Role of Entrepreneurship in Future Economic Development of Taiwan

Mahendar  Kumar

doi:10.4236/ojbm.2015.34038

Mahendar Kumar

Abstract: Historically, entrepreneurship played a central role in the economic development of Taiwan. Therefore, small and medium sized enterprises are considered a backbone of the Taiwanese economy. The purpose of this study is to elaborate the role of small and medium sized enterprises (SMEs) in terms of non-technical innovation of SMEs, human resource productivity of SMEs and government policies regarding SMEs in the future economic development of Taiwan and to analyze the SMEs role in terms of its social and economic impact and finally to produce conclusive statements based on the final observations. This research is based on transaction cost theory and it was conducted in Bangkok, Thailand. The research is qualitative with an inductive approach in nature. Final findings were based on five observations; the first three observations showed that there was a definite relationship between non-technical innovation, human resource productivity and government policies regarding SMEs with the future economic development of Taiwan and the remaining mentioned that the annual sales share of SMEs in Taiwan was only 30% in 2012 and export sales share was only 17.74%; but on the social front, SMEs accommodated more than 79% of workforce in Taiwan. These observations are combined to produce final statement of this research.

Keywords: Entrepreneurship, Economic Development, Non-Technical Innovation, Human Resource Productivity

Cite this paper: Kumar, M. (2015) Role of Entrepreneurship in Future Economic Development of Taiwan. Open Journal of Business and Management, 3, 389-402. doi: 10.4236/ojbm.2015.34038.

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