Examining the role of entrepreneurship in economic growth rate with emphasis on market uncertainty

Abstract

In today's era, entrepreneurship and start-up businesses are considered the engine of economic growth, and many governments, whether developed, developing or underdeveloped, pursue the increase of entrepreneurship in their macro policies. This is despite the fact that in many cases the exact relationship between entrepreneurship and economic growth is not exactly understood due to the lack of a direct relationship. In this regard, this study has been conducted with the aim of investigating the role of entrepreneurship in the economic growth rate with emphasis on market uncertainty. The issue is whether there is a positive correlation between increasing the rate of economic growth and entrepreneurship? In other words, can the slow economic growth rate of countries be attributed to the underdevelopment of entrepreneurship? In this framework, it is important to examine the relationship between entrepreneurship development and economic growth. Undoubtedly, entrepreneurship is the engine of economic development without which no country can achieve economic development. So, is entrepreneurship considered useful for economic growth or not? This research is one of the descriptive-correlational researches, and in terms of method classification, it is survey type.

Key words: entrepreneurship - economic growth rate - market uncertainty

1 Chapter 1 Generalities of the research

1.1 Introduction

In today's world, different countries pay special attention to economy-oriented entrepreneurship and entrepreneurs in the knowledge of management and economics. Although entrepreneurship is as old as human history, the term entrepreneurship was invented in French long before the general concept of entrepreneurship emerged in today's language. The entrepreneur and entrepreneurship first came to the attention of economists, and all economic schools have described entrepreneurship in their economic theories since the 16th century. Strengthening entrepreneurship and creating a suitable platform for economic development is one of the tools for the economic progress of countries, especially developing countries. Based on the global statement of entrepreneurship, there is a strong correlation between the growth of the national economy and the level of national and organizational entrepreneurial activity. No factor in the economy can be found more important than the rate of economic growth, which directly indicates the increase in the long-term economic well-being of a nation. High economic growth and better economic development are among the goals that all economies seek, and the reason for this is the benefits and advantages that economic growth brings, the most important of which can be called the higher level of society's welfare, and this is the ultimate goal of policymakers in every country. Entrepreneurship can be fruitful in the field of society's progress and economic growth as a measure of it, and its expansion will lead to an increase in production and, as a result, a higher level of per capita income in the society. But the environmental uncertainty, which is the result of the unpredictability of the future changes in the environment, has made it difficult to measure the foresight in detecting the level of environmental turbulence; Therefore, many researchers are looking for ways to reduce the uncertainty of future issues in order to make effective strategic decisions. Therefore, it is very necessary and important to know the capabilities of the organization to reduce environmental uncertainties in strategic decisions. Experience shows that most effective entrepreneurs have been those who have spent time thinking about the current needs and future trends of their work. But the problem is that the future analysis leads to more questions than answers to the questions. Entrepreneurs who have sufficient knowledge of the internal and external conditions of the market and act actively will achieve more success.  Therefore, the organization of this research is as follows: in this chapter, we discuss the generalities of the research, first we describe the problem in question, then we present the necessity and necessity of conducting the research, then the questions and objectives of the research and finally the basic concepts of the research are presented. Therefore, in today's societies, it is necessary to have an entrepreneurial revolution in such a way that this revolution in the current century is far more important than the importance of the industrial revolution. Because this new phenomenon plays an effective role in the economic development and progress of countries and has a key role in a competitive and market-based economy. In other words, in a dynamic economy, ideas, products and services are always changing..

Entrepreneurship is a dynamic process in the direction of increasing and creating capital, and the process of hunting opportunities by individuals, regardless of the available resources, and it is basically based on the importance that entrepreneurs ignore the limitations of current resources when imagining new opportunities. In the meantime, by examining the economic growth trend of developed countries, it is clear that entrepreneurs have played a great role in economic growth and job creation. The creation of entrepreneurial thinking causes employment opportunities to increase in the society and employment, progress and development and increase the economic rate of the country. (Pour Dariani, 2016).

The rapid and accelerated developments and changes of the international society, the transition from traditional society to information society, as well as the change of the national economy to the global economy, require different solutions to provide the possibility of increasing the economic growth rate in the society. The importance of the economic growth rate shows how and in what period each economy reaches economic growth. Among the indicators of economic growth, the growth rate of per capita production is of particular importance, because this rate determines the per capita income of a country in the future.

Now, the important issue is whether there is a positive correlation between the increase in economic growth rate and entrepreneurship? In other words, can the slow economic growth rate of countries be attributed to the underdevelopment of entrepreneurship? In this framework, it is important to examine the relationship between entrepreneurship development and economic growth. Undoubtedly, entrepreneurship is the engine of economic development without which no country can achieve economic development. In the developed economic system, innovators, owners of thoughts and ideas are the main assets of an economic enterprise and are considered to be one of the main factors of sustainable development. Entrepreneurs are the pioneers of business success in society. In terms of leadership, management, innovation, efficiency, job creation, competition, productivity and formation of new companies, they have an important contribution to economic growth (Haiderpour, 2009). Evaluation of opportunities is one of the vital dimensions of entrepreneurial action and allows the entrepreneur to evaluate the efficiency of the product or service compared to the required resources. The central role in the evaluation of business opportunities is the responsibility of the entrepreneur, who evaluates and evaluates the discovered opportunities, and the result is the creation of results that are evaluated by other people (venture investors) in investor organizations (or networks). On the one hand, when an organization presents a new product to the market, it does not know about the uncertainty regarding the acceptance of this product by the market. On the other hand, the evaluation of the opportunity becomes more important due to the prevalence of high market uncertainty, low information and the need to make quick decisions. The question is, is there an optimal solution for managing market uncertainty in business? It is possible to define principles that help optimize the performance of organizations under conditions of uncertainty. For this purpose, it is possible to identify uncertainty and the sources and factors affecting it, and to identify the nature of strategic decisions, the process of strategic decision-making, and the uncertainties that occur in strategic decisions, and to deal with strategies to reduce it. Creating employment, both in the concept of creating transformation through innovations and improving processes, and as a key factor in economic growth and development, is highly needed. It is even possible to consider entrepreneurship in today's modern era as one of the main fundamental strategies of any country. One of the important criteria for distinguishing developed countries from the third world can be counted in the degree of efficiency and operationalization of entrepreneurship in its various concepts. The speed of current changes is such that identifying and predicting changes is out of uniform and consistent state, and past experiences and achievements are not required to guarantee future success. In other words, it can be said that the present age is the age of non-continuity, lack of prediction and subjugation, and the rule of this idea based on the changes of today's societies has pushed these societies more towards creativity and innovation and acceptance of difference and change, which can be found in the extent of their entrepreneurship (Nahid, 2008).

One of the most important features of today's world is the increase in complexity and competition.