ENTR 1120 : Entrepreneurship Assignment : Promotion of Innovation

Introduction:

Entrepreneurship has played a vital role in the growth and development of economies by being a means by which economic growth can be boosted and employment can be created. It has given way to lead to new research and field of study through advancements in technology. Governments have also played an active part in boosting entrepreneurship so as to lead to a fast growing economy. The following sections discusses the contribution of entrepreneurship and the role played by the government to develop the same.

Discussion

Several policy makers believe that the promotion of innovation, competition and entrepreneurship will result in economic growth. Therefore to reduce unemployment, strategies should be devised to encourage entrepreneurship among the youth and several government policies have been devised around it. There has been growing interest from the side of the government towards small business developments and entrepreneurship as a potential solution to control unemployment and economic growth (Moses 2017). This has given rise to a new field of research which government policies support as government over the world want to replicate the Silicon Valley the growth found in entrepreneurial ecosystems.

Entrepreneurial ecosystems are conditions which foster economic prosperity and lead to the creation of welfare by bringing people together. Government policies should be aimed to avoid direct intervention that would affect change and this can be done by either the traditional approach or the growth oriented approach. The policies try to increase the total number of firms using start-up programs, investment in research and development, venturing in capital financing and technological transfer (Dorin and Alexandru 2014). Transactional natured programs include support programs, grants, business or technology incubators and tax incentives. These programs cannot guarantee success like direct intervention. Conversely, growth oriented approach focuses on the growth of the firms through entrepreneurial relationship and in turn understand their networks and ways to create expansion at international, national and local levels (Acs, Autio and Szerb 2014). They should aim at linking customers, suppliers and others playing a key role within the production system. Government ministers also have a crucial role to play in causing innovation and enterprise growth. These ministers direct the government agencies and departments to develop effective policies and focus on the problems faced.

Activities that add some value to the customers are value adding activities. They bring about change in the form, function or fit of a product like the product designing, raw material ordering, engineering drawing, innovation, decisions and more services that customers would be willing to pay for. Non value services on the other hand include inspection, testing, reviewing, reporting, counting, filling information, getting approval from several heads, reporting which a customer does not specify and are usually unwilling to pay for (Cavusgil and Knight 2015). These activities are identified as efficiency and improvement initiatives using management techniques.

Conclusion:

To sum up, entrepreneurship has been included in most government policies over the years as it yields economic growth and development along with reduction in unemployment. The governments should make entrepreneurial activity a focus in the policy making by developing policies and providing for leadership that is efficient and strong.

References:

Acs, Z.J., Autio, E. and Szerb, L., 2014. National systems of entrepreneurship: Measurement issues and policy implications. Research Policy, 43(3), pp.476-494.

Cavusgil, S.T. and Knight, G., 2015. The born global firm: An entrepreneurial and capabilities perspective on early and rapid internationalization. Journal of International Business Studies, 46(1), pp.3-16.

Dorin, C. and Alexandru, G.S., 2014. Dinamics of the entrepreneurship concept. Literature review. The Annals of the University of Oradea.

Gerrard, N., Orji, U.B., Akpan, E.B. and Moses, A., 2017. Politics and Entrepreneurship in a Developing Economy. Covenant Journal of Entrepreneurship, 1(1).