Entrepreneurship and Economics (Essay Sample)

Entrepreneurship and Economics
Course
Date
Institution
Definition of Entrepreneurship
Economists explain entrepreneurship as the process of identifying worthwhile business opportunities, and implementing them with the purpose of yielding profitable returns. The process of entrepreneurship further engages entrepreneurs into the identification of vital resources. Mainly, the resources entail, labor and capital. Further, entrepreneurship requires the businesspersons to identify the premises upon which they target to establish their ventures. Lastly, entrepreneurship entails the identification of target environment and adequate managerial practices to ensure that the business produces the required output to meet the present demand (Bell-Masterson, 2013). Its economic contributions have been witnessed recently in technological advancements, which include the Google, Facebook, and Apple business entities (Tesreau & Gielazauskas, 2012). The businesses exist as either risk taking, innovative, or entrepreneurial performances which eventually affect economic performances.
Explanation of entrepreneurship contributions to the economy
According to Jordan Zachary Bell-Masterson, entrepreneurship contributions have continuously led to economic growth in the United States of America just like it is the case with other capitalists’ nations. The Kauffman-funded Census report revealed America’s economic has been dependant on entrepreneurial projects. Arguably, the entities contribute to 70% of the gross domestic product (GDP), through the provision of employment. Therefore, entrepreneurship contributes positively to economic growth as the businesses started through personal innovations eventually extend to affect the country’s gross national product (GNP), its per capita income, and foreign competences. Entrepreneurship affects the economy depending on the practices of nationalization, expropriation, confiscation, and democratization. The essence is that each of the above practices either reduces or increases the entrepreneurs’ ability to engage actively in their businesses and in turn yield their expected profit margins (Tesreau & Gielazauskas, 2012). These returns on investments are used in reinvestment plans, expansion of the production line to increase the output, and in the employment of extra staff to meet the obligations. The Economist Newspaper Limited 2014 ( HYPERLINK "/node/13216037" /node/13216037...