Growth

Entrepreneurship and growth

Entrepreneurship is important for economic growth. According to Audretcsh and Thurik (2004) there are three channels through which entrepreneurship may positively affect economic growth: increasing innovation and knowledge spill-overs, increasing competition, and increasing diversity in sectors and firms.

Entrepreneurship may take place at various kinds of firms. One important group is the group of new innovative firms. These are new and independent firms that base their business on the development, commercialisation or manufacturing of technology. These firms with new ideas may disrupt current situation as follows:

1. Large firm ignores exploring alternatives outside of its regime

2. Large firm ignores a new emergent technology/idea of  a new firm

3. New technology/idea grows to maturity in niche

4. New technology/idea improves on the qualities valued in the main market

5. Parity is achieved in areas valued by main market and new technology/idea becomes dominant

 

Here, on these few pages you find various kinds of information on Small Business Center's projects on new innovative firms. Firms are embedded in the national system of entrepreneurship. Therefore this systemic view is considered as well.

Page content by: olavi.nieminen [at] aalto [dot] fi (Pienyrityskeskus) | Last updated: 11.06.2015.