In the modern world of globalization & stringent competitiveness, an entrepreneur is defined by a number of definitions based on past empirical analytics & researches - an innovator, owner of an enterprise, coordinator of economic resources, a resource manager, an individual ensuring enhanced image of the economy on a global platter, and so on. However, fundamentally an entrepreneur is the person who has the determination & courage to start and run a business as per the ideas generated by innovations. Entrepreneurs in a country impact the local economy by invoking competition, breaking monopolies, creating jobs, managing social empowerment, practicing Change Agentry, increasing tax revenues, improving existing products & services, etc.
Hence, the entrepreneur ensures overall value added to the economic performance, productivity and internationalization of the nation. An innovative entrepreneur is expected to possess high-risk appetite when starting a venture with the clear understanding of the correlation between risk & uncertainty which can be calculated by applying known probabilities and impacts. Knowing the industry dynamics, the entrepreneurs are expected to take calculated risks into account to bear the uncertainty of production & trade.
The payoff is the profit earned by the entrepreneur which is the primary motive. In this context, the venture capitalist plays the role of trusting the innovation & risk appetite of an entrepreneur and providing funds for transitioning the ideas into action thus helping in the formation of good performing start-ups. A nation having the effective framework of capitalists (Banks, Financial Institutions, Private lenders, etc. ) ensures better development of entrepreneurship thus boosting the economic growth. 2000; Harry P Bowen & Dirk De Clercq. Empirical evidence suggests that Entrepreneurship is very closely linked to Economic Growth.
The globally accepted model of correlation between Entrepreneurship and Economic growth is the one developed by the Global Entrepreneurship Monitor (GEM) presented in the figure below.
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