Refer to both theory and examples from the business world to support your discussion.
In today’s economy, entrepreneurship is an important subject and entrepreneurial abilities have become a pivotal requirement both nationally and globally. However, enterprises that succeed mostly do so as they are capable of change for the better, through innovation. So for an enterprise to be successful innovation is required. Creativity and innovation is at the heart of the 21st century. For example in the United States alone, more than 16,000 firms operate their own research labs! These successful …show more content…
This a result increased employment in America, increased travel around the country, helped all businesses reduce costs, and raised the standard of living of the middle-class American family who could now afford a car, which had once been a luxury. All these factors contributed to of economic development of the US economy, which was booming at the time.
Therefore, it can be firmly stated that a strong connection between entrepreneurship, innovation and economic development does exist, and that they are often times co-occurring. A change in one can have an effect on the other; however, they are not dependent upon on another. For example, economic develop does have other factors contributing to it, aside from entrepreneurial gain. Secondly, I believe that entrepreneurships can succeed without innovation. This is where I disagree with Schumpeter’s theory of Creative Destruction. In this, Shumpeter claims that an entrepreneur has to do something novel to be successful, however in world of business there have been instances that prove his theory wrong. For example, in the 1990s’s, a team of entrepreneurs from the US implemented a set of multi screen cinemas in Mexico City called Cinemax, which was a well-known and established business model in the US. This was very successful in Mexico City, and the chain of cinemas was sold for $300 million