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The Importance of
Entrepreneurship in Economic Development and Growth
The Importance of
Entrepreneurship in Economic Development and Growth
Name
Institution Affiliation
According to Kirzner (1973), the answer to
the question, what causes the economic growth and development? Can raise
oversimplification when the development and growth are not sufficiently
differentiated. Economic growth of a country is the increase of the output of
goods and services that are produced by the population over a specified period
of time. On the hand, economic development is the noticeable improvement in the
economic well-being of the people in a particular country and the associated
improvement in the quality of life.
To understand the reasons behind the
differences in the rate of growth and development in different nations, it will
be imperative to analyze the role that entrepreneurship play in achieving the
growth and development agendas. First, the contribution of entrepreneurship to
the development of a country’s economy cannot be ignored since it has become
the sole reason why a nation’s economy may thrive or deteriorate.
Entrepreneurship presents an opportunity for the economy to leverage the market
profits in both local and international trade. Besides, when a nation has a
high influence on the control of commerce for strategic commodities such as
gold, silver, and other types of machinery, would make it competitive in that
particular market hence increasing the (GDP) gross domestic product (Schloss,
2008).
Second, in his hindsight, Rocha (2004)
reveals that as far as entrepreneurial activities are concerned, decentralized
of entrepreneurship within a country would continue to enjoy improved lifestyle
for its citizen which comes as a result of economic growth. Rocha argues that
decentralization of the economy would give the individual a chance to act their
full entrepreneurial insight, and by doing this, they would get a huge reward,
create an environment that can trigger further insight into entrepreneurship,
and consequently enabling a large number population to participate in boosting
the gross domestic product. In its role, entrepreneurship creates an avenue
through which most people in the society can contribute in every possible way
to enable economic growth and development.
Finally, the environment in which the economic growth takes place is highly dictated by the entrepreneurial spirit within that particular economy. Apparently, the primary tool that is used by most nations in the attempts to correct the balance...
