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• explain how innovation and entrepreneurship contribute to growth and…

- - - - It requires an application of energy and passion towards the creation and implementation of new ideas and creative solutions.
    - - Firms with an entrepreneurial orientation tend to have high levels of risk-taking, proactiveness, innovativeness, autonomy and competitive aggressiveness
- - - - ‘collision of smaller hunches that form something bigger than themselves’ (Johnson 2010) rather than the ‘lightbulb’ inspiration stereotype that is the common understanding of how entrepreneurs create ideas.
        
        Johnson describes how most innovative ideas don’t come in a sudden stroke of inspiration, but instead spend a long time ‘dormant in the background’ and ‘can take 10 or 20 years to be accessible and useful’ to you
  - - - profit model—what to offer, what to charge or how to collect revenues;
        
        network—how you connect with others to create value;
        
        structure—how you organise and align your talent and assets;
        
        process—the methods you use to do your work;
        
        product performance—developing distinguishing features and functionality in your product;
        
        product system—how you create complementary products and services;
        
        service—how you support and amplify your offerings;
        
        channel—how you deliver your offering to customers and users;
        
        brand—how you represent your offerings and business; and
        
        customer engagement—how you foster compelling interactions with your customers (Doblin2015).
  - - - • factor-driven economies are the least developed economies, dominated by subsistence agriculture and extraction businesses, with a heavy reliance on labour and natural resources;
        • efficiency-driven economies are developing economies accompanied by industrialisation and an increased reliance on economies of scale, with capital-intensive large organisations more dominant; and
        • innovation-driven economies are more advanced economies in which businesses are increasingly knowledge intensive, with an expanding service sector.
    - - With respect to job growth expectations, a respectable 19 per cent of entrepreneurs intend to grow their businesses to an extent whereby they employ 19 or more staff within the next five years. However, just 12 per cent of Australian entrepreneurs expect to have a substantial share of customers from international markets. The GEM data also indicate that the Australian population has a high level of awareness of entrepreneurial opportunities and entrepreneurial skills compared to other innovation-driven economies. GEM (2011, p. 23) report that ‘approximately 50 per cent of the Australian population identify opportunities for a start-up venture and believe that they have the necessary skills to start a business’. Furthermore, a large majority of the Australian population report high media attention for entrepreneurship providing successful role models for prospective entrepreneurs. In the 2014 GEM report, 10 per cent of Australian respondents expressed their intention to start a business within the next three years’ (GEM 2014, p. 80).
    - - They found that the most effective way to measure entrepreneurship was by looking at three factors:
        
        the amount of entrepreneurial activity as a proportion of the working population;
        
        whether entrepreneurs were growth orientated––did they expect their enterprise to create 20+ jobs within five years?
        
        how innovative the entrepreneurs were––did they produce new products or services?
      - They also found that there were four preconditions that affected how much entrepreneurial activity there was in an economy. These were: CORS
        
        • connections with entrepreneurs;
        • awareness of opportunities;
        • entrepreneurial skills; and
        • willingness to take risks.