Article Review

Entrepreneurs and their impact on jobs and economic growth

By Alexander S. Kritikos (2014).

1.0 INTRODUCTION

Alexander S. Kritikos wrote this article in 2014 about how entrepreneurs contribute to
job creation and economic expansion. The competitiveness of the economy depends on
entrepreneurs, but only if the business environment is open to innovation. Governments
must reduce bureaucracy, simplify rules, and get ready for the negative repercussions
of layoffs at incumbent businesses that fail due to new competition if they want to foster
entrepreneurship and economic progress. When faced with significant regulatory
barriers, entrepreneurs either relocate to nations that encourage innovation or switch
from wealth-generating to non-wealth-generating industries.

2.0 LITERATURE REVIEW

According to the author, entrepreneurs frequently generate new technology, goods or

processes, and markets. Examples include Bill Gates, Steve Jobs, Stelios Haji-Ioannou,
Dietmar Hopp and Hasso, Larry Page and Sergey Brin, Pierre Omidyar, Larry Ellison,
and Dietmar Hopp. Compared to established businesses, entrepreneurs spend more
money looking for new prospects, and radical breakthroughs usually spur economic
expansion. Incumbent firms frequently lose out on opportunities to adopt new ideas due
to organizational stagnation or a fear of cannibalizing their own markets. For innovators
and inventors, starting a business is frequently the only option to make their ideas
profitable.

In addition, it was said that business owners heighten competition. By encouraging

older companies to perform better, new business development indirectly increases
competition. On the other side, a positive rivalry encourages you to make the most of
your available resources.

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3.0 THE METHODS AND RESEARCH DESIGN

Entrepreneurs, then, have favorable employment benefits in the short and long terms,
but negative effects in the middle term, according to him. By adding jobs, entrepreneurs
encourage employment growth, which eventually produces an S-shaped effect.
Entrepreneurs invest substantially more money in the search for fresh prospects than
do businesses that are already established. Radical ideas typically lead to economic
growth. Incumbent businesses frequently lose out on opportunities to adopt new
concepts because of organizational stagnation or a concern about eating into their own
markets.

Finally, it was brought up to him that new business will increase productivity.
Entrepreneurs who have already found success frequently offer advice and support to
those who are just starting out. Additionally, they give generously to local charities and
community organizations. This promotes growth outside the bounds of their respective
activities.

4.0 CONCLUSION

Alexander came to the conclusion that entrepreneurship is crucial for a thriving

economy because it fosters a culture of second chances for business owners,
generates employment opportunities, and affects economic performance. Institutions
must make sure that these benefits go to business owners, including safeguarding
intellectual and other property rights, simplifying and enforcing commercial laws,
enhancing the business climate, lowering regulatory burdens, and promoting a
supportive entrepreneurial environment.

Although some highly innovative entrepreneurs build rapidly expanding enterprises that
have a significant impact on economic growth, replicative entrepreneurs have a less
likely impact, hence it is still unclear how entrepreneurs and economic growth rates are
related. The kind of economic climate that affects creative entrepreneurs, failure rates,
and the linear relationship between failure/closure and years of stagnation are also little
understood.

(536 words)

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REFERENCES

Engle, R.L., Dimitriadi, N., Gavidia, J.V., Schlaegel, C., Delanoe, S., Alvarado, I., He, X.,
Buame, S. and Wolff, B. (2010) ‘Entrepreneurial intent: a twelve-country evaluation of
Ajzen’s model of planned behaviour’, International Journal of Entrepreneurial Behaviour
and Research, Vol. 16, No. 1, pp.35–57

Fukuda, K. (2014) ‘An empirical study on entrepreneurial intentions among Japanese

university students’, International Journal of Entrepreneurship and Small Business, Vol.
21, No. 2, pp.216–230.

Kelley, D.J., Singer, S. and Herrington, M. (2012) Global Entrepreneurship Monitor 2011
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report