Much of the economic literature on entrepreneurship supports the broad benefits of entrepreneurship on economic growth and job creation. However, not all entrepreneurs contribute equally to these economic benefits. The primary driver of good entrepreneurship is innovation and creativity. Bad entrepreneurship arises largely from firms’ inability to apply innovation to the market and convert these innovations in the right places to fit the market. Hence, experience and knowledge is imperative to produce more good entrepreneurs and less bad entrepreneurs who cannot find a fit with gaps in the market. Successful entrepreneurship creates competitive advantage. Countries need more good entrepreneurship to produce economic growth and create jobs (Anderson, 2011). Entrepreneurs can benefit from learning from successful entrepreneurs and gain experience how to convert innovations into successful market applications.
Baumol (1990) showed the success of the Chinese in the eigthteenth century emerged because of creating the right climate for innovation, but the West surpassed the Chinese because of its ability apply the innovations to the market. Combining innovative capabilities with the ability to apply innovations in the market decreases the high failure rate of entrepreneurs (Anderson, 2011).
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Anderson, A. R. (2011). The university’s role in developing Chinese entrepreneurship. Journal of Chinese Entrepreneurship, 3(3), 175-184. doi: 10.1108/1756139111166957
Baumol, W. J. (1990). Entrepreneurship: Productive, unproductive, and destructive. Journal of Political Economy, 98(5), 893-921. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=9103252727&site=bsi-live