Entrepreneurship is an initiative activity of economic entities associated with the innovative use of property, money and other resources in order to achieve commercial and other success based on a combination of personal benefit with public benefit. In the field of tourism activities, entrepreneurship is largely associated with the provision of services. Business entities (entrepreneurs) can be both individual individuals acting on their own behalf and under their own property responsibility, and associations of partners acting under the responsibility of a legal entity.
Two models of entrepreneurship are known: classical entrepreneurship and innovative entrepreneurship. Classic entrepreneurship is traditional, conservative entrepreneurship aimed at maximizing the return on resources while using traditional business practices to increase the profitability of an organization's activities and update the range of services. Innovative entrepreneurship is primarily associated with innovation in entrepreneurial activity.
The role of the entrepreneur is reduced to the creation of innovations that were not previously known, through the use of traditional economic factors, but through a new combination of them. Such innovative activities, as a rule, produce more tangible results than traditional entrepreneurship, but it places special demands on the entrepreneur. For the successful organization of a profitable business in modern conditions, an entrepreneur must have good professional training, the necessary knowledge in the field of economics, politics, psychology, jurisprudence, organization of production of products and services, and also be able to cooperate with scientists, marketing specialists, capital owners. An entrepreneur's success depends on the conditions in which he operates.
The theory of entrepreneurship has evolved with the development of the human economic activity. The first entrepreneurial theorist was Richard Cantillon, whose work dates back to the early 18th century. He first drew attention to the supply and demand discrepancies and market imbalances that allow individuals to generate speculative income. He noted the risky activities of such people, the flexibility of their economic behavior, the non-standard of the decisions made.
Adam Smith saw an entrepreneur as a person who uses the owner's capital to generate income. Jean Baptiste Say described the entrepreneur as follows: "The entrepreneur moves economic resources from a region with a lower to an area with higher productivity and efficiency."
At the end of the 19th century, the concepts of "entrepreneur" and "owner of capital" were separated. During this period, a great contribution to the development of the theory of entrepreneurship was made by J.A. Schumpeter. In his work "Theory of Economic Development", he considered the economic system not as a passive process of circulation of funds, but as a constantly developing dynamic system. This development is based on new combinations of factors of production. It is up to the entrepreneur to carry out these combinations.
In modern interpretations of entrepreneurship, the following features are distinguished:
The most complete modern definition of entrepreneurship is given by Hizrech and Peters in their book Entrepreneurship. A similar definition of entrepreneurship is given by Studdart in Keys to the World of Business. In general, the compiled definition looks like this: "Entrepreneurship is an innovative initiative activity of subjects of a property aimed at creating economic and organizational conditions for the production of material goods and services and making a profit."
Thus, the main features of entrepreneurship are:
Entrepreneurship is a proactive, innovative activity of economic entities that take risks, aimed at making a profit.
An employee carries out the physical process of using someone else's property (machine, machine, computer) for the direct production of goods and services. The difference between an entrepreneur and an employee is that he is entrusted with the use of the joint property - the firm - with all the resulting responsibility.
Entrepreneurship is:
Effective entrepreneurial activity is possible only in conditions of personal freedom of the entrepreneur and a competitive market. The development of entrepreneurship leads to the growth of national wealth and the well-being of the nation.
The entrepreneur is an entrepreneur. An entrepreneur is not necessarily an owner. Lee Iacocca, the president of Chrysler, who gave it a dominant position in the market, was not the owner of the company. Therefore, the entrepreneur is the owner, manager, or any person who undertakes to organize a business at his own peril and risk.
But if the owner can be passive, then the entrepreneur is active, acts as an independent market agent, acting at his own peril and risk and bearing property responsibility. A manager is an employee who organizes the fulfillment of the entrepreneur's goals. It is necessary to distinguish between owner and manager - these are two completely different roles. They have different goals. The main motive of a manager is building his own career, not necessarily within the framework of one particular business. It is important for the owner to build up capital. The owner is tied to the growth in the value of the business. The value of a manager is determined by how much money he brought to his owner, how effective he is as a manager, and not by what he personally took possession of.
Entrepreneur's goals:
The role of entrepreneurship in the production of goods and services is realized through its functions:
The types of entrepreneurship differ in the areas of entrepreneurial activity:
Entrepreneurship is the subject of many disciplines. Hence the multiplicity of his interpretations and definitions. The essence of entrepreneurship, as an economic category, is determined by its nature and features like a specific type of economic behavior, the ability of business entities to respond to a potential source of profit.
Entrepreneurship is a proactive, business-risk-based activity aimed at finding the best use of resources for the purpose of generating income and increasing property.
By its economic nature, entrepreneurship is inextricably linked with the market economy and is its product. As a property of economic activity, it externally manifests itself in the desire to extract additional benefits in the exchange process. Meanwhile, the exchange itself is not yet a source of entrepreneurship. It becomes such when it turns into an integral part of a single economic turnover, and production for exchange becomes the defining function of economic entities. Commodity production is historically and genetically the starting point of entrepreneurship. Exchange, firstly, stimulates the search for new opportunities, i.e. initiative. Secondly, it is in the process of exchange that the entrepreneur sees the source of the possible benefit, which is both a motive and an assessment of the success of his initiative. Thirdly, when faced in the exchange process with persons similar to himself, the entrepreneur perceives his activities as competitive. Fourth, as a mechanism for meeting social needs, exchange determines the social nature of the entrepreneurial activity.
The economic nature of entrepreneurship is characterized through its characteristics: initiative, commercial risk and responsibility, a combination of factors of production, innovation.
Entrepreneurship is an initiative activity. The constant desire to search for something new, whether it is the production of new goods or the development of new markets, in a word, the search for new opportunities for deriving profit is the hallmark of an entrepreneur. The entrepreneurial initiative is a desire to realize the opportunities provided by the process of market exchange itself, carried out to the mutual benefit of the participants in this process. Entrepreneurship should not be associated with deception and violence, but with the extraction of profit through the satisfaction of social needs - with the "spirit of non-violent acquisition."
Although the initiative is a property of human nature, its manifestation as a functional feature of entrepreneurial activity is due to the very nature of the market economy. When initiating their endeavors, any entrepreneur undoubtedly relies on the possession of certain advantages that give him confidence in success. Such advantages can be derived from the market environment itself, for example, due to information asymmetries. Individuals with more information receive certain advantages, which gives rise to the initiative as a desire to use them to their own advantage.
Being public in nature, entrepreneurial activity is aimed at meeting social needs. But the entrepreneur does not take on the property risk out of charitable motives. Material interest expressed in income is an incentive for entrepreneurial activity. It should be borne in mind, however, that not all income is the result of entrepreneurship. It acts as such only when it appears to be the result of a better use of the factors of production. Therefore, various kinds of rental income, interest on capital cannot be considered as income from entrepreneurship. In reality, entrepreneurial income is presented in the form of economic profit, which is a direct form of entrepreneurship motivation. What is the purpose of an entrepreneur?
Since the hypothesis of the entrepreneur's desire to maximize his profit was introduced into scientific circulation, it has been subjected to various kinds of criticism more than once. The fact is that with the increasing complexity of the hierarchical organization of firms, there was a dispersal of the functional characteristics of entrepreneurship among the participants in the entrepreneurial process. The goal is formed already under the influence of the interests of representatives of various parties involved in the implementation of the entrepreneurial function, and cannot be expressed in terms of maximization. On the other hand, an entrepreneur cannot but react to external influences, adapting to changes in the market situation, which presupposes the specification and differentiation of target settings into short-term, medium-term and long-term ones. Ultimately, all this leads to the modification of the entrepreneur's target aspirations into management guidelines, whether it be sales growth or the development of a new market segment, achieving a leading position in the industry or the economic growth of the company.
This does not mean that profit is losing its role as a target for entrepreneurship. Although the target settings of firms can be different, and besides, they change under the influence of internal and external factors, any of them is acceptable under one indispensable condition - ensuring an acceptable rate of return. This limitation is not accidental and is due to the role that profit plays in the entire process of entrepreneurship. Profit is a source of income for an entrepreneur and the development of a company, serves as an indicator of the efficiency of resource use and an assessment of investment opportunities, and finally, an assessment of success and a psychological incentive. This suggests that even though it does not appear outwardly, profit, nevertheless, occupies a dominant place in the hierarchy of the entrepreneur's goals.
Thus, as a business executive, an entrepreneur strives to ensure stable conditions for the implementation and development of his entrepreneurial function. From this side, its task is to balance the multidirectional forces that make it possible to effectively carry out the entrepreneurial function in the long term. At the same time, realizing the function of the owner, he must ensure the greatest profitability from the resources used, expressed in maximizing profits. The resolution of this contradiction can take a variety of forms, but they all ultimately boil down to ensuring an acceptable rate of return. Profit satisfaction means nothing more than a compromise between the various aspects of the entrepreneurial function.
Different businessmen have different ways to build their own careers. When faced with the decision of what some of qualities of a successful businessman are, each person has his/her own opinion. From my point of view, I consider that common sense, specialized knowledge, and good …
This Chapter presents the conceptual framework of the study that determines the relationship of Entrepreneurial Management and Operation of Small Business in General Santos City. Conceptual Framework Despite the financial slump experienced everywhere, the wheels of our local economy continue to turn as our development …
Student Must Not Take Part in Politics Albert Einstein observed: “It is the duty of every citizen according to his best capacity to give validity to his conviction in political affairs. ” I’m sure, this pretty much sums up why we’re debating on this topic …
Lascelles Chin is founder, chairman and Chief executive officer of the Lasco Group of Companies in Jamaica. The Lasco group is made up of Lasco Distributors, Lasco Foods Successors Ltd, Lasco Foods Ltd, Lasco Barbados Ltd, Lasco Financial Services Limited and Lasco Remittance Services. The …
“Once More to the Lake,” by E.B White is a short story that provokes reflection by exploring familial relationships and the human relation to time. It narrates the tale of a man who spent his childhood summers with his family at a rented lake property …
Entrepreneurship firstly arise from Richard Cantillon’s Essai sur la Nature du Commerce en Général, originally refers to the behavior people aim to become an entrepreneur. Currently, it is an increasingly heated issue worldwide because its power on driving innovation, productivity, job creation and economic development …
Executive Summary Entrepreneurship is the recognition or creation of an opportunity, coupled with action by an individual or group of individuals, to form a social, intrapreneurial, lifestyle, middle-market, or highly-liquid venture. Venkataraman (1997) explains entrepreneurship as the nexus of the presence of lucrative opportunities and …
INTRODUCTION The emergence of women entrepreneur & their contribution to the national economy is quite visible in India. Women have become aware of their existence, their rights & their work situations. The number of women entrepreneur has grown over a period especially in the 1990s. …
Questions for Chapter 6 True/False 1. A talented entrepreneur should be able to substitute for an experienced management team. (False) 2. The size of your organization is inversely correlated to the amount of revenue your business can derive (False) 3. Hiring a salesperson is more …
Information Management and Business Review Vol. 4, No. 1, pp. 30-34, Jan 2012 (ISSN 2220-3796) Impact of Culture on Entrepreneur Intention Syed Imran Sajjad1, *Haroon Shafi1, Aasim Munir Dad2 1Iqra university Islamabad campus 2University of Science and Technology (MUST) Mirpur Azad Kashmir, Pakistan *haroonshafi4@gmail. com …
Entrepreneurship is a risky activity which involves taking decisions in the face of uncertainty to reap certain rewards. This reward may vary from one person to the other depending on the need of the entrepreneur (Moschandreas, 1999). The rewards and benefits are the motivation behind …
The globalization process makes the option of utilizing entrepreneurial strategies and decisions to insure that a certain business would eventually succeed became fully realized (McDougall & Oviatt, 2000, p. 902). Following this argument, it can even be said that the fast globalization of the business …
Shark Tank is an American reality show produced by Mark Burnett. The show is about aspiring entrepreneurs bringing their business plan up in front of a panel of potential investors to see if they can sell their product to them and get the total investment …
Essay Outline Argument: I think that luck has a part in success, too. Support 1: People cannot choose where they are born or what type of family they will be born into. Support 2: Some people are lucky in the sense that they are in …
Introduction The theory our group will be discussing and explaining in depth is the leadership styles of top management using Mintzberg’s managerial roles. Mintzerg named ten different roles, all separated into three categories. The first category is interpersonal. This includes figurehead, leader, and liason. The …
Marketing is everywhere. Formally or informally, people and organizations engage in a vast number of activities that we could call marketing. Indian consumer today is economically far better off than his earlier generations. The coming years will bring full of high-return marketing opportunities. By closely …
The top 15 qualities needed to be an entrepreneur and the top 10 qualities needed to be a manager is listed as follows. This is a summary of the results yielded by the most popular search engine, Google. Not surprisingly most of the qualities needed …
In the light of the above examples we can see that Mintzberg’s Ten Management Roles are a complete set of behavior or roles within a business environment which are followed by most of these managers at every level. Each role is different, therefore spanning the …
Marketing is all about selling your offerings profitably while a marketing strategy is a line of action to achieve this goal . The big idea behind any product’s marketing is its marketing strategy. The following piece of writing comprises of a marketing strategy for a …
In the business map of the world, India has a place of prominence as a developing country and an emerging prosperous business location for coming years. Since its independence as a democratic country, India has witnessed many milestones in the history of its business. The …
EXECUTIVE SUMMARY In Bangladesh, a large number of women work in the informal sector, but the real value of their participation and contribution is not recognized in the society. Differences and inequalities between women and men exist in terms of opportunities, rights, and benefits. There …
Introduction Entrepreneurship is defined as the willingness or capacity that an individual or group of people have in developing, organizing and managing business ventures regardless of the risks that are involved (Kumar, 2008). Entrepreneurs are essentially individuals with excellent skills in presentation, generation of creative …
Introduction: The strength of the house depends on its foundation similarly for the survival of business in market its foundation plays a crucial role. A start-up can be defined as a newly created company looking for markets and investors. It’s very difficult to with stand …
Supply Chain Relation ships Wheatco Ltd and Chemco Ltd Case authors Marie koulif-Souviron, Alan Harrison and jaques Colin Introduction: This case is based on two US owned chemical corporations and both industry leader in their chosen activities with equal size. Also it is mentioned in …
Bangladesh is s developing country. Its per capita income is only $750 and per capita GDP is $684 and present GDP growth rate is 6%. Most of the people are living in the below of poverty line. Poverty as like as curse for our country. …
|SOUTHERN CROSS UNIVERSITY | ASSIGNMENT COVER SHEET For use with online submission of assignments Please complete all of the following details and then make this sheet the first page of each file of your assignment – do not send it as a separate document. Your …
With the rapid development of dynamic global economy, increasingly countries are seeking breakthroughs of their economy development. Stimulated by these ever-increasing competition pressures, exploitation of new ideas and businesses which are of great potential to thrive economies, accordingly, is gainning widespread attention (Mansfield, 1972; Wong …
Classic Entrepreneur Wants to innovate, grow big and make a lot of money. The classic entrepreneur is not interested in starting a business to give herself a job. If you want to start a company, make it profitable and sell it, then you are a …
Yes. All you have to do is to call the customer support service and ask “Can I withdraw money from a different bank?” They will assure the bank where you are going to withdraw money that you are an honest client. Write a check, and …
Steve Jobs nurtured a culture in the company that was compelled of secrecy, which inspired the employees to think differently and develop these products. (Kate, 2011) Innovation is one of the most important factors throughout the company as most of the products are designed to …
Save time and let our verified experts help you.
Hire writer