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The Role of Entrepreneurs and the Entrepreneurship in Underdeveloped Areas

The Role of Entrepreneurs and the Entrepreneurship in Underdeveloped Areas. Hosei University Yoshiyuki Okamoto. Introduction. Both underdeveloped countries and underdeveloped areas in developed countries Entrepreneurs as a locomotive of market economy

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The Role of Entrepreneurs and the Entrepreneurship in Underdeveloped Areas

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  1. The Role of Entrepreneurs and the Entrepreneurship in Underdeveloped Areas Hosei University Yoshiyuki Okamoto

  2. Introduction • Both underdeveloped countries and underdeveloped areas in developed countries • Entrepreneurs as a locomotive of market economy • The importance of promoting entrepreneurship

  3. What is the economic problem in underdeveloped areas? • Low employment, low income, lack of resources, low level of technology etc. • One of the causes of underdevelopment is lack of the ability to utilize resources and to coordinate capital, labor and technology.

  4. Why are not technologies transferred easily? • Existing capital equipments, exiting labor and existing technology form an economic, social and cultural system in an area, so the “social system” often refuses new technologies transferred.

  5. What is a possible orbit of economic development? • A “mechanism” is formed for the economic activity under the “social system”, and the “mechanism” must be gradually evolved by education, technology transfer etc.

  6. How should the gap be bridged between transferors and transferee? • Education can contribute to reducing the gap between the “social system” of transferee and the technology transferred.

  7. Who organize and evolve the mechanism? • It is entrepreneurs that find out business opportunities, coordinate resources and innovate the “mechanism”, and the “social system” is evolved.

  8. What is the role of entrepreneurs? • Entrepreneurs play an important role in the market economy and function as locomotives for economic development.

  9. Why aren’t entrepreneurs born at any time and anywhere? • Entrepreneurs are born mainly in the atmosphere of the entrepreneurship which is a kind of social environment in an area.

  10. Does entrepreneurship emerge even with scarce resources? • Entrepreneurship has emerged even in the industrial districts which have scarce resources.

  11. What activates science parks? • At least, three policies are necessary: • to promote entrepreneurship • to provide quick and flexible services for entrepreneurs • to make a strong network among entrepreneurs.

  12. Concluding remarks • Three ways are pointed out to promote entrepreneurship: • Education and training for new entrepreneurs • Stimulating and supporting various new businesses • Values and social rule to appreciate entrepreneurship

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