Entrepreneurship has traditionally been defined the process of designing, launching and running a new business, i.e. a startup company offering a product, process or service. It has been defined as the "...capacity and willingness to develop, organize, and manage a business venture along with any of its risks in order to make a profit." In the 2000s, the definition has been expanded to explain how and why some individuals (or teams) identify opportunities, evaluate them as viable, and then decide to exploit them, whereas others do not, and, in turn, how entrepreneurs use these opportunities to develop new products or services, firms, industries and to create wealth.
Traditionally, an entrepreneur has been defined as "a person who organizes and manages any enterprise, especially a business, usually with considerable initiative and risk." "[R]ather than working as an employee, [an entrepreneur] runs a small business and assumes all the risk and reward of a given business venture, idea, or good or service offered for sale. The entrepreneur is commonly seen as a business leader and innovator of new ideas and business processes." Entrepreneurs tend to be good at perceiving new business opportunities and they often exhibit positive biases in their perception (i.e., a bias towards finding new possibilities and seeing unmet market needs) and a pro-risk-taking attitude that makes them more likely to exploit the opportunity."Entrepreneurial spirit is characterized by innovation and risk-taking."Entrepreneurial behavior can be seen in small and large firms, new and established firms and in for-profit and not-for-profit organizations, including charities and government. For example, in the 2000s, the field of social entrepreneurship has been identified, in which entrepreneurs combine business activities with humanitarian, environmental or community goals.
An entrepreneur is typically in control of a commercial undertaking, directing the factors of production–the human, financial and production resources–that are required to exploit a business opportunity. They act as the manager and oversee the launch and growth of an enterprise. Entrepreneurship is the process by which an individual (or group) identify a business opportunity and acquire and deploy the necessary resources required for its exploitation. The exploitation of entrepreneurial opportunities may include actions such as developing a business plan, hiring the human resources, acquiring financial and other required resources, providing leadership, and being responsible for the venture's success or failure.Joseph Schumpeter (1883–1950) stated that the role of the entrepreneur is “creative destruction” and the changes and “dynamic disequilibrium brought on by the innovating entrepreneur ... is the ‘norm’ of a healthy economy.”
Entrepreneurship typically operates within an entrepreneurship ecosystem which often includes government programs and services that promote entrepreneurship and support entrepreneurs and start-ups, non-governmental organizations such as small business associations or organizations that offer advice and mentoring to entrepreneurs (e.g., through entrepreneurship centres or websites), business advocacy organizations that lobby the government for increased support for entrepreneurship programs and more business-friendly laws and regulations; entrepreneurship resources (e.g., business incubators and seed accelerators); entrepreneurship education and training programs offered by schools, colleges and universities; and financing (e.g., loans, venture capital financing, angel investing, and grants). The strongest entrepreneurship ecosystems are those found in top entrepreneurship hubs such as Silicon Valley, New York City, Boston, Singapore and other such locations where there are clusters of high-tech firms, top research universities, and venture capitalists.In the 2010s, entrepreneurship can be studied in college or university as part of the disciplines of management or business administration.
C# Corner. All contents are copyright of their authors.