Entrepreneurship and Growth - Essay Example

Increases in input and advanced technological changes are the economy’s growth strategy hence the main focus of economists. Therefore, in entrepreneurship, the best innovation becomes useful when the innovation is commercially viable. Economic growth, however, depends on the implementation of macroeconomic policies. Economic growth includes practical fiscal and monetary policies that ensure inflation is relatively low and steady. A successful entrepreneurial economy is determined by the level of economic growth.

When there is the minimal bureaucracy of time and capital, rewarding of useful entrepreneurial activities, and retaining or increasing the economy pie by the government then starting a business becomes relatively easy. In addition, culture, level of education and, democracy plays a role in the growth of an entrepreneurial economy. Therefore, the economic growth of any country depends on how easy the market is to allow the establishment of a new business. The supremacy of a countries economy over another is always likely to change.

A strong entrepreneurial economy is never a guarantee for any country to retain the level of economic growth. A country faces several challenges in terms of maintaining the economy. For instance, the biggest challenge to the superpower countries like the United State is to maintain or increase the county’s economic productivity level. Therefore, maintaining entrepreneurial capitalism and running of larger firms is the key approach to ensure growth in the economy of a country thereby avoiding economic drawdown.