ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Entrepreneurs provide jobs and innovation to an economy, which increases GDP.
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The risks that entrepreneurs take are almost always harmful to the economy, which decreases GDP.
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Either A or B
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None of the above
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Detailed explanation-1: -Across economies, GDP growth increases with the early-stage entrepreneurship activity rate. 1 There are at least 2, 000 respondents per economy in GEM data based on the adult population. To ensure comparability, the survey used the same basic questions across economies.
Detailed explanation-2: -Innovation plays a central role in the economic growth process and the entrepreneur is the vehicle to introduce the new technologies to improve the firms’ activity and to obtain higher profits. It is also necessary to include in this process other variables: social climate and the role of institutions.
Detailed explanation-3: -Entrepreneurs can commercialize their innovative new products and so dynamize the economy. In order to maintain long-run economic growth, the companies in the economy need to have motivation for product and process innovation and for entrepreneurial activities.
Detailed explanation-4: -Answer: The entrepreneurs contribute a great deal to the GDP. Entrepreneurship is concerned with the production of goods and services in the economy. Thus, it directly affects employment, revenue generation, and foreign exchange. Therefore, it affects the whole economy in general.