CONTRIBUTION ON ENTREPRENEURSHIP IN ECONOMIC GROWTH

Muhammad Amjad Nazir

(MBA) Buiseness Reserch Method
Professor Dr. Muhammad Ramzan
Superior University Lahore
Abstract
This paper explains the contribution of entrepreneurship in economic growth.
Entrepreneurial
activities generally presume an important aspect of the organizations. The 1980s
and 1990s have
seen reevaluation of small firms and renewed attention for entrepreneurship. This
paper is
combination of different strands of literature to link entrepreneurship to economic
development.
During the analyses we use elements from different fields like, historic views of
entrepreneurship, growth theories and history of growth. Other main objective of
paper is to
interpret a critical review of recent empirical researches or approaches on the
relationship
between entrepreneurship and economic growth. And at the end paper concludes
that policy
implication suggest that a case for government support exists, and that should
focus on the
quality, quantity and the allocation of entrepreneurial activity. So this paper find out
that
entrepreneurship play an impotent role in countries in different steps of economic
development.

Keywords: Entrepreneurship, Economic development, Entrepreneurial ability.

Introduction
There are many factors that influence the growth of economic progress. These
factors are
climate, education, property rights, saving propensity, presence of seaports, etc.
The empirical
growth literature has find that a large number of economic and non-economic
variables that may
influence economic development (Sala-i-Martin, 1997 and Bleaney and Nishiyama,
2002). Not
all economists suggest that the entrepreneur a main role to explain economic
development.
However, some suggest that the entrepreneur as one of the main characters. For
example
(Holcombe 1998) finds that, the engine of economic growth is entrepreneurship.
Entrepreneurship is at the heart of national advantage (Porter, 1990). Relating the
role of
entrepreneurship in stimulating economic growth, many links have been explained.
The
objective of this paper is to provide a critical overview of recent empirical research
on the
relationship between entrepreneurship and economic growth. There are many ways
in which
entrepreneurship may impact on economic growth. Entrepreneurs may produce
important
creation by entering markets with new items or production processes (Acs and
Audretsch, 1990).
There have been efforts to empirically explain the role of entrepreneurship in
economic
performance, especially at the firm, region or industry level (Audretsch, 1995;
Audretsch and
Fritsch, 2002; and Caves, 1998).

An important point in our discussion is to consider whether entrepreneurial activity

plays
a similar growth-stimulating role in highly developed economies and in developing
countries. In
this paper we analyze whether Total Entrepreneurial Activity (TEA) influences GDP
growth. We
will test this influence rely upon the level of economic development analyze as GDP
per capita.
With this test we purpose to investigate to what extent the role of entrepreneurship
has change