BNP Bangladesh Nationalist Young Entrepreneur Forum

eneurship affects economic growth in various ways. It is through entrepreneurship thatimportant innovations enter the market leading to new products or production process whicheventually increases efficiency through bringing competition in the market. This paper discourses theimpact of entrepreneurship on economic growth. Ideas and concepts that emerge from entrepreneursincrease our knowledge and what consumers may prefer through introducing variations of existing products and services in the market. This speeds up innovation of new products in the market as aresult of the longer working hours and more efficient nature of entrepreneurs as their income isdirectly linked with their working input. Entrepreneurship leads to introduction of new goods withnew quality and value. Their innovativeness introduces new ways of production and new markets thathave not been exploited. It is through entrepreneurship that new source of supply are discovered andcreation of new business organisations that directly affect the economy. Creation of new businessopportunities through entrepreneurship, productivity and innovation leads to economic growth. Thistherefore means that when there is more entrepreneurship in an economy more growth is expected. n terms of how entrepreneurship has been a stimulant in economic growth, there existenormous discussions and debates but it is however eminent to realize the importance of constant innovations and rivalry enhancement (Todtling & Wanzanbock, 2003). There has beena problem in defining and measuring entrepreneurial factors and this has further complicated theexact contributions to economic growth. According to Carree and Thurik (2002), the concept of entrepreneurship is multidimensional and largely ill-defined. Understanding the role of entrepreneurship in the process of economic growth will therefore require a framework becauseof the nature of intermediate variables and connections which exist (Bygrave & Minniti, 2000).The best examples of these intermediate variables include innovation, competition mainlycharacterized by exit and entry of firms, variety of supply and particular energy and efforts of invested by entrepreneurs. Other conditions of entrepreneurship also add up when it comes totheir contributions to economic growth (Robbins, Pantuosso, Parker & Fuller, 2000). Theseconditions include personal traits, cultural and institutional factors as shown in Fig 1 below. Figure 1: Appreciating Entrepreneurship
2Entrepreneurship (largely multidimensional)Intermediate Linkages (Innovation, competition variety and entrepreneurialefforts)Conditions (Personal traits, institutional and cultural elements)
Economic Growth