Relationship between entrepreneurship and economic development
Relationship between entrepreneurship and economic development
Within the context of socioeconomic development is the main feature “The process of creating new productive entities have a major impact on socioeconomic development.” Affecting both supply and demand. Furthermore, we generate new productive entities to make some changes in the structure and production. According to Jane Jacobs and some observations can be made on the development of specific regions and communities there are two very basic principles of the development process:
1. Economic development does not occur in general, or decree, or simply for the formulation and publication of a development plan. Economic development occurs in specific people in particular places and at very precise.
2. The goals of economic development must go beyond the temporary rise in employment and income, with only this change does not guarantee continuity. It requires that development is a dynamic and continuous process in which people of the community have the opportunity to use their talents and provide the social system dynamic qualities such as innovation and capacity for self-generated response to events to ensure a happy and full and continuous improvement.
In regional terms, the development demands that the social system acquires dynamic qualities such as:
Elasticity: Ability to respond effectively to changes in the environment, markets, environmental conditions.
Creativity and Innovation: Ability and propensity to innovate and experiment with new forms of operations.
Initiative: Ability, desire and ability to begin and carry out useful projects.
Diversity: Variety of activities that give resistance to changes and decisions are not predictable. Globally, countries, regions and companies which have submitted the best indices of socioeconomic development are those that have been able to implement these four elements in their daily. The following is an opinion on these qualities: Hill Bygrave, a distinguished researcher and professor at Babson College says: “Entrepreneurship is the most important competitive advantage of U.S. is that Americans do better than citizens of other nations” and summarizes the concept in the following expression.