Explaining and Understanding the Economics of Entrepreneurship and Innovation in the Twenty-First Century Globalized World

Abstract

Entrepreneurship is a field of study in economics and management. From an economic perspective, entrepreneurship is an exception to the traditional input-output model. The entrepreneur is frequently a proactive "change agent" in a social and managerial framework. The entrepreneur intentionally use creativity and innovation as instruments to accomplish enterprise. The definition and significance of entrepreneurship, the terms "entrepreneur" and "entrepreneurship," the traits of an entrepreneur, and the variables influencing entrepreneurship are all covered in this paper. This paper presents the economic and scholarly context of entrepreneurship, which is an economic theory and practice that lies beyond the boundaries of traditional input-output economics. The core idea of neo-classical economics, which emerged at the start of the twentieth century, is market equilibrium, which is the state in which supply and demand in a perfectly competitive market are equal. This paper stresses that innovative businesspeople have limited place in this plan, and it is instructive to note that communist theorists denigrated entrepreneurs as nothing more than "background noise" in the grand historical imperative. For a large portion of the twentieth century, the prevailing theory was the advantages of economies of scale, or the dominance of the large corporation.