Running head: ENTREPRENEURSHIPS AND GLOBAL ECONOMY

Entrepreneurships and Global Economy: Literature Review

Andrea Aguilar
University of Texas at El Paso

ENTREPRENEURSHIPS AND GLOBAL ECONOMY

Abstract
Entrepreneurs are individuals willing to take risks in a place where there is a slight chance of
gaining or achieving benefit to start a business for opportunities. The topic of Entrepreneurships
and how they affect global economy focuses on society in a broad way and how countries
interact with one another and the outcomes or aftereffects on economy to gain that benefit. Four
general questions discussed through an observation and thorough research give feedback on
competition, incorporation, and opportunity patterns like production development when it comes
to transportation and connection within each entrepreneur and firms in each country. When
dealing globally, generally entrepreneurs tend to influence development in a positive way and are
viewed as an innovation rather than an issue. In order to make development even higher
government, values, and competition are needed throughout the process. When dealing with
general population economy influence, the number of jobs generated within a five-year rate or
percentage results can be shown through the comparison of high, moderate, and low growth
entrepreneur. Economy tends to become stable when those risky individuals called entrepreneurs
start by making business with uncertain results and later revolutionize their firm strategies
making globe economic growth.
Keywords: Entrepreneurs, Globally, Development, Growth Rates

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Global economy is affected majorly by what approach entrepreneurs use and how
they approach their goal. Issues and controversies such as rates, education, ethics, society,
knowledge, skills, and management provide factors of how and why economy and entrepreneurs
are intertwined when affecting globally. Factors that mostly affect global economy revolve on
how modernization impacts and generates jobs or causes many to loose them and as a result
constantly changing economy.
Entrepreneurships have a major impact on social economy advance and growth. While in
the journey of entrepreneurs making their business successful and stable, many obstacles and
challenges are encountered. Starting with communication since it is an important factor
throughout business as certain products and regulations may be disturbed. When in the process of
making a product in each country is managed and refined differently. In one country the
development of a new product could mean the initiation or prolongation of technologies and
diffusion, while in another country it could mean the complete opposite such as the deterioration
of a majestic century. This happens when global economy gets involved with entrepreneurships.
Based on the growth or decline is how one country affects another with the transactions of their
business. Questions shown below need to be contemplated in order to have a better perspective:
1.
2.
3.
4.

How does entrepreneurship affect global economy?

Who views this as an issue? Why? Why not?
What can be done to improve entrepreneurs influence on development?
How do firms and growth rates affect general population?

How does entrepreneurship affect global economy?

As briefly discussed before entrepreneurship not only affects global economy but can
also affect many aspects revolving around economy such as politics. Key words are innovation
and disruption. It includes the introduction of new goods, new methods of production, new

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markets, new sources of supply for materials, and new ways of organization. (Summers, 2010).
As for disruption, it doesnt always have to contribute towards poor or atrocious outcomes; it can
go through immediate growing efficiency with products and businesses. For example, there are
innovations such as building railroads that disrupted societies but in some way improved them by
making transportation easier and faster. We can see the beneficial impacts of disruption when we
see then from a distance (Abello, 2012).
Three main points of entrepreneurship affecting global economy are competition,
incorporation, and opportunity followed by freedom. Competition is always important since
marketing has become a huge open window when dealing globally always trying to find new
methods, cures, products that will make our life easier and keep the world developing.
Competition brings out challenge facing in the direction of entrepreneurship when in competition
therefore taking those steps to make that change accomplished for. An example of competition
can be how we think of Wal-Mart and it is an enormous retailer but compare that with eBay and
its online marketplace of 85 million active buyers and sellers (Summers, 2010). After
competition phase is over, incorporation of that same competition is brought to the idea or
business in mind facing with a common factor like modernization. Entrepreneurs tend to open
opportunities or impact globally majorly through diversity of new ideas products with
technology. Companies developing through Internet and making profit distribute economic
power as they interact with one another. With such innovations the generation of more jobs
always follow because of new technologies and different not used before connections evolve.
Freedom is applied to the fact that to develop and do the unthinkable changes peoples lives
throughout the globe not just in a city or town. Some of the greatest entrepreneurs in our country,

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people like Bill Gates and Steve Jobs, they dropped out of college (Summers, 2010). It all starts
with big ideas and desire to make a change and as a result exchanging this advance with profit.

Who views this as an issue? Why? Why not?

Entrepreneurship affecting global economy can be seen as a beneficial progress
throughout time even though there are factors that involve negative outcomes most of the times
changes come to be of greater benefit for the future. Governments have increasingly recognized
the contribution that social entrepreneurship can make to reducing poverty and empowering
disadvantaged groups (Istanbul, 2004). Evolving ways that make the world grow are related to
employment, less homeless people, and productivity. These are factors that make
entrepreneurship and global economy a benefit and not an issue for many viewing the same
productivity but in a different perspective. Without change and risks taken day by day with
compromises losses and increase on income by entrepreneurs, productivity would not be present.
Though since each country is run differently even if they relate to one another, several
actions can be viewed as an issue but not entrepreneurship itself. A very important factor that
contributes to disputes of whether entrepreneurship is an issue or not is the way business needs to
be handled and carried out is how characterizations include personal traits, cultural, and
institutional factors (Ekmekiolu, 2011) when dealing with economic growth is rarely taken
into consideration or put in hold and be looked at last. Small firms who view this as an issue base
this on larger firms having been found to mimic smaller firms in terms of business unit, joint ventures
and subsidiaries in order to introduced entrepreneurship or corporate entrepreneurship
(Ekmekiolu, 2011). Because of imitation taking place between companies and using it
as their own idea several see entrepreneurial relations as an issue since when dealing globally

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there is not really much a company can do to prevent this. When dealing internationally a lot of
laws and regulations not only from a self-country are involved but the countrys regulations you
are planning to evolve in are also included. When dealing with a major audience, or completely
public to target, major consequences and universal views are incorporated making the weaker
view any type of differentially as an issue.

What can be done to improve entrepreneurs influence on development?

To directly deal with the matter of influence contributing to development of progression
the first thing that needs to be employed is transparent governance, a diverse membership base, a
relentless focus on values among our people, and efficient processes which drive our constituents
towards solutions (Schwab, 2015). Without clarity of how business is being handled, and what
attributions are involved societies would not budge towards change since what is greatly needed
in order to achieve influence is societies integration. Without motivation for those commercials,
posters, influential papers, voice on voice marketing involvement there would be need for
advancement. The worlds best businesses join to participate along with leaders from
government and the non-business world. Projects such as Grow Africa, unlocked $10 billion of
investment for smallholder farming in Africa, or our work in Internet governance and climate
change (Schwab, 2015). A great example of how leading and striking towards a great amount of
potential lies ahead.
Economy influence with entrepreneurs also takes place because of factors like the amount
of changes and the aspect used in the value of economic activities also involving movement and
labor. One example would be capita incomes, which means income per person. This involves
countries with low levels of economic development typically have a large agricultural sector,

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which provides subsistence for the majority of population who mostly still live in the countryside
(Bosama, Levie, 2010). Resulting in characters such as competitiveness of natural resources
starting to make evolution over time in this scenario demonstrating one of the many factors
already taken into account and proceeding into action for development. If effective process of
influence factors such as increasing economic productivity contributes to financial capital
formation, niches may open in industrial supply chains that service these national incumbents
(Bosama, Levie, 2010) convenience for manufacturing sector opportunities would open.
How do firms and growth rates affect general population?

Low

Low; 3

Low; 2%

Low; 300%

Moderate
Moderate; 2
Moderate; 10%

Moderate; 200%

High
High; 1
High; 100%
High; 20%

There are distinctive types of rates involved when in a business such as: high, moderate, and low
growth rates. Entrepreneurs that have high growth rates tend to make a change and create more
job opportunities than any individual. As said by Morris studies, high-growth entrepreneurs own
firms that have experienced estimated revenue growth of 20% or more per year; moderateGrowth Entrepreneurs own firms with estimated revenue growth rates of between 5-20% per

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year; and low-growth entrepreneurs own firms that have grown at an estimated annual rate of
less than 5% (Morris, 2011). Generating more jobs from a high growth entrepreneur firm rather
than on a low growth rate entrepreneur firm.
Results shown like the ones above are due to the fact that entrepreneurs in the high rate
usually start their companies when they are young and are more likely to have completed their
education in college. Entrepreneurs in the high section are involved in partnerships, seek
challenge, and deal internationally in greater amount, which demonstrate reasons why they tend
to be more successful. Entrepreneurs in moderate rates aspire and resemble high growth
entrepreneurs with the exception of a great number of them are not involved in partnerships and
didnt start with the intentions or aspiration of wealth as a high growth entrepreneur. Moderate
growth entrepreneurs are also known to not have entrepreneur acquaintances that recently started
a business and will mostly fund to family instead of business associates. In the other hand, low
growth entrepreneurs have a complete different view or approach in things. For the most part
very few, if any are involved in partnerships, and deal with a very small number of international
customers. The greater reason why they are in the low rank is because the motive for starting a
business was due to necessity and not because of desire or any goals in mind and tend to have a
lower education than other entrepreneurs.
In conclusion, entrepreneurship greatly influences evolution throughout the world
overall. It covers a great amount of patches dealing with society, influences, evolvement,
interaction, education, values, government, and modernization. Without new ideas there
would be no production and without production and creativity there would be no
consumption and without consumption there is no profit for business. Arguments like
education and management are the first contributors that should be taken into consideration

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when approaching global economy. A great deal of knowledge of how to deal with a business
and who to interact with and how manage it is needed when interaction with various
international regulations, views, and religion.
References
Abello, O. (2012, June 11). How entrepreneurs are transforming the global economy.
Retrieved March 6, 2015, from http://www.fastcoexist.com/1679996/how-entrepreneursare-transforming-the-global-economy
Bosma, N., & Levie, J. (2010, January 1). Global entrepreneurship monitor 2009 executive
report. Retrieved March 6, 2015, from http://dspace.library.uu.nl/handle/1874/209570
Ekmekiolu, E. (n.d.). The impact of entrepreneurship on economic growth. Retrieved March
10, 2015, from
http://www.academia.edu/1600957/The_Impact_of_Entrepreneurship_on_Economic_Gro
wth
Istanbul, T. (2004, June 1). Promoting entrepreneurship and innovative SMEs in a global
economy. Retrieved March 11, 2015, from http://www.oecd.org/cfe/smes/31919590.pdf
Morris, R. (2011, January 1). 2011 High-impact entrepreneurship global report. Retrieved March
10, 2015, from
http://www.gemconsortium.org/assets/uploads/1317315588GEM_Endeavor_2011_High_
Impact_Report.pdf
Schwab, K. (2015, March 18). The transformation of the world economic forum. Retrieved
March 12, 2015, from https://agenda.weforum.org/2015/03/the-transformation-of-theworld-economic-forum/
Summers, L. (2010, April 27). Entrepreneurship and the global economy. Retrieved March 6,
2015, from
http://www.whitehouse.gov/administration/eop/nec/speeches/entrepreneurship-globaleconomy

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