Economic growth has become an undeniable necessity in the business world, especially given the rise in global market competitiveness and shareholders’ increasing demands for short-term returns on investment and higher dividends. In addition, “effective policies to promote growth have changed substantially over time” . Consequently, we may run into amajor paradox with the economy, depending on the viewpoint we take. Theories such as the Endogenous Growth Theory advocate a “positive growth rate of output per capita in the long run” resulting in “continual advances in technological knowledge in the form of new goods, new markets or new processes” . In other words, policy measures may have a positive impact on the long-run growth rate by“increasing the incentives to innovate” . On the other hand, shareholders who have taken over corporations and are increasingly “try[ing] to influence management to make certain changes that they say are in the shareholders’ interest” , which can be translated simply in to “letting go of some cash”4.
Moreover, given all the technological advances our century has seen, we can assume that growth can appearmore or less unusual because of the constant changes we are facing in the global marketplace. Overall, even if we can see an acceleration in the expansion process for businesses, given the changing business environment, we can refer to this as unusual growth compared to the traditional growth rate model from the past. But what really is happening is that growth itself is changing pace and rhythmto match the economic evolution of man. Mankind, in a time frame of 10 years has managed to double the world’s GDP from $32 trillion to $64.7 trillion, according to UK bank Standard Chartered. This clearly shows that growth rate is evolving and what we referred to as unusual growth (compared to the past models) is in fact a contemporary evolution of growth. So considering this new frame ofgrowth in these changing times we will have to look at its main driver, innovation, and how its main instigators, entrepreneurship and leadership influence it to successfully maintain and spur growth. Moreover looking at change will be helpful to see the effect of growth from a management point of view as well as. Finally looking at which traits leaders and entrepreneurs should develop to spur growthwill be important.
Given the business’s necessity for growth and that “growth is an accepted expectation of a firm” , we have to acknowledge the idea that “growth does not happen by itself” . Even more in today’s environment where globalization “tears down the geographic boundaries and market barriers”11, growth is instigated by innovation as a “core driver of growth” for a business.Innovation can be characterized by the “conversion of knowledge in a new product, process or service” and in an organization helps drive profitability when successful. Only in our “very rapid growth environment” , we will look at how entrepreneurship and leadership are “conducive to innovation existence” and “important agents of innovation” .
From an economic point of view, entrepreneurs can bedefined in multiple ways, but it is the entrepreneur view from economist Richard Cantillon which viewed the entrepreneur as “someone who has the foresight and willingness to assume risk and and take the requisite action to make a profit (or loss)” . This helps in placing the entrepreneur as someone who drives for profitability, which aligns P. Knights idea of “productive services yield” agent whilestill incorporating Schumpeter’s claim of entrepreneurs as innovator in his concept of “creative destruction”. Thus setting the economics aside, in more practical terms to “foster growth” , the entrepreneur has the central characteristic of being visionary, from which an idea and a subsequent opportunity emerge. This vision will ultimately create value. As his role with the opportunity, in...