Drivers of Entrepreneurship: Linking With Economic Growth and Employment Generation (A Panel Data Analysis)

Farhat Rasool, Ahmed Gulzar, Shaheen Naseer

Abstract


The need for entrepreneurs for economic development has always
been crucial in history because they are the leaders who invent
innovative ideas that give spark to economic activities. They are
responsible for the combination of factors of production by capital
formation, creating employment opportunities, wealth distribution that
facilitates development and growth. A well explained definition of
entrepreneurship in the words of Wennekers and Thurik (1999) that
successfully makes the functional roles of entrepreneurs is: “…the
manifest ability and willingness of individuals, on their own, in teams
within and outside existing organisations, to perceive and create new
economic opportunities (new products, new production methods, new
organisational schemes and new product-market combinations) and to
introduce their ideas in the market, in the face of uncertainty and
other obstacles, by making decisions on location, form and the use of
resources and institutions.” (46–47) High and sustained economic growth
is the fundamental objective of every developed or developing country’s
governmental policy. Economic growth is a long term expansion of the
productive potential of the economy. It generates employment in the
economy and raises the living standards of the nation. Economic growth
promotes business activities in private sector, increases company
profits and enhances investor confidence.

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DOI: https://doi.org/10.30541/v51i4IIpp.587-606

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