The role of entrepreneurship in economic development involves more than just increasing per capita output and income; it involves initiating and constituting a change in the structure of business and society.
This change is accompanied by growth and increased output, which allows more wealth to be divided by the various participants.
Entrepreneurship is the model and method for successfully bridging the gap between science and the marketplace. Many entrepreneurs have a hard time bridging this gap and creating new ventures. In such cases, they may lack management skills, marketing capabilities, and financial resources.
Their inventions can often be unrealistic and need significant modification to become marketable. Companies are looking to offer services to solve the problems of society and lead the national economy with sustainable growth.
They will provide local jobs in addition to improving the productivity for economic growth. Entrepreneurs use innovative technologies to boost economic growth. An increase in competition from entrepreneurs challenges existing firms to become more competitive.
Product-Evolution process: process for developing and commercializing an innovation
Iterative synthesis: The intersection of knowledge and social need that starts the product development process.
Ordinary innovation: new products with little technological change
Technological innovations: New products with significant technological advancement.
Breakthrough innovations: new products with some technological change.
Government as an innovator: A government active in commercializing the technology.
Technology transfer: Commercializing the technology in the laboratories into new products.
A simple example we can take for Nepal, Nepali economy revolves around the service side industry and agricultural industry. If entrepreneurs can focus on understanding the problem and solving it could probably help Nepal not to depend on any other country for food and other supplements it could boost the Nepali economy massively.