Linking Entrepreneurship and
Economic Growth
BY
SUZANNE ORCHARD, GRANT NAYSMITH,
DAVID BRUNELLO AND ABDEL BELROUL.
Background
 Economic landscape in the post war economy
 The impact of neo-liberal economics
 Explores the links at individual and the micro level
 Small firms are serving as agents of change
 The current economy heavily relies on these small
firms
How Entrepreneurship links to
Economic Growth
Entrepreneurship, Economic Growth and What
Links Them Together?
Entrepreneurship: ‘New Start’ vs ‘Newness’
Economic Growth: Old neo classical theory vs New
endogenous theory
3 levels of analysis:
 Individual Entrepreneur (on their own/small teams)
 The Firm Level (Individual Businesses )
 Macro Level (Industry, Regional and National Economy )
Key = link the individual to the firm and macro level
Entrepreneurship within small and big business
Entrepreneurship not only has different roles but
also takes place in different environments:
Small Business
Big Business
• Lack of wealth, power and
stature drives innovation.
• More passion in the product
and service.
• Less barriers blocking
creativity and innovation
(more opportunity) allowing
more ideas to be put into
action.
• Increase in competition
through the “new entry” that
they are producing.
• Already being established
leads them to try and block
competition through merging
with firms.
• They use a neo-classical
approach which can be too
mathematical and allows for
little innovation.
• Can be far too logical leading
to ideas not being put into
practice as they can be seen
as too out there.
“Small Business must save us”
True or False
Our Thoughts
 Fiscal measures by the government should be put in place to




spur innovation and economic activity a model that listens
and caters to the entrepreneur’s needs is much better suited
the attempting to direct and manage the entrepreneur’s ideas.
Rewards should be in place for innovative productive firms
and penalties on un productive activities. (the tail)
This would release entrepreneurial talent allowing it to work
for a productive business.
Governments need to back the organisations that foster and
improve innovative performance in the economy.
Improve the relationship between educational organisations
to encourage entrepreneurship and improve understanding of
the support from economic development agencies.