entrepreneurship

 

  • [37] Entrepreneurship employs what Schumpeter called the “gale of creative destruction”[38] to replace in whole or in part inferior offerings across markets and industries,
    simultaneously creating new products and new business models,[citation needed] thus creative destruction is largely[quantify] responsible for long-term economic growth.

  • More narrow definitions have described entrepreneurship as the process of designing, launching and running a new business, often similar to a small business, or (per Business
    Dictionary) as the “capacity and willingness to develop, organize and manage a business venture along with any of its risks to make a profit”.

  • Entrepreneurical opportunities[edit] The exploitation of entrepreneurial opportunities may include:[15] • Developing a business plan • Hiring human resources • Acquiring financial
    and material resources • Providing leadership • Being responsible for both the venture’s success or failure • Risk aversion The economist Joseph Schumpeter (1883–1950) saw the role of the entrepreneur in the economy as “creative destruction”,
    Which he defined as launching innovations that simultaneously destroy old industries while ushering in new industries and approaches.

  • Scholars interested in nascent entrepreneurship tend to focus less on the single act of opportunity exploitation and more on the series of actions in new venture emergence,[92][95][94]
    Indeed, nascent entrepreneurs undertake numerous entrepreneurial activities, including actions that make their businesses more concrete to themselves and others.

  • [63] The inclusion of religion may transform entrepreneurship including a focus on opportunities other than profit as well as practices, processes and purpose of entrepreneurship.

  • For instance, nascent entrepreneurs often look for and purchase facilities and equipment; seek and obtain financial backing, form legal entities, organize teams; and dedicate
    all their time and energy to their business[96] Project-based[edit] Project entrepreneurs are individuals who are engaged in the repeated assembly or creation of temporary organizations.

  • Some have argued that entrepreneurs should be considered “skilled cultural operators”[53] that use stories to build legitimacy, and seize market opportunities and new capital.

  • In the 2000s, entrepreneurship was extended from its origins in for-profit businesses to include social entrepreneurship, in which business goals are sought alongside social,
    environmental or humanitarian goals and even the concept of the political entrepreneur.

  • Participating in a new business creation is a common activity among U.S. workers over the course of their careers”.

  • She mentions that in modern organizations, human resources need to be combined to better capture and create business opportunities.

  • Entrepreneurship employs what Schumpeter called “the gale of creative destruction” to replace in whole or in part inferior innovations across markets and industries, simultaneously
    creating new products, including new business models.

  • [19] The term has also been used to discuss how people might use these opportunities to develop new products or services, launch new firms or industries, and create wealth.

  • Another type of project entrepreneurship involves entrepreneurs working with business students to get analytical work done on their ideas.

  • [5] In this sense, entrepreneurship describes activities on the part of both established firms and new businesses.

  • Despite Schumpeter’s early 20th-century contributions, traditional microeconomic theory did not formally consider the entrepreneur in its theoretical frameworks (instead of
    assuming that resources would find each other through a price system).

  • [28][30] Jean-Baptiste Say also identified entrepreneurs as a driver for economic development, emphasizing their role as one of the collecting factors of production allocating
    resources from less to fields that are more productive.

  • A project entrepreneur who used a certain approach and team for one project may have to modify the business model or team for a subsequent project.

  • [101] For-profit entrepreneurs typically measure performance using business metrics like profit, revenues and increases in stock prices, but social entrepreneurs are either
    non-profits or blend for-profit goals with generating a positive “return to society” and therefore must use different metrics.

  • [1] The process of setting up a business is known as “entrepreneurship”.

  • “[104] It is part of a larger trend of business schools seeking to incorporate environmental topics more actively into their curricula.

  • [99] Indeed, project-based entrepreneurs face two critical challenges that invariably characterize the creation of a new venture: locating the right opportunity to launch
    the project venture and assembling the most appropriate team to exploit that opportunity.

  • Entrepreneurship is the creation or extraction of economic value in ways that generally entail beyond the minimal amount of risk (assumed by a traditional business), and potentially
    involving values besides simply economic ones.

  • Perspectives on entrepreneurship In the 21st century the governments of nation states have tried to promote entrepreneurship, as well as enterprise culture, in the hope that
    it would improve or stimulate economic growth and competition.

  • [44] Entrepreneurs are leaders willing to take risk and exercise initiative, taking advantage of market opportunities by planning, organizing and deploying resources,[45]
    often by innovating to create new or improving existing products or services.

  • [71] The sociologist Paul DiMaggio (1988:14) has expanded this view to say that “new institutions arise when organized actors with sufficient resources [institutional entrepreneurs]
    see in them an opportunity to realize interests that they value highly”.

  • Resolving the second challenge requires assembling a collaborative team that has to fit well with the particular challenges of the project and has to function almost immediately
    to reduce the risk that performance might be adversely affected.

  • In their book The Business of Culture (2015), Rea and Volland identify three types of cultural entrepreneur: “cultural personalities”, defined as “individuals who buil[d]
    their own personal brand of creativity as a cultural authority and leverage it to create and sustain various cultural enterprises”; “tycoons”, defined as “entrepreneurs who buil[d] substantial clout in the cultural sphere by forging synergies
    between their industrial, cultural, political, and philanthropic interests”; and “collective enterprises”, organizations which may engage in cultural production for profit or not-for-profit purposes.

  • bank loans, venture capital financing, angel investing and government and private foundation grants)[18][need quotation to verify] In the 2000s, usage of the term “entrepreneurship”
    expanded to include how and why some individuals (or teams) identify opportunities, evaluate them as viable, and then decide to exploit them.

  • Nascent entrepreneurship that emphasizes the series of activities involved in new venture emergence,[92][93][94] rather than the solitary act of exploiting an opportunity.

  • In contrast, entrepreneurial ventures offer an innovative product, process or service and the entrepreneur typically aims to scale up the company by adding employees, seeking
    international sales and so on, a process which is financed by venture capital and angel investments.

  • The entrepreneur is willing to put his or her career and financial security on the line and take risks in the name of an idea, spending time as well as capital on an uncertain
    venture.

  • Millennial business owners are well-equipped with knowledge of new technology and new business models and have a strong grasp of its business applications.

  • Regardless of the firm size, big or small, it can take part in entrepreneurship opportunities.

  • [85][86][87] Its prescience and value cannot be confirmed ex ante but only gradually, in the context of the actions that the nascent entrepreneur undertakes towards establishing
    the venture as described in Saras Sarasvathy’s theory of Effectuation,[88] Ultimately, these actions can lead to a path that the nascent entrepreneur deems no longer attractive or feasible, or result in the emergence of a (viable) business.

  • While entrepreneurship offers these groups many opportunities for economic advancement, self-employment and business ownership in the U.S. remain unevenly distributed along
    racial/ethnic lines.

  • Such research will help separate entrepreneurial action into its basic sub-activities and elucidate the inter-relationships between activities, between an activity (or sequence
    of activities) and an individual’s motivation to form an opportunity belief, and between an activity (or sequence of activities) and the knowledge needed to form an opportunity belief.

  • Main article: Social entrepreneurship Social entrepreneurship is the use of the by start up companies and other entrepreneurs to develop, fund and implement solutions to social,
    cultural, or environmental issues.

  • Feminist entrepreneurs are motivated to enter commercial markets by desire to create wealth and social change, based on the ethics of cooperation, equality and mutual respect.

  • Resolving the first challenge requires project-entrepreneurs to access an extensive range of information needed to seize new investment opportunities.

  • At times, profit-making social enterprises may be established to support the social or cultural goals of the organization but not as an end in itself.

  • [98] What makes project-entrepreneurs distinctive from a theoretical standpoint is that they have to “rewire” these temporary ventures and modify them to suit the needs of
    new project opportunities that emerge.

  • [58] A long tradition of academic research explores the experiences and strategies of ethnic entrepreneurs as they strive to integrate economically into mainstream U.S. or
    European society.

  • In the early 19th century, the French economist Jean-Baptiste Say provided a broad definition of entrepreneurship, saying that it “shifts economic resources out of an area
    of lower and into an area of higher productivity and greater yield”.

  • Successful entrepreneurs have the ability to lead a business in a positive direction by proper planning, to adapt to changing environments and understand their own strengths
    and weaknesses.

  • [48] Many organizations exist to support would-be entrepreneurs, including specialized government agencies, business incubators (which may be for-profit, non-profit, or operated
    by a college or university), science parks and non-governmental organizations, which include a range of organizations including not-for-profits, charities, foundations and business advocacy groups (e.g.

  • [21] Entrepreneurs exhibit positive biases towards finding new possibilities and seeing unmet market needs, and a tendency towards risk-taking that makes them more likely
    to exploit business opportunities.

  • For Schumpeter, entrepreneurship resulted in new industries and in new combinations of currently existing inputs.

  • [36] According to Schumpeter, an entrepreneur is willing and able to convert a new idea or invention into a successful innovation.

  • [citation needed] According to Paul Reynolds, founder of the Global Entrepreneurship Monitor, “by the time they reach their retirement years, half of all working men in the
    United States probably have a period of self-employment of one or more years; one in four may have engaged in self-employment for six or more years.

  • [100] This concept may be applied to a variety of organizations with different sizes, aims, and beliefs.

  • [32] In the Ashanti Empire, successful entrepreneurs who accumulated large wealth and men as well as distinguished themselves through heroic deeds were awarded social and
    political recognition by being called “Abirempon” which means big men.

  • Social entrepreneurship typically attempts to further broad social, cultural, and environmental goals often associated with the voluntary sector[102] in areas such as poverty
    alleviation, health care[103] and community development.

  • Entrepreneurship ranges in scale from solo, part-time projects to large-scale undertakings that involve a team and which may create many jobs.

  • Entrepreneurship within an existing firm or large organization has been referred to as intrapreneurship and may include corporate ventures where large entities “spin-off”
    subsidiary organizations.

  • Entrepreneurship is the process by which either an individual or a team identifies a business opportunity and acquires and deploys the necessary resources required for its
    exploitation.

  • Many small businesses are sole proprietor operations consisting solely of the owner—or they have a small number of employees—and many of these small businesses offer an existing
    product, process or service and they do not aim at growth.

  • [2] The people who create these businesses are often referred to as “entrepreneurs”.

  • [46] In the 2000s, the term “entrepreneurship” has been extended to include a specific mindset resulting in entrepreneurial initiatives, e.g.

  • a possibility to introduce new services or products, serve new markets, or develop more efficient production methods in a profitable manner.

  • [28][29] Cantillon emphasized the willingness of the entrepreneur to assume the risk and to deal with uncertainty, thus he drew attention to the function of the entrepreneur
    and distinguished between the function of the entrepreneur and the owner who provided the money.

  • There have been many breakthrough businesses that have come from millennial entrepreneurs such as Mark Zuckerberg, who created Facebook.

  • However, entrepreneurs often do not believe that they have taken an enormous amount of risks because they do not perceive the level of uncertainty to be as high as other people
    do.

  • Beginning in 2008, an annual “Global Entrepreneurship Week” event aimed at “exposing people to the benefits of entrepreneurship” and getting them to “participate in entrepreneurial-related
    activities” was launched.[who?]

 

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