In my opinion, such a relationship exists because if the scale of entrepreneurship and possibly also the innovation is increasing, the number of business entities increases. At the same time, the level of unemployment is dropping, production is growing, investments are growing, citizens' incomes are rising, corporate profits are growing, state budget revenues are growing, etc. They are often strongly correlated processes in the context of business cycles. However, the correlation analysis should cover medium and long periods, i.e. at least for a few quarters or a few years. In shorter periods, these correlations do not have to be strong and persistent because they may be subject to other short-term market factors and resulting from changing legal norms relating to economic activity and / or changes in the tax system, financial system that grants external financing to an economic entity in the form of loans, etc.
Do you agree with me on the above matter?
In the context of the above issues, I am asking you the following question:
Does the growth of entrepreneurship and innovation usually affect the improvement of economic growth?
Please reply
I invite you to the discussion
Thank you very much
Best wishes
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