The document discusses entrepreneurship and human development as two tools for societies to effectively use resources, meet basic needs, and increase well-being. Entrepreneurship stimulates economic growth and development by increasing revenues, promoting innovation, and improving product quality. Human development complements economic growth by emphasizing capabilities, income equality, and democratic institutions. Both tools are needed for sustainable development and wealth generation.

1. The Concept of Entrepeneureship
through Human Development
Paradigm
Senior Lecturer Cristina Balaceanu
Lecturer Diana Apostol
UCDC, Bucharest

2. Summary
• In essence, the goal of any society is that of
developing on the line of a superior
capitalization of resources, of covering life
necessities and of satisfying the beatitude state
of spirit.
• Two instruments:
– Entrepreneurship as a tool for human and economic
development;
– Human development as a tool to increase the
quality of life and to stimulate the entrepreneurship

3. Entrepreneurship
• By the entrepreneurship:
– The development of economy through increasing
revenues (entrepreneurs, society in general);
– Stimulates the initiative and creativity
(innovation);
– Increase of life quality via improving the quality
of competing products;
– Affect the institutions management by the
direction of efficiency, requires adequate
economic and fiscal policy.

4. Entrepreneurship
• What does support / not support the
entrepreneur?
– The un / sustainable taxation: taxation optimum is
reached where the tax rate increase does not affect the
future budget revenues (Laffer);
• Overcoming the Laffer optimum point affects the
investment and increases the underground economy:
– In 2011, the tax rate in Romania was 44.4% of income
(World Bank, 2012), the lowest level since 2006;
– The tax rate correlated with the large number of taxes
(113) discourages entrepreneurial initiative

5. Entrepreneurship
Fig.1: Total tax rate Fig.2: Tax payments
(% of profit) in Romania (number) in Romania

6. Entrepreneurship
Fig.3: New businesses registered (number) in Romania

7. Entrepreneurship
– Commercial protectionism and promoting
the products with high technological /
innovative contribution, energy efficient,
recyclable, etc.;
– Financial and banking policies favorable
to investment: no more state funding, but
economy is crucial.

8. Fig.4: Firms using banks to finance
investment (% of firms) in Romania

9. Human Development
• As a complementary process to the growth, and
directly dependent on the economic and social
policies:
– Emphasizing the human dimension of public policy;
– Providing sufficient income to meet the basic needs (reducing
the disparities);
– Emphasizing the capabilities, competencies and skills
development in the socio-economic sphere;
– Emphasizing on the decision decentralization and the in /
direct participation of the individual;
– Emphasizing on the democratic institutions in order to
realize socio-economic stability.

10. Human Development
• The Pyramid of L.C. Thurow- the combined
strategy for the growth of wealth :
Wellness
Resources
Tools
Abilities
Knowledge developing
Undertaking initiative
Social organization

11. Human Development
• L.C. Thurow:
– The economic factors, the psychosocial
factors and the governance factors and / or
organization:
- Required for the development process in primary
form;
- Necessary for the wealth generation via
generation / accumulation of knowledge;
- Needed to organize and manage the society to
ensure stability and safety

12. Human Development
• The state can support the human
development through a system of
levers:
– Supporting a banking system of preferential
credit;
– Providing technical assistance and business
expertise to young entrepreneurs;
– Supporting the entrepreneurship development
through subsidies, selective tax policies etc.;

13. Human Development
– Redirecting the private initiative on those
sectors of the economy where there are
resources but they are underutilized;
– Encouraging the public-private partnerships
where the profitability rate is low but the
society benefit is guaranteed;
– Professionalizing the education system:
adapting the education to market demands.

14. Conclusion
Entrepreneurship and Human Development
• Two tools for superior capitalization of
resources, for basic needs coverage and for
satisfying the state of bliss:
– Entrepreneurship as a tool for economic and human
development: the entrepreneur who contributes to
increasing wealth;
– Human development as a tool to increase quality of
life and to stimulate entrepreneurship: public policies
that contribute to increased wealth via human
development and / or entrepreneurship.