Updated: Jan 3
Entrepreneurs are a rare species. Even in innovation-driven economies, only 1–2% of the workforce starts a business in any given year. Yet entrepreneurs, particularly innovative entrepreneurs, are vital to the competitiveness of the economy.
The gains of entrepreneurship are only realized, however, if the business environment is receptive to innovation. In addition, policymakers need to prepare for the potential job losses that can occur in the medium term through “creative destruction” as entrepreneurs strive for increased productivity.
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Economies rely on constant improvement and fierce competition – they do not grow without innovation, especially transformative or “disruptive” innovation. And these types of innovations depend heavily on the contributions of entrepreneurs.
A large and growing body of evidence supports this understanding. Entrepreneurs play a disproportionate role in the commercialization of new products, and essentially all of the most transformative innovations have been brought to the fore by entrepreneurs.