How Entrepreneurial Business Organization Affect a Growing Economy.

3384 Words 14 Pages
TASK: TERM PAPER.

COURSE: BUS: 1010: INTORDUCTION OF BUSINESS ORGANIZATIONS.

SEMESTER: SPRING 2015

INSTRUCTOR: NAMADA JULIANA

ADM NO: 644067

NAME: BRIAN KIPRUTO CHELIMO

Table of Contents Abstract 3 2.0 Forms of Entrepreneurship 4 1.0 Introduction 4 1CREATION OF EMPLOYMENT 4 2Poverty reduction 5 3Socio-economic and political solutions 6 4Economic growth and Development 7 2.1 Entrepreneurial Effects in the Growth of Economy 8 Conclusion 9 REFERENCES 10

Abstract
According to Chell & Ozkan, (2010), an entrepreneur is someone who is willing to bear the riskofa
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It is through entrepreneurship that new source of supply are discovered and creation of new business organizations that directly affect the economy. Creation of new business opportunities through entrepreneurship, productivity and innovation leads to economic growth. This therefore means that when there is more entrepreneurship in an economy more growth is expected. 2.0 Forms of Entrepreneurship
According to Carree and Thurik (2002), entrepreneurs in history have often been represented in many faces and assumed different roles. As identified by scholars such as Schumpeter, Kirzner and Knight, entrepreneurs can be termed as innovators, profit opportunists and uncertainties and risk takers respectively. Schumpeter drew his attention to understanding an entrepreneur as an innovator. As an innovator, the entrepreneur performs new combinations which Schumpeter called enterprises (Karlsson, Friis & Paulsson, 2004). An entrepreneur according to Kirzner perceived profit opportunities. This role is what was labeled Kirznerian entrepreneurship. The last role of an entrepreneur is that of assuming the several risks and uncertainties which may be associated with running a business. This role is labeled Knightian entrepreneurship. As the individual introduces a new product in the market or starts a new business, this entrepreneurial role can be described in terms of the three labels. As posted by Audretsch & Lehman (2005), the

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