The Role of Entrepreneurship in Financial and Economic Growth
Create an 8 pages page paper that discusses the role of entrepreneurship in financial and economic growth. Entrepreneurship is a specific art or act that helps an individual to undertake several innovative strategies, such as introducing new things, business, and finance acumen. Effective entrepreneurship helps an entrepreneur to transform innovations into economic goods and services. Entrepreneurs play important roles in the new business establishment. It is true that the leading entrepreneurs use technology, innovation, and systematic strategies to cultivate positive impact. Capable entrepreneurs try to learn in order to find, select, elaborate, and communicate the necessity of several effective new opportunities that can create a successful business venture. Successful entrepreneurs generally describe the precious contribution of a new venture and propose a design of a business model that can be prolonged by several potential competitive advantages. After the development of the business model, the venture team develops a strategy or road map. This developed road map or strategy will help to commercialize the new developed products or services in the potential and competitive market place with a combination of several sustained and stabilized competitive advantages (Byers, Dorf and Nelson, 2012). . According to several common myths, it can be stated that the entrepreneurs start their business with the break-through invention and take uncalculated risks in order to accomplish business goals. According to Allen (2011), entrepreneurs should have an effective and detailed business plan with broad research findings. Moreover, entrepreneurs need to have sufficient financial resources and years of work experience (Allen, 2011, p.56). Taking uncalculated risk is the major objective of a successful entrepreneur while starting a new venture. According to Sahay (2009), there are several important driving forces that create potential opportunities for the new venture (Sahay, 2009, p.121). Securing sufficient capital is an important driving force. In the early stage of business development, entrepreneurs need to secure business capital. They can think about several options like direct investment or investment through venture capitalists. In terms of investment through venture capitalists, the entrepreneurs should design an effective business plan that can attract venture capitalists. Reformed securities regulation is another major driving force. It helps the entrepreneurs to find business capital for their new venture. Creating entrepreneurial networks and industry clusters can help entrepreneurs to develop business contacts. Through this process, the entrepreneurs can fill specific industry niches within the networks and clusters. This process is highly beneficial to entrepreneurs and economic development strategies. .