James Cook University BU2005 Entrepreneurship Lecture note.ppt

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James Cook University BU2005 Entrepreneurship Lecture note.ppt

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James Cook University BU2005 Entrepreneurship Lecture note

* By Insight Media DVDEntrepreneurship in New Millennium * Encouraging entrepreneurship Importance to economic development of national economies widely acknowledged * This lecture examines the social and economic process behind entrepreneurial activity and its impact on local, national and global cativity. We will focus on defining the key concepts of enterprise, entrepreneurship and entrepreneurs. Schumpeter in the 50’s stated that the future growth in economies will be in the surge of entrepreneurial endeavours form innovation. Porter in the 80’s reconfirmed the with his “Competitiveness of Nations” and the importance of geographical location in innovation creating competitive advantage and the role of the entrepreneur. OECD has since committed a wealth of research into this area. Governments and economists from various countries have recognised the Entrepreneurship and innovation are among the key elements in the process of regional and thus national economic development and is vital for a nation’s ability to maintain competitiveness. With the recession of the late 70’s early 80’s, saw the end of Keynesian economics “that bigger is better – economy of scale”. The multinational were slowly losing global presence to small adaptive and flexible fast paced SME’s, in the mid 1990’s with the advent of reduced costs in and the ease in connectivity networks, the entrepreneurial activity increased and became the main employer and source of productivity and economic wealth of nations. From 1980 – 1999, US lost approximately 5 million jobs for downsizing in the large coprorations, however newly formed SME’s saw the creation of 34 million new jobs. In the 90’s 67% of all innovation came from SME’s and entrepreneurial activity. Most of these firms being in existence for less than one year. There are many various methods for measuring entrepreneurial activity and its impact. Some of the methods have been measuring the number of start-up efforts, incorporation of firms,