HOW DOES ENTREPRENEURSHIP IMPACT ON ECONOMIC DEVELOPMENT?

Abstract

It is often acknowledged that entrepreneurship is a major factor in economic growth and has a significant impact on how countries and communities evolve. Its importance stems from a myriad of factors that contribute to fostering innovation, creating jobs, generating wealth, and promoting sustainable growth. Innovation, job creation, wealth creation, regional growth, productivity increase, market competition, FDI attractiveness, and cultural and social advancement are all facilitated by entrepreneurship, which is a major force behind economic development. Around the world, entrepreneurship is a dynamic force driving economic progress. It embodies the spirit of innovation, risk-taking, and resource mobilization, driving economies forward through the creation of new businesses, products, and services. As economies evolve in an increasingly interconnected world, the role of entrepreneurship becomes ever more prominent in shaping growth trajectories, job creation, wealth distribution, and societal progress. Policymakers, corporate executives, and other stakeholders may create plans to support entrepreneurial ecosystems, lower entry barriers, and create an atmosphere that encourages innovation and expansion by acknowledging the significant influence of entrepreneurship on economic development. Embracing entrepreneurship as a cornerstone of economic policy enables nations to unlock their full potential, creating pathways to prosperity for present and future generations. The objective of this review study was to determine the impact of entrepreneurship on the economic development. To achieve the intended objectives, research and review articles were searched on the major databases including Scopus, Web of Science and ERIC by defining the inclusion and exclusion criteria. The inclusion criteria were to find the articles having the title impact of entrepreneurship on the economic development. Initially, 39 articles were found related to the topic. The duplicate records were also removed and after removing the duplicate articles, 30 articles remained. The articles based on abstract review, not relevant and not in English were also removed. After removing these articles, 22 articles were remained. The exclusion criteria were also set and only the articles were included that have full text access. So, finally 10 articles were finalized and included in the study. The articles finalized reviewed and the results of the study indicated that entrepreneurship has a positive effect of the economic development of a country.