Analyzing Three Levels Of Entrepreneurship Individual...

The model above is analyzing three levels of entrepreneurship: individual level, firm level and macro level. Entrepreneurial activity starts at the individual level and is always trackable a single person, which is the entrepreneur. Entrepreneurship is induced by an individual’s skills, attitudes, motives and psychological ability. The entrepreneur as an individual is affected by the circumstances in which he or she is acting, as a result, entrepreneurial actions and motives are influenced by the business environment, cultural and institutional factors and macroeconomic conditions (Pirich, 2001). According to the model above the origin of entrepreneurship will be at the individual level, but the realization of it, is achieved†¦show more content†¦Another reason is entrepreneurs can add to national income in form of higher tax revenues which can lead to higher government spending for other struggling sectors and human capital. Entrepreneurship can create social changes through their unique contributions to new goods and services by reducing the dependence on outdated systems and technologies in this way they improve the quality of life (Seth 2016). Looking at the equation; Economic Development = Economic Growth + Standard of Living (Seth, 2016) and findings above, we can see clearly the relation between the entrepreneurship and economic development. Entrepreneurship is having a positive impact on economic growth and standard of living and in this way, indirectly, is impacting positively the economic development. 2.2 SMEs Owned by Immigrant Entrepreneurs and Their Impacts in Economic Growth Issues related to what actually constitute medium or small scale enterprises are something of a major concern in most literature. Different categories of definitions have always been provided by different authors. SMEs have not been indeed spared with the definition problem that is commonly associated with concepts having numerous components. Different researchers define firms by size based on their own opinions. While others base their definitions on capital assets, others use turnover level and skill labor. Others also define SMEs based on production method and legal status of the business (Brzozowski,