Entrepreneurship and Innovation Management 214 Complete Numbered 1

Entrepreneurship and Innovation Management 214 Complete Numbered 1 Chapter 1: The Nature and Development of Entrepreneurship Entrepreneurs are the core and essence of any economy. Economic development can be directly attributed to the level of entrepreneurial activity, and entrepreneurial business ensure growth in the economy. Examples of some successful South African entrepreneurs include Ernest Oppenheimer, Pam Golding, Elon Musk and Sol Kerzner. Most entrepreneurial activity takes place in small, medium and micro enterprises (SMME’s), which form 97.5% of all businesses in South Africa. SMME’s generate 35% of the GDP, contribute 43% of the total value of salaries and wages paid in South Africa, and employ 55% of all formal private-sector employees. The Development of the Entrepreneurship Theory While the economists have associated entrepreneurship with innovation, the behaviourists (which includes psychologists, psychoanalysts, sociologists and other specialists in human behaviour) have concentrated on the creative and intuitive characteristics of entrepreneurship. The Economists o The essence of entrepreneurship lies in the perception and exploration of new opportunities in the realm of business. It always has to do with bringing about a different use of national resources in that they are withdrawn from their traditional employ and subjected to new combinations.