepreneurs are people who create new businesses,
which help create new jobs for people. They help in
intensifying competition, with the help of technology they
master in increasing productivity and thus contributing in
the development of the country, followed by economic
growth. So it can be said that entrepreneurship is good for
economic growth .The paper will justify how far this
stands true in reality. Now if the entrepreneurship allows
informal self employment which means without formally
creating new business then it could be assumed that high
levels of entrepreneurship would correlate with sluggish
economic growth and sheathing development. Study
further mentions findings of a survey known as “Global
Entrepreneurship Monitor (GEM) project” which is
related to understand how different types of
entrepreneurship affect development of the country. The
term “necessity entrepreneurship,” is in the paper, which
means to become an entrepreneur because you have no
better option. It is different from “opportunity
entrepreneurship”, which is an active choice to start a
new enterprise based on the perception that an
unexploited or underexploited business opportunity exists.
We have collected secondary data available and literature
previously studied. The data analyzed reveals that effects
of necessity and opportunity entrepreneurship on
economic growth and development vary greatly. The study
has been concluded that necessity entrepreneurship bears
no effect on economic development and opportunity
entrepreneurship has a positive and significant effect.
INTRODUCTION
"Business opportunities are like buses, there's always
another one coming."
- Richard Branson, founder of Virgin Enterprises
Entrepreneurship has at two meanings:
First, entrepreneurship refers to owning and
managing a business. This is the occupational
notion of entrepreneurship i.e. creation of new
business.
Second, entrepreneurship refers to entrepreneurial
behavior in the sense of seizing an economic
opportunity. This is the behavioral notion of
entrepreneurship.
The entrepreneur, therefore, “is someone who specializes
in making judgmental decisions about the coordination of
scarce resources.” The term emphasizes that the
entrepreneur is an individual. As G. L. S. Schackle wrote,
“The entrepreneur is a maker of history, but his guide in
making it is his judgment of possibilities and not a
calculation of certainties,” and identified uncertainty-
bearing as the economic function of the entrepreneur.
According to Schumpeter, the entrepreneur is the prime
mover in economic development and his function is to
innovate. It is defined and established in traditional
theories that Investment in new knowledge increases the
technology opportunity set and sharpens the ability to look
into the future. entrepreneurial activity thus could be very
well understood as the activity that holds the discovery,
evaluation and exploitation of opportunities within the
defined established framework and how these
opportunities are discovered exploited is related to
institutional arrangement of the country or the individual.
During the study we found four types of ventures:
independent start-ups;
spin-offs;
acquisitions;
corporate ventures
How was the necessity entrepreneurship born?
After the fall of the Berlin Wall many uneconomical
factories were closed in Central Europe as economies
became integrated into the global economy. Those
workers who had jobs in the plants and factories of the
former socialist countries were productive members of
society. However, as factories were closed one after
another, many of these workers found them- selves with
no other options for work than self employment—
necessity entrepreneurship. As one would expect, the
influx of many former wage workers into necessity
entrepreneurship resulted in several years of negative GDP
growth.
When a new business opportunity is taken up or exploited
it is assumed that it will lead to economic development but
on the other hand taking up of necessity entrepreneurship
may not lead to the same. It also may be the case that
under development may happen due to self employment.
Many countries have some level of both opportunity and
necessity entrepreneurship, studies suggest that the ratio of
opportunity-to-necessity entrepreneurship could be a
useful indicator of economic development; we can say it
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can also act as a guide for development policy for the
policy makers. So the equation comes out to be of
positive relationship between the opportunity ratio and
GDP per capita. The suggestion could be given to less
developed countries that they should focus on
strengthening General National Framework Conditions,
and developed economies policy should focus on
strengthening the entrepreneurial framework conditions.
THE GEM PROGRAM
“The Global Entrepreneurship Monitor (GEM) research
program is an annual assessment of the national level of
entrepreneurial activity. Initiated in 1999 with 10
countries, expanded to 21 in the year 2000 and 39
countries in 2005, the program covers both developed and
developing countries. The research program, based on a
harmonized assessment of the level of national
entrepreneurial activity for all participating countries,
involves exploration of the role of entrepreneurship in
national economic growth. Representative samples of
randomly selected adults, ranging in size from 1,000 to
almost 27,000 individuals, are surveyed each year in each
country in order to provide harmonized measures of the
prevalence of entrepreneurial activity. There is a wealth of
national features and characteristics associated with
entrepreneurial activity.”
Source:www.gemcomnsortium.org
The GEM project provides data across countries. While all
countries collect official data on self-employment, the size
distribution of firms, census data on all or most plants and
firms, and firm and plant entry, almost none of these
registry sources are comparable across countries, even in
developed countries. Official data sources differ in the
way they define when an establishment enters a file, when
it leaves, and how they handle self employment, making
cross-national comparisons almost impossible.
P.D. Reynolds, N. S. Bosma, E. and Autio, “Global
Entrepreneurship
Monitor: Data Collection Design and Implementation 1998-
2003.” Small Business Economics, 2005
The strengths of the project is its application of uniform
definitions and data collection across countries for
international comparisons. A major shortcoming of the
GEM project has been its inability to effectively deal with
the “issue” of how to compare entrepreneurial activity in
developed and developing countries. For example, low-
income countries like Uganda, Peru and Ecuador have
very high levels of self-employment and therefore have
high levels of entrepreneurial activity as measured by the
GEM program. High-income countries like Japan, Sweden
and Germany have much lower levels of entrepreneurial
activity as measured by the GEM program. In order to
address this issue, when India entered the program, GEM
researchers started to collect data on both opportunity
entrepreneurship—starting a business to exploit a
perceived business opportunity—and necessity
entrepreneurship—starting a business because you are not
left with any other option. Both of these measures show
higher levels in developing countries than in developed
countries. The relationship between necessity
entrepreneurship and economic development is most likely
negative in low-income countries, while the relationship
between entrepreneurship and economic development in
high-income countries is mostly likely positive. This must
be further balanced by the fact that some low-income
countries like India and China have high levels of
opportunity entrepreneurship, at least in certain parts of
the country, and countries like Japan have very low levels
of opportunity entrepreneurship and low growth. In 2004
Global Entrepreneurship Report started to pursue the idea
of using the opportunity-necessity ratio as a composite
indicator of entrepreneurial activity and economic
development.
Z.J. Acs, P. Arenius, M. Hay and M. Minniti, 2004 Global
Entrepreneurship Monitor. (London Business School
and Babson College. London U.K. And Babson Park, MA, 2005).
Relationship between Economic Development and
Globalization
Three stages of development are defined by Development
Economists:
first state is , the economy specializes in the
production of agricultural products and small-scale
manufacturing.
second stage, the economy shifts from small-scale
production toward manufacturing.
third stage, with increasing wealth the economy
shifts away from manufacturing toward services.
M. Syrquin, “Patterns of Structural Change.” In Handbook of
Development Economics, edited by H. Chenery and T.N.
Srinivasan, 203-273. (Amsterdam / New York: North-Holland.,
1988)
The first stage is about high rates of non-agricultural self-
employment, sole proprietorships or the self-employed
which means small manufacturing firms and service firms.
The second stage talks about when rates of self-
employment are decreased. Entrepreneurial activity
decreases as economies become more developed. As the
economy becomes more developed fewer people pursue
entrepreneurial activities. Now coming to the third stage,
which simply sees increase in entrepreneurial activity,
which is moving from small firms towards larger
organizations. This came to in seen between 1970 „s and
80‟s.The studies I have read indicates that firm size
distribution in more developed countries has moved
towards entrepreneurial activity.
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Mainly I came across three reasons why entrepreneurial
activity rises in the final stage of economic activity. All of
the industrialized market economies experienced a decline
in the share of manufacturing in their economies in the last
thirty years. The business service sector expended to
manufacturing. Service firms are smaller on average than
manufacturing firms, therefore, economy-wide average
firm size may decline. Moreover, service firms provide
more opportunities for entrepreneurship. This is clearly the
case in the U.S., as well as in several EU countries,
including Germany and Sweden.
Second, during the post-war period technological change
has been biased toward industries in which entrepreneurial
activity is important. Improvements in information
technologies such as telecommunications may increase the
returns to entrepreneurship. Express-mail services,
photocopying services, personal computers, the internet,
web services and mobile phone services make it less
expensive and less time consuming for geographically
separate individuals to exchange information.
D.W. Jorgenson, 2001, “Information Technology and the U.S.
Economy.” American Economic Review, 91 (1): 1-32.
Third, Robert Lucas derived a model where higher
development leads to higher average firm size because of a
negative relationship between the elasticity of factor
substitution and firm size. A high value of the elasticity of
factor substitution does not only lead to more per capita
capital, but makes it easier for an individual to become an
entrepreneur if the aggregate elasticity of substitution is
also negative. In an economy characterized by higher
values of the aggregate elasticity of substitution, we
should expect a higher level of development, more
entrepreneurs and smaller firms.
M. Aquilina, R. Klump and C. Pietrobelli, 2006, “Factor
Substitution, Average Firm Size and Economic
Growth.” Small Business Economics, in press
After the study of various theories on economic
development and findings of researchers I can say that
economies in middle of economic development is
negatively related to economic development as at this time
maximum people shift from self employment to wage
employment.But the case is different in developed
ecomies .their we can find people wil shift from wage
work to entrepreneurial activity.
“Countries like Uganda, Peru and Ecuador are all
countries with high levels of entrepreneurial activity but
very low levels of per capita income. Countries with much
lower levels of entrepreneurial activity (for example,
Brazil and Argentina,) appear to have higher levels of per
capita income and are moving toward lower levels of
entrepreneurial activity. The middle represents a set of
countries that appear to be transitioning from a middle-
income level to a higher-income level and some haverising
levels of entrepreneurial activity. High-income countries,
such as Germany, France, Belgium, Italy and Finland,
have relatively low levels of entrepreneurial activity. Two
outliers are Japan, with one of the lowest levels of
entrepreneurial activity, and the U.S., with one of the
highest levels of entrepreneurial activity.”
Entrepreneurship and Economic Development: Do
they have positive relation?
To find out this we need to find type of entrepreneurial
activity countries are engaged in. Global Entrepreneurship
Monitor (GEM) data is used to identify the type of activity
in countries at different levels of development. The intent
of GEM is to systematically assess two things:
the level of start-up activity and the prevalence of
new or young firms that have survived the start-up phase.
First, start-up activity is measured by the proportion of the
adult population (18-64 years of age) in each country that
is currently engaged in the process of creating a nascent
business.
Second, the proportion of adults in each country
who are involved in operating a business that is less than
42 months old measures the presence of new firms. The
distinction between nascent and new firms is made in
order to determine the relationship of each to national
economic growth.
For both measures, the focus is on entrepreneurial activity
in which the individuals involvement have a direct
ownership interest in the business. Opportunity
entrepreneurship represents the voluntary nature of
participation and necessity entrepreneurship reflects the
individual‟s perception that such actions presented the best
option available for employment. Opportunity
entrepreneurs expect their ventures to produce more high-
growth firms and provide more new jobs. countries with
high levels of necessity entrepreneurship get ranked the
same as a country with low levels of entrepreneurship.
countries where more entrepreneurship is motivated by an
economic opportunity recognized than by necessity have
higher levels of income. We are finding How is
entrepreneurship good for economic development?” for
his we need to find meaning of entrepreneurship and self
employment.entrepreneurship may not lead to economic
development as there is no mechanism to link the activity
to development.We have learned from the studies and
trend that self-employment declines as economies become
more developed. So we can conclude that when economies
remove people from self-employment ,there can be an
increase in development.
To quote Adam Smith, “when the division of labor
increases, so will economic development.”
The findings and previous studies clearly reflects that the
ratio of opportunity-to-necessity entrepreneurship is a key
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indicator of economic development. When more of the
population gets involved in opportunity entrepreneurship
and more people leaves necessity entrepreneurship which
is basically self employment, we can see the raising level
of economic development.
Relationship between entrepreneurship, corporations,
and economic development
We know that Corporations influence economic growth of
the country by creating new plants which in turn provides
ample of job opportunities. Researchers states that earlier
analysis of economic development use to focus on big
corporations ignoring the innovations that comes from
small business .the potential entrepreneurs if thinking to
start a business had to refer to Entrepreneurial Framework
Conditions which means need to business is influenced by
additional characteristics within the existing business
environment. This have a significant affect on
entrepreneurial process as this may lead to increase in
innovation and competition having direct impact on
national economic growth. Entrepreneurship is vital for
larger economy. A nation‟s economic development
depends on successful entrepreneurship joint with the
force of established corporations. However, the beneficial
value of this mechanism varies with the national income,
as measured by GDP per capita. At low levels of national
income, self-employment provides job opportunities and
scope for the creation of markets. As GDP per capita
income increases, the emergence of new technologies and
economies of scale allows larger and established firms to
satisfy the increasing demand of growing markets and to
increase their relative role in the economy. It is also
observed that if people find stable employment, it will
decrease business start ups. Studies states that in high
income economy, where lower costs and technology
deleopment is fast, entrepreneurs plays competitive
adnantage. Therefore entrepreneurs in different countries
having different levels of GDP per capita face different
challenges. This means conditions and framework for
entrepreneur in one country may not be favourable and as
effective in other region.
How balance can be made between GNF and EFC to
ignite economic growth?
After studying various research papers and views of
various economist it can be said that a proper balance
should be maintained between the General National
Framework Conditions and the Entrepreneurial
Framework Conditions which basically depends on the
level of economic development of the country. Countries
who are less developed need to focus and strengthen more
small and medium sized sector rather than entrepreneurial
framework conditions. Foreign direct investment should
be employed in underdeveloped countries to help people
leaving agriculture and self-employment. A strong
attention to paid on education and training, both at the
elementary and secondary levels. Developing countries
with less and weak education background will end up in
necessity entrepreneurship. Developing countries require
a more balanced approach to both the National Framework
Conditions and the Entrepreneurial Framework Conditions
. Economic development of a country should focus and
strengthen the conditions that would improve
infrastructure, labour market, financial market, rules and
policies, which will help in building a pillar for
entrepreneurship environment and develop management
skills. These conditions are also of value to attract foreign
direct investment that will help generate employment,
technology exchange, improve imports -exports and tax
revenues. For developed economies, the focus shifts to
strengthening the Entrepreneurial Framework Conditions
if they want to be entrepreneurial economies. Further it
could be concluded that Entrepreneurial activity in
developed countries should focus on high value-added,
high technology, innovation ,higher education system
,research and development and technology
commercialization.
REFERENCES
[1] www.gemcomnsortium.org
[2] P.D. Reynolds, N. S. Bosma, E. and Autio,
“Global Entrepreneurship Monitor: Data
Collection Design and Implementation 1998-
2003.” Small Business Economics, 2005.
[3] Z.J. Acs, P. Arenius, M. Hay and M. Minniti,
2004 Global Entrepreneurship Monitor. (London
Business School and Babson College. London
U.K. And Babson Park, MA, 2005).
[4] M. Syrquin, “Patterns of Structural Change.” In
Handbook of Development Economics, edited by
H. Chenery and T.N. Srinivasan, 203-273.
(Amsterdam / New York: North-Holland., 1988)
[5] J. Acs and A.Varga, “Agglomeration,
Entrepreneurship and Technological Change.”
Small Business Economics, 2005.
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Does the Self-Employment Rate Vary Across
Countries and OverTime?” Discussion Paper No.
871, Center for Economic Policy Research,
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[7] D.W. Jorgenson, 2001, “Information Technology
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Review.
[8] M. Aquilina, R. Klump and C. Pietrobelli, 2006,
“Factor Substitution, Average Firm Size and
EconomicGrowth.” Small Business Economics,
in press.
[9] Z. Acs, D. Audretsch, P. Braunerhjelm and B.
Carlsson, 2004, “The Missing Link: The
Knowledge Filter and Entrepreneurship in
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Endogenous Growth.” Discussion Paper, Center
for Economic Policy Research, London.
[10]P. Sharma and J.J. Chrisman, 1999, “Toward a
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[11]R. Sternberg and S. Wennekers, 2005, “The
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[12]Cooper, 2003 “Entrepreneurship: The Past, The
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[13]M. Casson, “Entrepreneurship, Business Culture
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entrepreneur: mainstream views and radical
critiques,
[14]D. Audretsch, “Innovation and Industry
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