Entrepreneurship,innovation and economic growth

The linkages among entrepreneurship, creativity, innovation and economic growth are only vaguely understood presently. This paper is an attempt to improve that understanding. The first step in establishing the linkages requires the formulation of knowledge about the psychological make-up of entrepreneurs. These questions are pertinent: What motivates humans to become entrepreneurs? Are entrepreneurs “rational economic men”? How important are monetary rewards to entrepreneurial creativity ? The second step requires information about how the human brain functions. The brain is bi-hemispheric and both sides of the brain play an important role in human decision-making. Nevertheless, we have a cultural bias in favor of the functions performed by the brain's left side. The third step requires an understanding of the process of creation and innovation. Several stages in this process have been identified. The stages of preparation, incubation, and illumination involve the brain's right hemisphere while the verification stage involves the left hemisphere. The final step integrates the first three. We assume that entrepreneurship is an essential determinant of economic growth, that the entrepreneurial function involves creation and innovation, and that entrepreneurship can be taught. This article is intended to provoke thinking and research incorporating new insights from several disciplines. These insights appear to bear more on entrepreneurship than is generally acknowledged.