完整word版final essay.docx

完整word版final essay.docx

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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