TITLE: ECONOMY APPLIED TO THE ENTREPRENEURSHIP

ABSTRACT:

What is the role of entrepreneurship in economic development? At a minimum the

answer should be able to explain the role of entrepreneurs in the structural
transformation of countries from low income, primary-sector based societies into high-
income service and technology-based societies. More broadly though, it should also be
able to explain the role of entrepreneurs in the opposite pole of stagnating development
(including conflict) and in high innovation-driven growth. Although economic
development lacks a ‘general theory’ of entrepreneurship, which could encompass a
variety of development experiences, much progress has been made in extending the
understanding of entrepreneurship in the process of development. This paper surveys
the progress with the purpose of distilling the outlines for a more general theory of
entrepreneurship in economic development. Entrepreneurship in developing countries
remains a relatively under-researched phenomenon, so by surveying the current state of
research, and by discussing the role of entrepreneurship in dual economy models of
structural transformation and growth, a secondary objective of this paper is to identify
avenues for further research. Finally, the policy implications from the economic
literature suggest that a case for government support exists, and that this should focus
on the quantity, the quality, and the allocation of entrepreneurial ability. Many routinely
adopted policies for entrepreneurship, such as provision of credit and education, are
shown to have more subtle effects, not all of which are conducive to growth-enhancing
entrepreneurship. (Naudé, 2008)

KEY WORDS: entrepreneurship, economic development, small business

INTRODUCTION:

Entrepreneurs are important to market economies because they can act as the wheels of
the economic growth of the country.
By creating new products and services, they stimulate new employment, which
ultimately results in the acceleration of economic development. So public policy that
encourages and supports entrepreneurship should be considered important for economic
growth. 
A large number of new jobs and opportunities are created by entrepreneurship.
Entrepreneurship creates a huge amount of entry-level jobs that are very much
important to turn unskilled jobholders into skilled ones. It also prepares and provides
experienced workers to large industries. The increase in the total employment of a
country largely depends on the rise of entrepreneurship. So the role of entrepreneurship
in creating new job opportunities is huge. 
By bringing innovation to every aspect of businesses, entrepreneurial ventures enhance
production utilizing the existing resources in the most effective ways. Entrepreneurs
develop new markets by introducing new and improved products, services, and
technology. Thus, they help generate new wealth and add more to the national income.
So the government can offer the citizens more national benefits.
(Dave, 2020)

DISCUSSION:

Applied economics applies the conclusions drawn from economic theories and
empirical studies to real-world situations with the desired aim of informing economic
decisions and predicting possible outcomes. The purpose of applied economics is to
improve the quality of practice in business, public policy, and daily life by thinking
rigorously about costs and benefits, incentives, and human behavior. Applied
economics can involve the use of case studies and econometrics, which is the
application of real-world data to statistical models and comparing the results against
the theories being tested.
(Potters, 2021)

What Is a Market?

A market is a place where parties can gather to facilitate the exchange of goods and
services. The parties involved are usually buyers and sellers. The market may be
physical like a retail outlet, where people meet face-to-face, or virtual like an online
market, where there is no direct physical contact between buyers and sellers. There are
some key characteristics that help define a market, including the availability of an
arena, buyers and sellers, and a commodity that can be purchased and sold. (Webber,
2022)
Supply and Demand

Whatever the context, a market establishes the prices for goods and other services.
These rates are determined by supply and demand. The idea of supply and demand is
one of the very basics of economics. Supply is created by the sellers, while demand is
generated by buyers. To put it simply, the number of goods and services available is
determined by what people want and how eager they are to buy. Sellers
increase production when buyers demand more goods and services. Producers then
increase their prices in order to realize a profit. When buyer demand decreases,
companies have to drop their prices and, therefore, the number of goods and services
they bring to market. (Kenton, 2021)
(Virtual High School, 2019)

What are Goods and Services?

Goods and services are the output of an economic system. Goods are tangible items
sold to customers, while services are tasks performed for the benefit of the
recipients. Examples of goods are automobiles, appliances, and clothing. Examples
of services are legal advice, house cleaning, and consulting services. The output of
a business can lie somewhere between these two concepts. For example, a
landscaping company could sell a homeowner a tree (goods) and also mow the lawn
(a service).
(Bragg, 2022)
(Academic Gain Tutorials, 2021)

What is Supply?

Supply is related to the price of the products, given that there is an incentive to supply at
a higher price, as higher prices produce greater revenue and profits. Companies always
want profit and, therefore, are more likely to manufacture more products at higher
prices. When the price of goods or services is low, the supply is low, and when the price
is high, the supply is also high. Therefore, significant price changes would also affect
the equilibrium in the economic market.(Bennett, 2023)

What is Demand?

Demand is a principle of economics that captures the consumer's desire to buy the
product or service. The demand is calculated as the price the consumers are willing to
pay for the product or service. If we keep all other factors constant, the demand should
go up as the prices go down, and the demand should go down as the prices go up.
(Coleman, 2023)
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https://www.accountingtools.com/articles/goods-and-services

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entrepreneurship/

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https://www.investopedia.com/terms/m/market.asp

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No. 2008/20). WIDER Research Paper.

https://www.econstor.eu/handle/10419/63572

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https://www.investopedia.com/terms/a/applied-economics.asp

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Demand. https://www.youtube.com/watch?v=720uyg0Dd_M
o Webber, M. (2022, January 12). What Is a Market Economy? The Balance.

https://www.thebalancemoney.com/market-economy-characteristics-examples-

pros-cons-3305586