ENTREPRENUERSHIP DEVELOPMENT BACKGROUND

Topics: Economic growth, Entrepreneurship, Economic development Pages: 4 (660 words) Published: February 18, 2014
ENTREPRENEURSHIP DEVELOPMENT BACKGROUND
A worldwide consensus on the critical role of
competitive markets and entrepreneurs in
economic development has emerged in the last
decade. In developing countries, the primary
barrier to economic growth is often not so
much a scarcity of capital, labour or land as it
is a scarcity of both the dynamic entrepreneurs
that can bring these together and the markets
and mechanisms that can facilitate them in this
task.
Concept
Entrepreneurship can be defined as the
process of using private initiative to transform
a business concept into a new venture or to
grow and diversify an existing venture or
enterprise with high growth potential.
Entrepreneurs identify an innovation to seize
an opportunity, mobilize money and
management skills, and take calculated risks to
open markets for new products, processes and
services.
Entrepreneurship development (ED) refers
to the process of enhancing entrepreneurial
skills and knowledge through structured
training and institution-building programmes.
ED aims to enlarge the base of entrepreneurs in
order to hasten the pace at which new ventures
are created. This accelerates employment
generation and economic development.
Entrepreneurship development focuses on the
individual who wishes to start or expand a
business. Small and medium enterprise (SME)
development, on the other hand, focuses on
developing the enterprise, whether or not it
employs or is led by individuals who can be
considered entrepreneurial. Furthermore,
entrepreneurship development concentrates
more on growth potential and innovation than
SME development does. However, many of the
lessons learned from experiences in both types
of development are similar.
Lessons Learned
1. Begin with a clear understanding of the
feasibility and objectives of the
programme, focusing on the development
of ventures with the potential for rapid
growth.
There is a pervasive tendency to equate...
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