It is hard to disagree that there is a number of factors that have an impact on the development of global and local economies. For instance, two such aspects are entrepreneurship and innovation, and it is possible to consider them the primary moving forces of employment and poverty reduction. While it may not be evident to everyone, entrepreneurship and innovation are an integral part of today’s society, and since these two concepts are closely connected, they play a vital role in the development of the current economy.
To begin with, it is essential to discuss entrepreneurship, especially the international one. Overall, the state of the global economy would be much worse if not for the IE. According to Jie and Harms (2017), “around 20% of the young enterprises in Europe are born global,” and “these new startups contributed significantly to job creation and welfare in Europe” (p. 1). Researchers use the theory of planned behavior (TPB) to explain and predict entrepreneurial intention and behavior (Jie & Harms, 2017). Interestingly, this theory allowed to discover the need to develop cross-cultural competence in order to prepare students better for the challenges posed by entrepreneurship (Sabah, 2016). Further, as mentioned above, there is a strong connection between entrepreneurship and innovation. Therefore, as stated by Sabah (2017), “entrepreneurial behaviour acts as an important and locomotive force of innovation within an economy” (p. 89). Without innovation, it would be impossible to move the economy further and hope for its development.
Currently, researchers are focused on the study of the effects of these two concepts on the rehabilitation of the global economy after COVID-19. Therefore, academics believe innovation supports new ways of working (Si et al., 2021). The latter is vital for the post-CODID community, and precisely entrepreneurship plays a crucial role in this process (“The Role of Entrepreneurship and Innovation During and After the Coronavirus (COVID-19) Crisis,” 2020). During these times of increased unemployment and a higher number of low-income people, the two economic aspects allow for the creation of new jobs and finding more effective ways of fighting poverty.
References
Jie, S., & Harms, R. (2017). Cross-cultural competences and international entrepreneurial intention: A study on entrepreneurship education. Education Research International, 2017, 1-12. Web.
The role of entrepreneurship and innovation during and after the Coronavirus (COVID-19) crisis. (2020). The International Journal of Entrepreneurship and Innovation, 21(3), 206–207. Web.
Sabah, S. (2016). Entrepreneurial intention: Theory of planned behaviour and the moderation effect of start-up experience. In Entrepreneurship – practice-oriented perspectives (pp. 87-101). Books on Demand.
Si, S., Ahlstrom, D., Wei, J., & Cullen, J. (2021). Introduction: Business, entrepreneurship and innovation toward poverty reduction. In Business, entrepreneurship and innovation toward poverty reduction (pp. 1-20). Routledge.