The Role of Entrepreneurship in Economic Growth and Development

Abstract

Purpose: This review research paper aims to explore the significance of entrepreneurship in fostering economic growth and development. It examines the theoretical underpinnings, research methodologies, and empirical findings related to the role of entrepreneurship in various contexts.

Theoretical framework: The paper draws upon established economic theories, such as Schumpeter's theory of creative destruction and Kirzner's theory of entrepreneurial discovery, to build a comprehensive theoretical framework. It also integrates contemporary perspectives on entrepreneurship, including social entrepreneurship and innovation theories.

Design/methodology/approach: A systematic review of the existing literature is conducted, encompassing a wide range of academic publications, including scholarly articles, books, and reports. The research synthesizes and critically analyzes the findings from diverse empirical studies to provide a comprehensive understanding of the relationship between entrepreneurship and economic growth.

Findings: The review reveals that entrepreneurship plays a crucial role in stimulating economic growth and development through various mechanisms. Entrepreneurs generate employment opportunities, drive innovation, create value, and enhance productivity, contributing to overall economic prosperity. Moreover, entrepreneurship fosters inclusive growth, reduces income inequality, and promotes social mobility.

Research, Practical & Social implications: The findings of this paper have several implications for research, practice, and society. They emphasize the need for policymakers to create a favorable ecosystem that supports entrepreneurship, including access to finance, education, infrastructure, and supportive regulations. Furthermore, entrepreneurs and aspiring entrepreneurs can benefit from understanding the key determinants of entrepreneurial success and the potential obstacles they may face.

Originality/value: This research paper provides a comprehensive and up-to-date synthesis of the existing literature on the role of entrepreneurship in economic growth and development. By highlighting the multifaceted contributions of entrepreneurship, it contributes to the understanding of the complex dynamics between entrepreneurship, economic growth, and societal well-being.