Abstract:
As emphasised by “Innovation theory of Economic Development” given by one of the greatest economists of the first half of the twentieth century Joseph Alois Schumpeter that “the occurrence of discontinuous and "revolutionary" change to be the fundamental component of "economic development." He believed that this enables the economy to break static mode of "circular flow" and places it on a dynamic path of fits and starts” (Sledzik 2013). Thus, this becomes a persisting assertion that entrepreneurship and innovation are crucial component in today’s dynamic and ever-changing world to achieve progress in business and industry at regional and national level as well (Bergmann 2011). It is also often held that the presence of entrepreneurship and new business creation has altered the public's view of economic progress as a result of the sharp increases in unemployment seen in certain nations. (Thierstein and Wilhelm 2001). Thus, it can be said that, as countries in the developing world rapidly expand into global economic powers, entrepreneurialism will be the driving force behind their economic progress. Considering the dynamic and ever-changing nature of today's economy, the value of becoming an entrepreneur has only increased in recent years. (Audretsch et.al. 2015). Entrepreneurship boosts both the size and competitiveness of current markets because of its emphasis on developing new goods and methods. This is beneficial for both buyers and sellers (Rocha 2004). The creation of new businesses also encourages investment from multinational corporations and venture capital firms, that contributes significantly to their Gross Fixed Capital. The good results have even prompted policymakers in many parts of the world to prioritise establishing enabling environments for new business start-ups. This is consistent with (Harrison et.al.2004) argument that numerous policy initiatives have been launched to expand capital access for start-ups. More specifically, governments have attempted to lessen the financial limitations encountered by entrepreneurial businesses by bolstering the availability of conventional bank loans with
tools like Mutual Credit Guarantee1 and microfinance programmes2. The percentage of new and early-stage entrepreneurs engaged in the creation of new business ventures in a nation (Entrepreneurial activity rate), has remained low to modest across nations and states despite taken numerous commendable initiatives and growing attention and efforts from national and worldwide policymakers. Over the past several decades, a substantial body of entrepreneurship literature has concentrated on elucidating the variables that drive the establishment of new business ventures. (Shapero and Sokol 1992) has drawn a positive distinction between positive factors that 'Pull' and negative factors that 'Push' people into entrepreneurship, where need for accomplishment, independence, and social growth are 'pull' incentives on the other hand 'Push' motives include unemployment, familial pressure, and general unhappiness (Zwan et.al. 2016).
