Entrepreneurship

Entrepreneurship

EntrepreneurshipThis is the process of starting new organizations or revitalizing mature organizations.

EntrepreneurshipIt is the process of discovering new ways of combining resources.

Entrepreneurship It is the capacity for innovation, investment and expansion in new markets, products and techniques.

Economic Growth and Development

Growthis the result of development

Developmentis the process of bringing out the possibilities.

DevelopmentIt is to make more available or usable resources into something like a product.

Developmentdoes not only include economic factors like money, materials and machines.

DevelopmentAlso includes non-economic factors like culture, values, government and education.

The combination of these two factors is applied in creating goods and services that constitutes economic development.

Economic Growth and DevelopmentImproves livelihoods, create job opportunities, and raises household and government income.

Economic Growth and Developmentalso increases the government revenues that can be invested into infrastructures like roads, hospitals, etc.

Developmentand Growth Theories

1. Laissez Faire TeoryLaissez Faire is a French word which means economic freedom

1. Laissez Faire TeoryIt explains that the government should not make any interference in economic activities. Government has a confined role in education, justice and public works.

2. Keynesian TheoryIn a less developed country, it is the role of the government to play the important role in economic development.

2. Keynesian TheoryIt explains that during economic depression the government should put up massive employment through public works in resulting more jobs and income for people.

3. Ricardian TheoryThis explains that the key factor in economic growth is land. Agriculture plays a significant effect in economic development

4. Harrod-Domar TheoryThe key factor in economic growth is the use of physical capital like machines.

4. Harrod-Domar TheoryMore products can be produced using machines. Literally, the production is more efficient with the aid of machines.

5. Kaldor Theory Technology is the key factor for economic development.

5. Kaldor Theory This explains that the economic success of the highly develop countries was due to the application of modern technology in the production of goods and services.

6. Innovation TheoryIt emphasizes the role of innovators or entrepreneurs in the economic development.

6. Innovation TheoryIt is they who give the courage and imagination in handling the old systems and to be able to transform theory into reality.

7. Non-Economic TheoriesKey factors are political stability, efficient public administration, open society, and positive cultural values.

7. Non-Economic TheoriesFor instance, inefficient public administration often results to wasteful and improper use of resources.