Question

What are the main requirements (ingredients) for the spread of entrepreneurship and innovation in an increasingly global economy?

Answer 1

Entrepreneurs are driving innovation-often much faster than existing rivals. By definition, successful entrepreneurs have figured out a way of doing things better. They have challenged the status quo, asked tough questions and have been competing with established companies. When a completely new industry is formed the chances are that a businessman is responsible. If entrepreneurs can innovate like this, they accelerate economic growth and create jobs at a faster rate than ever before.

Entrepreneurs create new businesses that meet unmet market needs and demands. That is, there is a chance to provide a product or service that is not currently in existence or that is available otherwise. These business starters are referred to by economists as "opportunity" entrepreneurs to distinguish these individuals from those who start businesses for lack of better job opportunities. So-called "opportunity" entrepreneurs, who initiate new businesses in response to market needs, are key players in promoting economic growth in a region

New companies need to hire staff. They create jobs and these economic opportunities enhance and support communities by enhancing quality of life and overall living standards. Technology has allowed small businesses run by entrepreneurs to expand into regional and global markets. Such industries contribute directly to the growth and earnings of a country as new companies export goods and services to nearby regions. This revenue gain strengthens an economy and promotes a population's overall welfare.

More recently, our concept of innovation has grown to include the development of new technologies, business models, pricing strategies, and market routes. While the role of startups and young tech firms in job creation is well known, their contribution to overall productivity is less evident and not as frequently discussed.