Entrepreneurship And Entrepreneurship

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Is there truly a link between entrepreneurship and economic development? Schumpeter (1934) observed a link between both of these and he also suggested that innovations which are radical can lead to creative destruction, transforming industries for the better as well as improving the quality of life for inhabitants. In this following essay, I am going to be examining an innovation’s contribution to economic development as well as the link between economic development and entrepreneurship.
The innovation whose contribution to economic development I will be examining is the Dyson vacuum cleaner. James Dyson created the Dyson vacuum cleaner to eradicate the problem of his older vacuum cleaner constantly clogging. Instead of using vacuum filters and bags, his innovation consisted of dust being sucked into a cone-shaped section in
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An example of one of these theories which relate to James Dyson is Israel Kirzner’s Modern Austrian approach. This economic theory is based on the opportunities entrepreneurs can react to. Kirzner (1997) explains that there is a large importance around the discovery potential in rivalrous competition where there can still be opportunities for entrepreneurs, especially if disequilibrium exists within the market because entrepreneurs would be able to gain profits from spotting information asymmetries within these established markets. Kirzner (1973) also suggests that entrepreneurs are crucial to economic development because they are able to find opportunities in the uncertainty while lies in cycles of creative destruction. In the case of James Dyson, he pursued opportunities without regard to his lack of money and resources which shows that he was very entrepreneurial and still is today because he is still continuing to innovate and invent new technologies and products (Stevenson,
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