- Tags:
- Show more
- Pages:
- 10
- Words:
- 2750
Critical Analysis Paper Name Institutional Affiliation Critical Analysis Paper Introduction to Entrepreneurship Entrepreneurship defines a process of designing, running and developing new business. According to Chaston and Scott (2012), it also includes the capacity and willingness to take risks in introducing new product or service and manage it effectively to become a success. It relates to the economy in that through its various innovations; an economic benefit is achievable. It also provides a healthy economy brought by the dynamic disequilibrium resulting from the change. In addition to these advantages, the creation of jobs and wealth are universal benefits. Although it provides multiple advantages, its application at times may result in failure further aggravating the situation. Changes in the economy in conjunction with history in entrepreneurship, proof that innovations are not an apparent success. Thus, this paper looks into innovation and economic downfalls. It argues through examples that entrepreneurship drive and persistence have not always managed to provide solutions. Economic Downturn Based on Fairlie (2013), economic recessions occur when the rate of monetary growth is slow progressing towards recession. It is part of the business cycle lasting for a few months. It includes periods when the economic growth amounts to 0%. Characteristics of this period include high inflation rate, an increase in poverty and rise in unemployment. Weak economic or negative economic growth, falling asset prices and falling assets mark the key features of the cycle. It is imperative to understand that there is usually an increase in government borrowing following
Leave feedback