Entrepreneurship, Innovation and Growth

This paper explores the factors influencing entrepreneurs ’ attitudes toward risk and the extent to which emphasize innovation has had on the growth of venture enterprises. Conclusions are drawn from the findings gathered through a questionnaire distributed to entrepreneurs heading venture businesses in Japan. First, in Japanese venture enterprises the innovative strategies are not affected by entrepreneurs ’ attitudes to risk. However, compared with other enterprises, entrepreneurs who engage in risky undertakings and market-in innovation tend to realize a surplus soon after the company was founded. Second, although venture enterprises that adopt low-risk and low-return innovation activities have a high potential to maintainable growth, this strategy alone is inadequate; entrepreneurship that involves a riskier style of management is required. Third, innovation alone carried out by venture enterprises in Japan can not contribute directly to employment creation. Rather, by combining innovation activities with market-in characteristics, enterprises are more likely to realize a surplus quickly, then achieve maintainable growth, thus indirectly contributing to employment creation