Discuss the Relationship Between Entrepreneurship, Innovation and Economic Development. What Role Do Creativity and Problem Solving Play in This Relationship? Refer to Both Theory and Examples from the Business World to Support Your Discussion.

1637 Words Oct 16th, 2012 7 Pages
Discuss the relationship between entrepreneurship, innovation and economic development. What role do creativity and problem solving play in this relationship? Refer to both theory and examples from the business world to support your discussion.

Entrepreneurship, innovation and economic development are linked to one another through different factors and characteristics of each other. Entrepreneurship “is the result of what entrepreneurs do and refers to events and their economic impact” (Lumsdaine E, Binks M 2007 P11). This definition demonstrates that entrepreneurship is an outcome of an act of a person who has a particular quality. This act may be taking initiative and creating a business idea from an opportunity that has been seen. It
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It meant new jobs were created and so people would increase their spending, having a positive effect on the economy. As time went on, it increasing tourism in other countries as well as America, therefore it also would have affected other economies. This idea was then used by many other companies and airlines were formed, which had a great impact on the economy as there now was a large increase in air travel and tourism. As well tourism, international businesses grew as they were easily able to travel between countries in short amounts of time. This shows how one man’s idea and creativity has changed the world and the way we are able to travel.
Another famous man who can be classified as an entrepreneur is the man who created eBay. Pierre Omidyar is the man who had the idea of “a powerful marketplace for the sale of goods and services by a passionate community of individuals and small businesses.” (eBay 2010). Pierre Omidyar has an obvious entrepreneurial trait as he identified a business idea that consumers have been looking for. “As an early Internet enthusiast, Pierre knew that people needed a central location to buy and sell all kinds of items on a level playing field and to meet other users with similar interests.” (eBay 2010). His idea generated when the internet was strongly merging, therefore he had the advantage of being successful as it is unlikely that there were many other businesses on the internet that offered this service.