BUSINESS MANAGEMENT Midterm: How Entrepreneurship Affects the Economy

• School: Cavite State University
• Department: Business
• Course: BUSINESS MANAGEMENT

Document Summary

Entrepreneurship is a blanket term related to starting a business. While there are some complicating factors to the relationship between entrepreneurship, economic growth, development, and welfare, discussed below, the increase in economic growth from entrepreneurship is considerable. It is not, however, a magic bullet, and as discussed below broader economic conditions outside of entrepreneurship are important in determining whether economic growth occurs. Entrepreneurial efforts have forced new social, political, and economic changes, holding out the promise for new innovations that will address intractable social problems such as climate change and structural racism. Notably, however, the results can vary, sometimes not creating as much social justice or positive development outcomes as initially promised. Entrepreneurship refers to the pursuit of opportunity beyond resources controlled. Entrepreneurship has become increasingly socially conscious, taking stock of the impact of entrepreneurial activity on societal issues and tending to view the possibility of addressing those issues as an important function of entrepreneurship.