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完整word版finalessay@#@ThedisappearingofEntrepreneurshipisagratefuldevelopmentinthemodernhistory.Sincethefirstindustryrevolution,technologies,economies,andpolicieswasconstantlydevelopingandtheenterprises,whicharereferredtothesmallandmediasizedenterprises(SMEs)now,appeared.Untilnow,theSMEsoccupymostofthemarketinandeconomies.Forinstants,99%firmsorcompaniesareSMEsinEurope(EuropeanCommission,2009).Theyexistanddeveloprelyingoninnovationsandcreativities.Atthesametime,40%to50%ofGDPinglobalarecontributedbythesefirms(GovernmentofIndia,2006).Entrepreneurship,innovationandeconomyaredevelopeddependingoneachother.Theinnovationsdefinetheentrepreneurship,andentrepreneurshipdevotetoeconomicdevelopment.Whileeconomiesinfluencetheenvironmentinwhichenterprisesandinnovationscanbeevolved.Thisessaywilldiscusstherelationshipbetweenentrepreneurshipandinnovationandeconomicdevelopment,alsoanalyzestheroleofcreativityandproblemsolvinginthisrelationship.@#@Thefirstpointiswhatentrepreneurshipisandwhatinnovationis.Entrepreneurshipisdefinedbyeconomistindifferentways.Fromthe16thcenturyto17thcentury,RichardCantillonandJeanBaptisteSaydefinethattheentrepreneurshipisaprocessthatpeoplebuythingsatlowerpriceandtheselltheminahigherprice(IumsdaineandBinks,2007).Afterthelateof17thcentury,JosrphSchumpeterandHaveyLeibensteinfoundthatentrepreneurshipisacombinationofdifferentelements,whichisallthepossiblefactorsofproduction—labor,capital,technologiesandsoon(DeakinsandFreel,2006;@#@IumsdaineandBinks,2007).Thiskindofcombinationisbasedonsomethingnew.Theentrepreneursinventnewtechnologies,createnewproductsandservicesorevenemergeanewindustrybydevotingtime,energyandmoney,assumingtheriskanduncertain,gettingadesirableorunsuccessfulresultingwithmoneyandpeople’sattitudes(LumsdaineandBinks,2007;@#@Hisrich,PeterandShepherd,2010).Thisprocessiscalledentrepreneurialprocess.Exceptthedefinitionabove,threemainopinionsaredebatinginthisindustry,thatis,entrepreneursarerisktaker,entrepreneursarereactive,andentrepreneursaltereconomicdevelopment.Innovationforaproductorserviceisnotthedefinitionpeoplethinkasusually,tofinda“realnew”,isakindofnewfromtheold,suchasthejeanswhicharepopularinfashionnow.Theideasforinnovationcancomefromanyaspectintheworld,environmentalissues,energy,economic,social,orevenhealthandinternet.Customers’complaintfortheexistingproductandservices,relevantgovernmentalorganizationsandvisionsinthemarketarealsomainrecoursesfornewinnovationideas.Entrepreneursusuallydevelopanewbusinessfromgeneratingideas,thenfocusononepoint,analyzeandputitintopractice.@#@Fortherelationshipbetweenentrepreneurshipandinnovation,theconceptofentrepreneurialprogresshastobementionedagain.Therearefourstagesinthisprocess,
(1)findingandevaluatingaproblemwithabusinessidea,
(2)makingabusinessplan,(3)utilizingavailableresourcesandproduction,and(4)managementthefinishedenterprise.Moreover,inthisprocess,theentrepreneursshouldhavethepersonalitiesthataretakingrisk,autonomy,controllingability,vision,creativity,innovationandsoon(DeakinsandFreel,2006).However,iftheprocessisobservedaswhole,innovationismentionedoverandoveragainandcreativityplaysaimportantroleforthisprogramaswell.Andthisinnovationisfamousasdisruptiveinnovation,alsocreativedestruction.Thatmeansentrepreneursshoulddestroytheoldproductsormarketsandinventanewonefromthedestroyedone.Innovatorsdestruct,invent,commercialize,andpermanentchange(LumsdaineandBinks,2007).AccordingtotheSchumpeter’stheory,asuccessfulentrepreneurshipisaprocessthatthelogjamsarebrokendown,andinnovationisutilizedtoreplacetheold,existproducts.However,entrepreneursarenotinnovator.Theynotonlyinnovatefromthebasicscience,butalsofindwhatthemarketneeds,focushowthemarketandnewproductdevelop,manufacturetheproduct,andputintomarket(DeakinsandFreel,2003).Although80%ofsmallbusinessstartedbyentrepreneursshowthatinnovationisimportance,technologicalinnovationisnotenoughforentrepreneurshiptoincreasethewealthandvalueofmarket.Byreasonsthatnobodycanpredictwhatwilloccurredtotheinnovationresult,andalsounsuitablechangetocomeintomarket,politicalbarriers,andinsufficientknowledgeaboutthemarketindustrywillpreventfromsuccess.AnexampleoffailureisthevistasystemproducedbyMicrosoft.Vistaisagoodinnovationforthecomputersystemdevelopment.ItexceededtheXPsysteminbothappearanceandperformance,whilet