Entrepreneurs are characterized by innovative thinking, since innovation is a special tool of business. Innovation is
rather economic or social concept, rather than technical. Entrepreneurship as an action is aimed at having to put in available resources new properties to create wealth. The purpose of business is focused on sourcing of innovations, as well as changes and possibilities of success. (Baumol, 2002)
An important factor contributing to the development of entrepreneurship is complexity of individual and social needs of people. The basis for this is, again, the technological progress. The needs of modern society are so diverse that only business with its flexibility and rapid response is capable to meet it more or less successfully. Demands of the society to meet the needs, just serve as an impetus to expand the scope of entrepreneurial activity. When answering to such demands, entrepreneurs provide increased efficiency of production, give the world many innovations. (Baumol, 2002)
It is in small firms, created by talented entrepreneurial people, were created the first cars, airplanes, air conditioners, cameras, instant photography, copying machines, aerosol cans, fire extinguishers, foam, zippers, safety razors, and many others are now widely used products. And today a lot of progressive ideas are born and turned into innovation in small firms, where the entrepreneurial spirit is particularly strong. Innovations are the “engine”¯ of growth, which increase the role of entrepreneurship in society. (Schramm, 2006)
Baumol, W.J., 2002, The Free-Market Innovation Machine: Analyzing the Growth Miracle of Capitalism, Princeton: Princeton University Press.
Baumol, W. J., 2006, “Entrepreneurship and Invention: Toward Their Microeconomic Value Theory”¯. Special Session on Entrepreneurship, Innovation and Growth I: Theoretical Approach, American Economic Association Meetings.
Casson, M., 1982, The Entrepreneur: An Economic Theory, Totowa, NJ: Barnes & Noble Books.
Deakins, D.; Freel, M. 2009. Entrepreneurship and Small Firms, McGraw Hill.
Kirby D., 2002. Entrepreneurship. McGraw-Hill Higher Education
Schramm, C. J., 2006, “The Entrepreneurial Imperative: How American’s Economic Miracle Will Reshape the World (and change your life). New York: HarperCollins.
Stokes D., 2010. Entrepreneurship. CENGAGE Lrng Business Press