Journal of Research in International Business and Management

Entrepreneurship as a Driver of Innovation and Economic Development

Kunal Mehra^{* 1}Department of Entrepreneurship, Nova School of Business Studies, India
^*Corresponding Author:
Kunal Mehra, Department of Entrepreneurship, Nova School of Business Studies, India,

, Manuscript No. Kunal Mehra ; , Pre QC No. Kunal Mehra ; , QC No. Kunal Mehra ; , Manuscript No. Kunal Mehra ; Published: 24-Dec-2024

Abstract

Entrepreneurship plays a crucial role in fostering innovation, generating employment, and promoting economic growth. This study examines entrepreneurship as a dynamic process that involves opportunity recognition, risk-taking, and value creation. It explores the contribution of entrepreneurial activities to business development and competitiveness in both emerging and developed economies. The paper highlights key factors influencing entrepreneurial success, including innovation capability, access to finance, institutional support, and entrepreneurial mindset. It also discusses the challenges faced by entrepreneurs in highly competitive and uncertain environments. By integrating theoretical perspectives with practical insights, this study emphasizes the importance of entrepreneurship in driving sustainable economic development. The findings suggest that supportive ecosystems and effective policy frameworks are essential for nurturing entrepreneurial ventures and enhancing their long-term impact on economic progress.

Key Words

Entrepreneurship, Innovation, New Venture Creation, Economic Development, Risk-taking, Entrepreneurial Mindset, Business Growth, Startup Ecosystem

Introduction

Entrepreneurship refers to the process of identifying opportunities and transforming them into viable business ventures. It involves creativity, innovation, and the willingness to take risks in uncertain environments. Entrepreneurs play a significant role in economic development by introducing new products, services, and business models. Their activities contribute to job creation and improved productivity (Audretsch, 2012).

Innovation is a central element of entrepreneurship that enables firms to differentiate themselves in competitive markets. Entrepreneurial innovation drives technological advancement and market transformation. The entrepreneurial mindset includes traits such as proactiveness, resilience, and adaptability. These characteristics help entrepreneurs respond effectively to challenges and changing market conditions (Fernandes et al., 2022).

Access to financial resources is critical for entrepreneurial success. Funding constraints often limit the growth potential of new ventures, particularly in early stages. Institutional support, including government policies and regulatory frameworks, influences entrepreneurial activity. Supportive environments encourage startup formation and sustainability.

Entrepreneurship contributes to regional and national competitiveness by stimulating industrial growth and knowledge diffusion. Clusters of entrepreneurial activity enhance innovation ecosystems. Globalization has expanded entrepreneurial opportunities by enabling access to international markets and global networks Frese, & Gielnik, 2023). Entrepreneurs increasingly operate beyond domestic boundaries.

Digital technologies have transformed entrepreneurship by lowering entry barriers and enabling scalable business models (WAHYONO et al. 2023). Technology-driven startups have become major contributors to economic growth. Overall, entrepreneurship is a key driver of innovation and development. Societies that encourage entrepreneurial activity are better positioned to achieve sustainable economic progress (Ratten, 2023)

Conclusion

Entrepreneurship is a powerful force that drives innovation, employment, and economic development. This study highlights the importance of entrepreneurial mindset, institutional support, and access to resources in sustaining entrepreneurial success. By fostering supportive ecosystems and encouraging innovation-driven ventures, economies can enhance competitiveness and achieve long-term growth.

References

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