Entrepreneurship and Social Responsibility Research: A Double-edged Sword of Economic Welfare and Social Challenges

Abstract

It is widely accepted that successful entrepreneurs create both waves of innovation and prosperity and environmental and social challenges. Using economic theories such as Solow’s growth model, Schumpeter’s theory of economic development, and externality theory, this article will explore how the wealth creation and consumption of successful entrepreneurs drive innovation and economic growth, as well as the environmental, social, and financial challenges they bring, thereby providing a balanced analysis of how successful business people affect the world. The results suggest that successful business people can benefit society significantly when they consume wealth, such as creating jobs and promoting economic growth. However, making profits in some industries can lead to environmental degradation, and high-risk investments can exacerbate social inequalities. Therefore, the government needs to introduce a series of policies to mitigate the negative impact of entrepreneurs.