The Importance of entrepreneurship for economic growth of a nation

The role of entrepreneurship in economic growth is crucial, however, they may be small companies. They contribute to job creation and economic growth. According to global data, they are creating more jobs compared to the large companies or enterprises. In this paper, we attempt to investigate the role of entrepreneurs on economic growth in a country. Using empirical data from many papers, this study reveals that a significant portion of economic growth rates can be attributed to high-expectation entrepreneurs exploiting national investments in knowledge creation and regulatory freedom. These studies provided rather clear evidence on the positive relationship between entrepreneurship and growth. Joseph Schumpeter pointed out a century ago that entrepreneurs are often innovators, bringing new goods and technologies to markets, opening up new markets, processes, and ideas, and commercializing new knowledge. Where possible and appropriate, throughout the paper particular attention is devoted to the specific features characterizing entrepreneurship in developing countries.

Keywords:

Entrepreneurship , Economic growth , Development , Innovation