|M.Sc Student||Andrew Kygi|
|Subject||Entrepreneurship Risk-Taking Innovation and Levels of Econo|
|Department||Department of Architecture and Town Planning||Supervisor||Professor Czamanski Daniel|
Economic growth and development is a discontinuous and cumulative process that occurs as a series of elementary innovations which become organized into innovation clusters and ultimately translated into growth impulses. Innovation processes representing a continuous stimulation and transformation of the economy on all scales of planning (rural, urban, regional and national), require an abundant supply of risk-seeking entrepreneurs.
Entrepreneurs are subsequently recognized as central to the economic, growth process and represent a vital propelling mechanism. Planners, especially economic planners therefore need to understand entrepreneurs' behavioral tendencies in order to create the necessary conditions consistent with their risk-taking and innovation capabilities
This paper is an attempt to converge existing theoretical thought on these two vital behavioral elements of entrepreneurs and to relate their importance to the process of economic planning.
A number of existing behavioral models and theories, including the Imitation and Diffusion of Innovation Technologies Model, (Katsuhito, 1983) and the Risk-Preference Theory (March, 1983) are used to replicate these behavioral tendencies.
Finally, the extant economic environments in most developing countries and the way they inhibit entrepreneurial risk and innovation behavior (and implicitly economic growth), are examined It is quite conclusive from the survey that the major inhibiting environments are both objective and subjective in character. The objective factors include the reward system for entrepreneurial activity; the extent of markets; relative factor prices and the absence of appropriate productive networks. The subjective factors include the existing socio-cultural and political resistances to private entrepreneurial activity expressed in an aversion for and a deligitimization of individual profit-making.
Generally, it is recognized that home-grown or small-scale firms (product and service) represent the focus for generating entrepreneurial activity and therefore economic growth in both developed and developing economic environments.