Scribd
Upload
18 views

An Entrepreneur Is Willing and Able To Convert A New Idea or Invention Into A Successful Innovation

An entrepreneur is willing and able to convert a new idea or invention into a successful innovation. Creative destruction is a theory where new innovations bring an end to existing arrangements and assumptions in order to free up resources for new ideas. Henry Ford's assembly line revolutionized automobile manufacturing but also displaced older markets and workers.

Uploaded by

Sry Ayuni
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
18 views

An Entrepreneur Is Willing and Able To Convert A New Idea or Invention Into A Successful Innovation

An entrepreneur is willing and able to convert a new idea or invention into a successful innovation. Creative destruction is a theory where new innovations bring an end to existing arrangements and assumptions in order to free up resources for new ideas. Henry Ford's assembly line revolutionized automobile manufacturing but also displaced older markets and workers.

Uploaded by

Sry Ayuni
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 3

DEFINITION OF

ENTREPRENEUR
An entrepreneur is willing and
able to convert a new idea or
invention into a successful
innovation

CREATIVE DESTRUCTION
A process through which something new brings about the demise of whatever existed
before it. This term was created in 1942. The term is used in a variety of areas including
economics, corporate governance, product development, technology and marketing.

The theory of creative destruction assumes that longstanding arrangements and assumptions
must be destroyed to free up resources and energy to be deployed for innovation.
Creative destruction theory treats economics as an organic and dynamic
process. Equilibrium is no longer the end goal of market processes. Instead,
many fluctuating dynamics are constantly reshaped or replaced by
innovation and competition.
EXAMPLE

Henry Ford's assembly line revolutionized


automobile manufacturing and many
other manufacturing industries, but it also
displaced older markets and forced many
laborers out of work.
The point, as Schumpeter noted, is that an
evolutionary process rewards improvements
and innovations and punishes less efficient
ways of organizing resources. The trendline is
toward progress, growth, and higher
standards of living overall.

As is implied by the word destruction, the


process inevitably results in losers and
winners. Entrepreneurs and workers in
new technologies will inevitably create
disequilibrium and highlight new profit
opportunities. Producers and workers
committed to the older technology will be
left stranded.

You might also like