Entrepreneurship and Economic Development

Abstract

Entrepreneurship and Economic Development Introduction. An economic indicator can give an overall picture of the production, income and exchange of resources. The state practices to report the economic performance of the country is not able to depict the real picture of the overall situation of the society. Economic growth has been globally accepted to compare the status of development, but regardless of the high rate of economic growth, poverty still exists at a significant level. There are conflicting views about what actually shows real economic development. The entire results of the innovative efforts are generally attributed with the achievements of the government of the states. Although the role of the government in making innovative outcomes for the benefit of the public cannot be overlooked, it is not sufficient to merely look into the effort of the government. There are different people or communities playing roles in the development. Social entrepreneurs are self-motivated, skilled and expert people who work to bring changes to make life better for everybody in the society. They are not motivated by profit at the start; but will be rewarded with the entrepreneurial profit if their innovation is successful. Review of economic history reveals interpretation of the economic development is significantly influenced by the philosophy adopted by the state to govern. In this essay, along with the analysis of the relation between social entrepreneurship and development, core values of political theories and its relation with social entrepreneurship have been discussed. To emphasize the role of entrepreneurship in making life better as well as by facilitating the people and communities of underdeveloped geographical locations, a few cases of social entrepreneurship from Nepal are highlighted. Important findings include that social entrepreneurs are spontaneous but the state can play a encouraging role. Importantly, development cannot be found in the weight of economic indicators alone but shall be seen as the total situation of the society. The study of economic development needs knowledge of political philosophy and political economy as well as a focus on organizing societies for the production of wealth, eradication of poverty and the arrangement of society to make it a just social order [9]. The state of economic development has to be seen not simply from the viewpoint of emerging or preceding economic conditions but from the total situation of the society, which is preceding or emerging. It is not possible to explain economic change only with the help of economic condition alone [24]. The method of calculating GDP as developed by John Maynard Keynes was a product of the Second World War. This method was initially developed by Simon Kuznets to estimate the national income of the US in 1932 to analyze fully the Great Depression. Later, in 1940, Keynes refined it by rejecting the government's income as a part of GDP as defined by Kuznet. Keynes defines GDP as private consumption, investment, and government spend...

Role of political economy in mediating innovation and entrepreneurship–a perspective based on some cases from Nepal

“…Innovation being an independent scientific behavior of social entrepreneurs is continued even in a situation of not-friendly environment of political economy. However, where political economy is conducive enough to promote such independent scientific behavior the pace of development of the society is faster (Nepal, 2020).…”