The Role of Entrepreneurship in the Future Economic Development of Taiwan

Abstract

Historically, entrepreneurship played a central role in the economic development of Taiwan.  Therefore small and medium sized enterprises are considered the backbone of the Taiwanese economy.  The purpose of this study is to define and 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.  The additional objective is 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 are based on the five observations; the first three observations show that there is 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 is only 30% in 2012 and export sales share is only 17.74% but on the social front, SMEs accommodate more than 79% of workforce in Taiwan.  These observations are combined to produce final statement of this research.