The concept of entrepreneurship is ingrained in the study of microeconomics and traces back to the days of Adam Smith. Entrepreneurship is a factor which enhances the productive capabilities of any manufacturing or production process. According to renowned Austrian economist Joseph Schumpeter, an entrepreneur is one who converts new ideas and inventions into a successful innovation. “The gale of creative destruction” was the phrase used by the economist in describing the process which successful entrepreneurs employ to radically transform inferior and time consuming innovations and business models into more effective ones. Thus the need for smart and dynamic entrepreneurs is felt over the world as they can transform a dormant economic ecosystem into an energetic one, one which is bustling with activity and creativity.

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What Have Entrepreneurs Done To Industrial Output At Large?

Does an entrepreneur create newer ideas based on newer inventions? What does it take to be a successful entrepreneur? These are questions which may seem difficult to come up with suitable answers with. Entrepreneurs have to possess a unique bent of mind. They must be able to visualise everyday normal incidents in a different light than all others surrounding them. What that essentially means is that entrepreneurs do not need to be exceptionally brilliant individuals with degrees from the ivy league colleges of the world, but be able to use all information at hand and process the same to come up with unique solutions to the most complicated of problems. One example will help you understand what the last statement means. The replacement of paper with plastic used in the drinking straw is a simple yet effective innovation.

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Do You Have The Vision In You?

What innovations such as these does, is that it decreases the time taken to manufacture a particular commodity and also increases the longevity of a product. Thus the consumer has at his disposal better quality articles of daily use at even cheaper prices. Naturally the time taken to manufacture the products being reduced, more is manufactured in lesser time. Industrial output automatically increases. The market structure changes as more firms enter into the market to manufacture similar goods. The natural monopolies are brought down to the ground and a more competitive market framework emerges. Dead-weight loss of the entire society is thus minimised and all individuals in the same move on to better and higher social indifference curves. Entrepreneurs touch lives of people with their unique ideas and visions