Entrepreneurship, Knowledge And State: Environment Necessary For Sophistication Of Countries Production

Entrepreneurship, knowledge and state: environment necessary for sophistication of countries production

During the last decades considerable progress has been made in our understanding of the relationship between knowledge and growth by one hand, and entrepreneurship and growth on the other. Similarly, more deep knowledge has also been obtained on how to undertake, innovate and their relationship with knowledge. However, there is still an integral understanding of the interface of all these variables: knowledge, innovation, entrepreneurship and growth.

Entrepreneurs are often considered national assets that can be molded, motivated and paid as much as possible. Entrepreneurs can improve our lifestyles. If they succeed, their revolutions can improve our quality of life. In summary, in addition to creating wealth from their ventures, they also create jobs and conditions for a flowering of society.

Entrepreneurial capital is defined as the provision of a region with conducive factors for the creation of new businesses which exerts a positive impact on the economy of the region. Regions with a higher level of business and entrepreneurial capital show higher levels of production and productivity, while those who lack this capital have a tendency to generate lower levels of production and productivity.

Innovative offers of entrepreneurs, in the form of new goods and services, result in a new job, which can produce a cascade effect or a favorable circle on the economy.

Business stimulation or related sectors that support the new company adds to greater economic development. For example, the flowering of some companies in the information technology area generates millions of other sectors to be beneficiaries of it. Business in associated industries, such as Call Center operations, maintenance of companies and hardware and software suppliers. However, future development efforts in underdeveloped countries such as Colombia will require solid logistical support, capital investment and trained personnel, that is, knowledge is required to encourage innovation and with it the sophistication of the production of countries. In this way it is observed that entrepreneurship offers benefits in a broad spectrum of the economy.

Entrepreneurship literally generate new wealth. New and improved offers, products or technologies of entrepreneurs allow new markets to develop and create new wealth. In addition, the cascade effect of greater employment and higher profits contributes to a better national income in the form of higher tax revenues and higher government expenses. These income can be used by the government to invest in other sectors and human capital.

Through their unique offers of new goods and services, entrepreneurs separate from tradition and indirectly support freedom by reducing the dependence of obsolete systems and technologies. In general, this results in a better quality of life and greater economic freedom. Entrepreneurs regularly encourage business enterprises by other people with related ideas. They also invest in community projects and provide financial support to local beneficial organizations. This allows greater development beyond that of its own companies. Some famous entrepreneurs, such as Bill Gates, have used their money to finance beneficial causes, from education to public health. The qualities that make a person an entrepreneur are the same qualities that motivate entrepreneurs to bet on new ventures and the construction of a better nation with positive effects in their areas of influence.

However, in order for ventures to provide all the aforementioned benefits, the State must be its ally. Regulations play a crucial role in promoting entrepreneurship, but regulation requires perfect balance by the regulatory authority. If it is not regulated, the entrepreneurial spirit can lead to unwanted social results, including a market with unfair practices, generalized corruption, financial crisis and even criminal activity. Paradoxically, a significantly high number of entrepreneurs can lead to fierce skills and loss of options for other individuals. With too many ventures, aspiration levels usually increase. Due to the variability of success in ventures, the scenario of having too many of these can also lead to income inequalities, making citizens more unhappy.

The interaction of entrepreneurship and economic development is of vital importance. Therefore, a balance between State policies, promotion and development institutes and business owners is necessary. Public policy must promote adequate conditions for more dynamic and sophisticated ventures to grow quickly and sustained, integrating technology and innovation into their processes. If we understand the benefits and disadvantages, a balanced approach can be generated to promote business spirit, which will definitely result in a positive impact on the economy and society.

However, balance with the State and its regulations are not the only factor to take into account, knowledge is also necessary, since innovation comes. By connecting knowledge, innovation and entrepreneurship, it is essential to emphasize the non -routine, those processes that are conspicuous phenomena of economic development dynamics.

Innovation is frequently considered as a linear process, being a result of activities and a set of other processes, such as learning, cognitive skills, perceptions, etc. Curiosity, research and experiments are crucial parts of the innovation process. Entrepreneurs’ knowledge generation activities have been shown as the result of the investigation of different functional areas. This means that the creation of relevant knowledge for innovation and economic growth is required. In Colombia it is necessary to articulate the education system, with technological and innovation trends to respond to the needs and trends of local, national and even international markets.

The entrepreneurship process in relation to knowledge could be divided into three stages. The first stage implies the technical discovery of new things or new ways of doing things. In the second stage, innovation occurs, that is, the successful marketing of a new good or service derived from a new combination of knowledge (new and old). The last stage is the imitation, the stage in which the new processes, goods or services to the market are disseminated.

Despite making small investments and other formal activities that generate knowledge, entrepreneurs and small businesses can still substantially contribute to aggregate innovation, thanks to their entrepreneurial skills. However, there is no guarantee that this new knowledge with commercial potential is transformed into an entrepreneurship. Companies and entrepreneurs have to develop strategies to balance knowledge and innovation with their processes to find windows of opportunities that allow to accelerate the exploitation of innovative resources. At this point, the State and the Financial System, evaluating prospective ventures, mobilizing and channeling savings for financing and increased productivity, and creating public policies, play a vital role. Therefore, the design of financial systems and state policies influences the growth of innovative, successful, scalable and dynamic entrepreneurship models.

In conclusion, a perfect symbiosis between the State and entrepreneurs is required, promoting the creation of knowledge that lead to innovation and the creation of propitious environments so that entrepreneurship is given and becomes a engine of competitiveness and growth for thecountry.