The Role of Entrepreneurs and the Entrepreneurship in Underdeveloped Areas

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 arent 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