Abstract:
Due to the tough on-going competition between producers of commodities and services, the prices of products are continuously going down nowadays. To avoid bankruptcy in such circumstances, organizations have focused on the application of technological innovations that enable them to respond to the needs of their clients. It is to this end that they attempt to gain th e market an d increase their sales to satisfy their clients and ultim ately, depending upon the innovation, competitiveness and technological advancement, make fortune. Therefore, utilizing economic models, where innovation plays a pivotal role in growth and development has drawn the attention of many policy makers and managers.One of the most important economic models is entrepreneurship model based on Schumpeter’s theory which statesthat entrepreneur and enterprises are the engine to drive and generate economy; the establishment of new entrepreneurship enterprises based on innovation and creative destruction to provide value added is a central issue accordingly .The basis for establishing new entrepreneurship enterprises is discussed form five angles in Schumpeter’s theory. This includes innovation in offering new product, the production processes, making changes in raw materials and cutting prices, seeking new markets and developing the organization. However this theory has not any methodology to determine of types of the best innovation to create the most value added; this paper intends to develop Schumpeter’s theory through presenting an entrepreneurship model.The results shows that enterprises can attain the best type of innovation and make the most value added in their entrepreneurship projects, if they scrutinize their contingency conditions and fit them into the selected model. Last but not least, this model is suggested to active enterprises as internal entrepreneurs
Machine summary:
One of the most important economic models is entrepreneurship model based on Schumpeter’s theory which statesthat entrepreneur and enterprises are the engine to drive and generate economy; the establishment of new entrepreneurship enterprises based on innovation and creative destruction to provide value added is a central issue accordingly .
Ke y w o r d s : Entrepreneurship, Innovation, Technological changes, Value add ed, Mod el INTRODUCTION Nowadays, in many economic development models, the issue of entrepreneurship is propounded as an approach for exiting crises and achieving economic growth, but the issue of entrepreneurship is always accompanied by the issue of creating small and medium sized companies.
Therefore, he decided that if the newly established small and medium sized entrepreneurial companies cannot create added value through making innovations, then the process of creating economic growth and development will face essential problems.
Making innovations in modifying the internal organization of a company The five cases mentioned above, which constitute the basis of an entrepreneurship to create value added and economic growth, can be attributed to the theory of entrepreneurship proposed by the great economist, J.
Therefore, by considering two general issues regarding the internal a n d ex t er n a l fa ct or s g over n i n g t h e bu s i n es s environment, which can be utilized as parameters and variables, that affect the selection of the type of innovation in the process of entrepreneurship, we started to study and examine these issues in order to develop and improve this model.