Joseph Schumpeter

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. Date of submission: 26 November 2010 Name: Chen Wanxin School: the University of Nottingham, Ningbo, China Module convenor’s name: Maris Farquharson Module title: Entrepreneurship and Business Module code: P11440 (2010) Length: 1885 words Entrepreneurship

The revolution in economic structure is known as creative destruction. This term was invented by Joseph Schumpeter in 1950 who considered it as the essential factor of capitalism. According to him, “fundamental impulse that sets and keeps the capitalist engine in motion comes from the new consumers ' goods, the new methods of production or transportation, the new markets, the new forms of industrial organization that capitalist enterprises create”. This is a fundamental process, that new product

of government and ‘protection-against-tyranny’ (Held, 1987). There are three main strands of elitism: classical, democratic and modern elitism. Democratic elitism is the most desirable form for government and is associated with Max Weber and Joseph Schumpeter. They argue for the constant competition between elite rulers and groups which results in the emergence of a competent ruling class. Constant elite competition is the central concept of Democratic elitism, as it is the reason for many of the

Entrepreneurs innovate. Innovation is the specific instrument of entrepreneurship. The act that endows resources with a new capacity to create wealth. © Peter Drucker. Innovation distinguishes between a leader and a follower. © Steve Jobs, Apple. As time goes on, nothing remains the same in our world. Seasons, weather, relationships, human emotions, everything is affected by time- everything keeps changing. The same thing is in market industry. The progress is unstoppable and

As entrepreneurs, we are expected to transform, motivate, and thrive. We are seen as the movers and shakers of multibillion pound industries. However, one question always remains, how? The answer is innovation. According Joseph Schumpeter, an entrepreneur creates innovation; not only through invention but by competition to improve technology, finance and organization. Innovation in its simplest form is the generation of a new idea and this idea’s implementation into a concrete form. Innovation can

vital existence of small and medium sized enterprises (SMEs) to maintain a healthy dynamic market economy. In 1911, Joseph Schumpeter, an influential economist, published In the Theory of Economic Development and highlighted that small entrepreneurial firms act as the seedbed of innovation and technology discovery, however in Capitalism, Socailism and Democracy, published by Schumpeter in 1942, contradict the statement and form the current accustomed concept that large corporations are the engine to

Over time many definitions for the term ‘entrepreneurship’ have been given and interpreted, but there is continued discussion on its exact meaning. Blundell, Lockett, and Schumpeter have all offered their definition, and even with their statute in the academic community their definitions are interpreted in different ways. Although entrepreneurs may not be aware of these definitions, they engage in their own version of what entrepreneurship is, and researchers found that they show characteristics

Schumpeter denoted entrepreneur as a key in the economic growth and entrepreneurial process as a prime element in the progress and advancement of economy. Again he stated that entrepreneurship is an essential element for the development of any economy and economic and political framework condition would not affect the growth. The benefits due to entrepreneurship to community will be greater in those economies where entrepreneurs have flexibility to operate, to expand their ideas, and to obliterate

For decades now Silicon Valley has been the capital for major US technology firms and has become a thriving ecosystem for innovation. Household names in tech ranging from Apple to WhatsApp continue to drive innovations that improve or replace today’s major industries and business practices. Although many start-up companies fail to gain traction or widespread success, a handful of companies have risen to world-wide success and multi-billion dollar valuations at a pace never before seen in business

risk which is no objective measure of probability of gain or loss. According to Burke (2006), entrepreneur can be defined as a person who habitually creates and innovates to build something of recognized value around perceived opportunities. Joseph Schumpeter (1883-1950) said that entrepreneur is innovator who is the central figure in advancing the wealth of nations and creating dynamics disequilibrium in the global economy. He pointed out that knowledge underlying the innovation need not be newly