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Role of Entrepreneurship and Innovation , Ref No: 1360
Introduction
Antoine W. Van from World Bank has defined emerging market economy (EME) an economy with per capita income from lower to middle. Countries have undertaken numerous reforming programs that lead to stronger and improved economic levels. These are reflected through capital income. Internal and external investments attracted by means of efficiency, transparency and present and future performance prospects (Hoskisson, Eden, Lau and Wright, 2000).
Investment in EME also has a high risk associated with the possibilities for some economies fall back, as a result of change in government policies. According to Focus Economics (2015), Role of Entrepreneurship and Innovation India is one of the leading emerging economies around the world as it has exceeded the growth rate of China in 2015 and it has one of the largest economies among the emerging countries as well. The size of the economy is $2056 billion as of year 2014 and it has experienced growth rate of 7.3% in the respective year. The GDP of India has grown at a consistent rate over the years and the rate of investment in the economy has also been high over the last few years. The role of entrepreneurship has been significant in the economic growth of India as the local businesses have grown steeply in the recent years and their success has enabled the economy to sustain such higher rate.
The essay discusses India as an emerging economy and analyzes the role of entrepreneurship in economic growth of India and the state of industries in the country. The essay is based on two theories i.e. entrepreneurship in emerging economy and Characteristics of Emerging Economy and Opportunities for Entrepreneurship in India as discussed in the body of the essay below.
Theory 1: Entrepreneurship in Emerging Economy
In the view of Jones and Spicer (2009), the entrepreneurship plays a significant role in an economy and the role is even greater in the case of emerging economies. The role of entrepreneurs is discussed in detail below.
Who is an Entrepreneur?
Entrepreneur exercises initiative through the implementation of a project to take advantage from available opportunities, decides what, when and how much of a good or service will be produced for the target market. The size of the economy is $2056 billion as of year 2014 and it has experienced growth rate of 7.3% in the respective year.
By position an entrepreneur holds majority of shares in an enterprise or commonly a sole proprietor, a partner deemed to be an Entrepreneur. He/she plan, implements, monitors and controls the business activities.
Entrepreneurs convert business opportunities available in an economy, increase return on capital. They harmonized blend of sources with resources while having focus toward positive outcome.
Jones and Spicer (2009) claimed the dark side of the image carries the story, that it is unlikely that who tries to start a business or take initiative may have required traits to become a successful as predecessors where. Other hurdles to success are restricted access to Investment, Role of Entrepreneurship and Innovation lack of credibility (being new), and discouraging regulatory blocking, including market entry level friction and the can also be lengthy formalities for licensing or permits
How entrepreneurs impact economy
The economic condition provides opportunity to benefit enterprises, either by investing or by de-investing (closing unproductive parts of the business). Emerging marketing embraces foreign investment as a result of high returns compared to developed or underdeveloped economies.
They provoke competition growth as new businesses intensify competition for existing market holders. Lower pricing and product varieties prove advantageous to costumers. This might reciprocal effect on end customers in form or quality. Studies have established a measure of market trends, which identifies the impact of new business formation on existing firms and consumers buying patterns.
European Central Bank announced that the studies indicate that Brazil, Russia, India and China (BRIC), collectively, could represent more than half the size of the six largest industrialized economies by 2025, and it may surpass them in less than 40 years………
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