The Entrepreneurial Economy

To know what is entrepreneurial Economy and what are the major outcome can be well
studied with the American’s Economy of two decades 1965 to 1985.In this two decades
there is something different has happen than of the facts and figures that is shift from a
“managerial” to an “entrepreneurial economy” in American’ s economy history.

In this two decades America has created a many new jobs .The development of America
is almost unique if we compare with other big economy like Japan and Western Europe.
There were many jobs created which was not even predicted by the most labor force
before twenty years of these two decades.
Everyone focuses on what were the growth areas after twenty years of World War II, as
everyone tag seventies and eighties periods as “no growth’ and “deindustrializing
America”. In those early years institutions like hospitals, governments, large and super-
large universities were to create jobs in American market. However, job loss and
unemployment has created in small institutions and in small business.
All the new jobs after the loss of old jobs has been created by small and medium and
small sized institutions.
We might assume that this job creation is due to technological breakthrough but high tech
has not contributed more than 5 or 6 million job out of 40 million jobs. High tech creates
vision for entrepreneurship and innovation in the community and the receptivity for them.
Now the big question in the American economy is where all the new jobs came from.
Business like chain of Barbershops, chain of restaurants, women’s wear manufactures has
created the jobs in the economy and the one that has created most jobs is financial
services.
According to the study conducted by two seniors’ partners of Mckinsey & company, the
consulting firm the other source of growth sectors of the U.S economy is mid sized
companies that are having revenues between $ 25 million and $1 billion. Even at the time
of depression these sectors were adding jobs.
Furthermore analyzing the growth sectors of US economy one things very noticeable is
that all these contribution is from the non-governmental enterprise esp in health sectors.

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Similarly, other this that was even more confusing was the rises in private schools when
public sectors were shrinking.
One and the most interesting to know in entrepreneurship is the emerging of the fourth
sectors that is public and private partnerships.
The one thing in common in those entire growth sectors is “new technology”. Here, the
technology does not mean the electronics, or genetics or new materials but it is all about
the application of knowledge to human work that is “entrepreneurial management”.
The advantages of having entrepreneurial economy can be well explained with the case
of Crash in the Viennese stock market which has an impact on the Great Britain, France.
However, the case was different in U.S, Austria and Germany because of only one factor
that is entrepreneur.
Although economists believe that entrepreneur is important and has impact in the
economy but they perceive entrepreneurship as “meta-economic” event that is something
being part of it without being part of it. Economists themselves do not explain why it is
limited to country and cultures. The causes for entrepreneur depend on the changes in
values, perceptions and attitudes which happened to Young Americans which is called
management.
However, until recently management was confined to business. Even hospitals,
universities and small enterprise do not bother about the management. They assume it
was only for big companies and profit making companies.
During the last ten of fifteen years if we see the trend has been changed from
“deindustrializing” to “deinstitutionalizing”. Hospitals, university understood the actual
meaning of management and its importance. Organization like McDonald has well
understood it and added more values in its services.
Hence, management is new technology that is making American economy into
entrepreneurial society. Now whatever we have done foe management that is developing
theories and principles now time has come up to do same with entrepreneurship and
innovation.

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Systematic Entrepreneurship
Who is entrepreneur and what is difference between entrepreneur and entrepreneurship
has been very confusing.
When an husband and wife establish Mexican restaurants catching the increasing the
popularity trend of the eating in American sub-burns areas taking risk without adding any
new values, then this is not entrepreneurs.
Who is entrepreneurship can be well explained with McDonald example as it apply
management concepts and techniques and standardizing the “product “and process and
also making new market and customer.
When we see every new firm have many factors in common but to be entrepreneurial is
to have special characteristics that are they create something new, something different
and they change or transmute values.
But enterprise need not to be new to be entrepreneurial even old enterprise can practiced
entrepreneurship. For this take we can take example of G.E which has also introduce
itself more than manufacture that is G.E credit corporation.
However, the concept of entrepreneur does not confined solely to economic institutions.
These characteristics can be identified with the example of University of Berlin and
modern American University which has gained worldwide leaderships in scholarships
and research. Likewise after World War II there was growth in the academic
entrepreneurs in America. For instance, universities like New York institute of
technology, Golden Gate differ there curriculum than old institutions and designed for
new market.
Other case of entrepreneurship is the case based in health sector. Here entrepreneurs are
busily changing the hospital into specialized treatment centers.
What makes this service institution is something different and something specific.
English speakers identify entrepreneurship with new and small business and German
identifies it as power and property.
Entrepreneurs need capitals to do all economic and non-economic activities. They are not
investors but they take risk for future return. Besides this entrepreneur is self-employee.
Entrepreneurship is behavior rather than the personality trait and its foundation lies in
concept and theory rather than in intuition.

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Entrepreneur rest on the theory of economy and society. Entrepreneurships always search
for change, respond to it and exploit it as opportunity.
Entrepreneurships mainly shift resources from low productivity to higher. Here, there
may be risk but even if they re moderately successful the returns should be more than
adequate. However, they are so many real life examples that that innovate in low risk like
IBM, Procter and Gamble.
Entrepreneurship is risky because so few entrepreneurs know what they are doing. They
lack methodology and violate rules.
Entrepreneurs innovate or innovation is an instrument for entrepreneurs. The
biggest resource in an economy is purchasing power which is the creation of the
innovating entrepreneur.
It is not necessary that innovations need to be technical even it can be social innovations
like incase of health, insurance.
Successful entrepreneur do not wait until something miracle occurs, rather they work.
Whatever their motives may be successful entrepreneurs try to create value and to make a
contribution and still aim high.
Hence, systematic innovation monitors seven sources for innovative opportunity they are
as follows:
 The unexpected.
 The incongruity.
 Innovation based in process need.
 Changes in industry and market structure
Besides this other three factors are Demographics, Changes in perceptions, mood and
meaning and new knowledge.
These all factors are the symptoms visible to the individual and are highly reliable
indicators of changes that have already happened or can be made happen with little effort.

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