Paying tribute to entrepreneurs: entrepreneurs are the decisive factors in Economic growth-Shanghai Metals Market

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Paying tribute to entrepreneurs: entrepreneurs are the decisive factors in Economic growth

Translation 12:17:32PM Feb 15, 2019 Source:Shanghai Nonferrous Metals Network

SMM News: since 2018, China's consumer market has appeared some conditions, showing that China's domestic demand market is weak, the state is worried about the consumer market, various ministries and commissions take the lead to frequently promote consumption and stimulate the economy.

Have you noticed why Germany and Japan, which were defeated in World War II, were able to recover in 20 or 30 years after the war, and their economies soared to the forefront of the world? This is closely related to the huge resources of outstanding entrepreneurs in Germany and Japan. In the final analysis, economic growth is driven by entrepreneurs. In essence, the quality of a country's economy depends on the pros and cons of entrepreneurs and on the strength of entrepreneurial spirit. In his Theory of Wealth of Nations, Adam Smith studies in detail how national wealth is created, which can be summed up as the "Smith growth model." according to him, economic growth depends on the improvement of productivity. The improvement of productivity comes from technological innovation and progress, technological innovation and progress depends on the division of labor and specialization, and the division of labor and specialization is determined by the market scale, thus forming a positive feedback. But there is one question that has not been fundamentally answered, and that is, who is driving the whole process, Schumpeter answered in his book Economic Development Theory, which is entrepreneurs. In his view, entrepreneurs are the soul of market economy and the main organizers and promoters of innovation, the "new combination" of production factors and economic development. Seduced by huge profits, entrepreneurs continue to find imbalances and create imbalances. It is precisely because of their efforts that new markets have been opened up, labor, capital, and resources have been gathered and effectively allocated, and a new division of labor has emerged. Technological innovation and progress have become possible, so Professor Zhang Weiying points out that entrepreneurs are the "kings" of economic growth.

Porter, a master of strategy, has divided economic development into three stages: factor-driven, efficiency-driven and innovation-driven. He believes that in these three stages of economic development, the importance of entrepreneurship is increasing in turn.

In my opinion, factor-driven is a very extensive and simple model of economic development. Labor, capital and land are hastily combined, technology is readily available, equipment can be imported, the quality of labor force does not need to be too high, and resources are directly available. GDP just came out.

Efficiency drive requires entrepreneurs to make a reasonable allocation and arrangement of existing resources, and entrepreneurs to make a subjective judgment of what to produce and where to produce according to the market information collected and their own experience and knowledge. Where the capital comes from, whether there will be profits in the future, whether the products will be sold, entrepreneurs need to think about it, and the risk of misjudgment is very high, so entrepreneurs take great risks in starting a business. What makes entrepreneurs willing to take huge risks to start a business is not his Lei Feng spirit, but the huge profits and returns of the future market.

Innovation is driven by entrepreneurs. Schumpeter defines invention as a breakthrough in technology, and innovation is positioned as a large-scale application of new technology. From the invention of a technology to the development of technology to the application of technology, entrepreneurs play a vital role. Bill Gates let computers into thousands of households, Jobs let smartphones subvert the world, Taobao's genius creativity so that physical stores are not what they used to be, behind them are the meritorious work of entrepreneurs, the promotion of entrepreneurial spirit. It was not the watts that made the steam engine work, nor did it be Edison who lit up the world with electric lights. The large-scale application of all new technologies could not have been done without entrepreneurs. Without the innovation of entrepreneurs, invention and creation could not have become a force for economic growth.

When it comes to entrepreneurship, it belongs not only to entrepreneurs, but also to others. There are only a few people who have this spirit. They are the most elite people in a country. They can be engaged in invention and creation, but also can engage in command work, with this spirit, they are enough to become the best in all kinds of industries. When an entrepreneur has this spirit, it will be enough to bring new life, new ideas, new motivation to the world, and enough to shake up the whole human world. This spirit is also known as the spirit of innovation, heroism and so on, in which the spirit of innovation is the root of entrepreneurial spirit.

The future development of China needs to train such a group of entrepreneurs with entrepreneurial spirit to ride through the winds and waves in the treacherous market and give full play to their smart talents in order to lead the Chinese economy out of the quagmire.

Paying tribute to entrepreneurs: entrepreneurs are the decisive factors in Economic growth

Translation 12:17:32PM Feb 15, 2019 Source:Shanghai Nonferrous Metals Network

SMM News: since 2018, China's consumer market has appeared some conditions, showing that China's domestic demand market is weak, the state is worried about the consumer market, various ministries and commissions take the lead to frequently promote consumption and stimulate the economy.

Have you noticed why Germany and Japan, which were defeated in World War II, were able to recover in 20 or 30 years after the war, and their economies soared to the forefront of the world? This is closely related to the huge resources of outstanding entrepreneurs in Germany and Japan. In the final analysis, economic growth is driven by entrepreneurs. In essence, the quality of a country's economy depends on the pros and cons of entrepreneurs and on the strength of entrepreneurial spirit. In his Theory of Wealth of Nations, Adam Smith studies in detail how national wealth is created, which can be summed up as the "Smith growth model." according to him, economic growth depends on the improvement of productivity. The improvement of productivity comes from technological innovation and progress, technological innovation and progress depends on the division of labor and specialization, and the division of labor and specialization is determined by the market scale, thus forming a positive feedback. But there is one question that has not been fundamentally answered, and that is, who is driving the whole process, Schumpeter answered in his book Economic Development Theory, which is entrepreneurs. In his view, entrepreneurs are the soul of market economy and the main organizers and promoters of innovation, the "new combination" of production factors and economic development. Seduced by huge profits, entrepreneurs continue to find imbalances and create imbalances. It is precisely because of their efforts that new markets have been opened up, labor, capital, and resources have been gathered and effectively allocated, and a new division of labor has emerged. Technological innovation and progress have become possible, so Professor Zhang Weiying points out that entrepreneurs are the "kings" of economic growth.

Porter, a master of strategy, has divided economic development into three stages: factor-driven, efficiency-driven and innovation-driven. He believes that in these three stages of economic development, the importance of entrepreneurship is increasing in turn.

In my opinion, factor-driven is a very extensive and simple model of economic development. Labor, capital and land are hastily combined, technology is readily available, equipment can be imported, the quality of labor force does not need to be too high, and resources are directly available. GDP just came out.

Efficiency drive requires entrepreneurs to make a reasonable allocation and arrangement of existing resources, and entrepreneurs to make a subjective judgment of what to produce and where to produce according to the market information collected and their own experience and knowledge. Where the capital comes from, whether there will be profits in the future, whether the products will be sold, entrepreneurs need to think about it, and the risk of misjudgment is very high, so entrepreneurs take great risks in starting a business. What makes entrepreneurs willing to take huge risks to start a business is not his Lei Feng spirit, but the huge profits and returns of the future market.

Innovation is driven by entrepreneurs. Schumpeter defines invention as a breakthrough in technology, and innovation is positioned as a large-scale application of new technology. From the invention of a technology to the development of technology to the application of technology, entrepreneurs play a vital role. Bill Gates let computers into thousands of households, Jobs let smartphones subvert the world, Taobao's genius creativity so that physical stores are not what they used to be, behind them are the meritorious work of entrepreneurs, the promotion of entrepreneurial spirit. It was not the watts that made the steam engine work, nor did it be Edison who lit up the world with electric lights. The large-scale application of all new technologies could not have been done without entrepreneurs. Without the innovation of entrepreneurs, invention and creation could not have become a force for economic growth.

When it comes to entrepreneurship, it belongs not only to entrepreneurs, but also to others. There are only a few people who have this spirit. They are the most elite people in a country. They can be engaged in invention and creation, but also can engage in command work, with this spirit, they are enough to become the best in all kinds of industries. When an entrepreneur has this spirit, it will be enough to bring new life, new ideas, new motivation to the world, and enough to shake up the whole human world. This spirit is also known as the spirit of innovation, heroism and so on, in which the spirit of innovation is the root of entrepreneurial spirit.

The future development of China needs to train such a group of entrepreneurs with entrepreneurial spirit to ride through the winds and waves in the treacherous market and give full play to their smart talents in order to lead the Chinese economy out of the quagmire.