Academic journal article Management : Journal of Contemporary Management Issues

Dynamic Entrepreneurship - Generator of Sustainable Economic Growth and Competitiveness*

Academic journal article Management : Journal of Contemporary Management Issues

Dynamic Entrepreneurship - Generator of Sustainable Economic Growth and Competitiveness*

Article excerpt

1. INTRODUCTION

In this paper, we present the most important findings of the initial research and comparison of dynamic entrepreneurship that has been carried out in Croatia, Montenegro, Slovenia, and Serbia. We find that dynamic enterprises do not significantly differ in growth rates. If backed up by a favorable environment and supportive atmosphere for entrepreneurship, gazelles could catch up with their counterparts in the EU in ten years' time. Among factors for growth, the most critical are: environmental barriers, management systems and financing. Fast growing companies are crucial to the recovery of the economy.

Gazelles are the fast-growing companies that create most of the newly created jobs in the national economies. They represent not more than 3-5% of companies in the total number of businesses. These companies can achieve above average growth rates and can operate in any field of activity, even in those with low growth rates. The creator of the name gazelles is David Birch (Birch, 1987), professor of entrepreneurship from Boston MIT and founder of research and consultancy company Cognetics. During the seventies, with a booming Silicon Valley, it was learned that only 3% of the companies (the so- called dynamic businesses, gazelles) both survive and continue to grow.

2. THEORETICAL CONTEXT OF DYNAMIC ENTREPRENEURSHIP

We have established that entrepreneurship, entrepreneur and the entrepreneurial organization have their roles in the economic science as well as in business science and that entrepreneurship cannot be automatically equated or restricted to small business only, or to the creation of new enterprises. However, both in literature and in everyday life this connection is frequently used and can be attributed to the fact that new economic entities do not emerge unless there is an entrepreneurial approach and entrepreneurs. On the other hand, there are not many economic entities in the small business sector that act in an entrepreneurial way, have real potential for growth, or demonstrate wish to generate growth.

We recognized the necessity of an interdisciplinary treatment of entrepreneurship as a socio-economic phenomenon of the twenty-first century (Psenicny, 2002), linking at least three basic approaches:

(1) the economic aspect: from the macro-economic and socio-economic aspects we can establish, assess and measure the contribution of entrepreneurship to the economic growth, employment, advanced stage of the country's economy, and the prosperity of the society. From the micro-economic point of view, we can establish the economic effects of individual entrepreneurial entities, their optimum size to achieve the expected return and balance the use of resources to achieve the maximum effects;

(2) the business-organizational aspect helps us to assure the economic goals in an entrepreneurial organization - an enterprise - and administer and manage the business functions that are prerequisite for the specialization of entrepreneurship to achieve the economic and socio- economic goals;

(3) the aspect of entrepreneurial management and entrepreneurial behavior allows us to clarify, to a certain extent, what the entrepreneurial handling and conduct of the entrepreneur (or the entrepreneurial team) and the entrepreneurial organization should be like to be able to apply the professional techniques and models developed by the business and organizational science and achieve economic, as well as non-economic goals as set by the entrepreneur and all others entering the organizational relationship.

We have restricted our study of entrepreneurship at this point of time to a narrower scope - the dynamic entrepreneurship and its role in economic growth. This has proved to have an exceptional macroeconomic role, and the growth of the most dynamic enterprises contributes crucially to the growth of national economies, social prosperity, job creation, technological progress and development, and also creates the highest added value (Psenicny, 2009). …

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