Essays on Entrepreneurship

Essays on Entrepreneurship

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.

Entrepreneurship essay 300 words

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:

  • ability to organize and manage production;
  • proactive, innovative activity;
  • risky activity.

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:

  • Proactive activity.
  • Innovative activity.
  • Activities for the organization and management of production.
  • Risky activity.
  • Getting entrepreneurial income.

Entrepreneurship essay 500 words

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:

  • the process of creating a new one with value;
  • a process involving the assumption of financial, moral and social responsibility;
  • a process that results in cash income and personal satisfaction.

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:

  • production of goods and services;
  • Receiving a profit;
  • social goals;
  • business development.

The role of entrepreneurship in the production of goods and services is realized through its functions:

  • Resource - a combination of factors of production.
  • Organizational - decision making.
  • Creative - the introduction of innovations.
  • Risk bearing.
  • Providing a tendency towards equilibrium.
  • Common traits of entrepreneurs:
  • the need for scientific and technological achievements, preference, to be personally responsible for solving problems, goals set and for achieving these goals by their own efforts;
  • propensity (average) to take risks;
  • the need for leadership;
  • belief in the ability to influence the course of events.
  • Economic benefits of entrepreneurship existence:
  • Increasing the production capability curve or changing its slope.
  • Creation of new products, services.
  • Achieving balance (in conjunction with other balance factors).
  • Growth of national wealth.

The types of entrepreneurship differ in the areas of entrepreneurial activity:

  • industrial entrepreneurship;
  • commercial entrepreneurship;
  • financial entrepreneurship;
  • innovative entrepreneurship.

Entrepreneurship essay 1000 words

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.

Read more
We've found 346 essays on Entrepreneurship
Rationalization of Financial Data by Entrepreneurs

Regardless of whether one is an enthusiastic and conferred entrepreneur, investing hours diving into the detail of your organization’s monetary execution may sound unappealing. However, organizations are settled on and broken on the choices that are made (Forges ; Iehlé, 2012). Accordingly, how to utilize …

Words 2377
Pages 10
Entrepreneurial Management & Innovation at WIPRO

Introduction to the organization Wipro was founded in 1945 in India and is currently diversified from producing vanaspati oil during its initial set up to Information technology, consumer care, lighting, engineering and health care sectors. The company has a long history of budding from independent …

Words 3136
Pages 13
Employability and Entrepreneurship

1. INTRODUCTION Employability is the combination of factors and processes that enable people to progress towards or get into employment, to stay in employment and to move in the workplace. The purpose of this report is to discuss the opportunities I as a graduate go …

Words 2121
Pages 9
Haven’t found the relevant content? Hire a subject expert to help you with
Essays on Entrepreneurship
$35.80 for a 2-page paper
get custom paper
Identify and discuss how entrepreneurs can impact on the economy

Introduction Definition of entrepreneurship There are a lot of explanations and descriptions of entrepreneurship. Intellectuals and business experts, define entrepreneurship as only the uniting of thoughts, hard work, and modifications to the changing commerce market. It furthermore involves meeting market demands; mainly it portrays the …

Words 1636
Pages 7
Literature review on entrepreneurial finance

Introduction – Research Proposal Although it appears to be contentious whether availability of finance impacts on entrepreneurial entry to markets (Kim et al., 2006, p. 5), it is likely to be a critical factor in determining the early success or failure of any new start-up …

Words 1698
Pages 7
Prospects for student Entrepreneurship

Entrepreneurship is acquiring impetus as a influential instrument for exhilarating economic growth in the country. This is a commanding educational means of training business professionals regardless of whether they started a new venture or not. Entrepreneurs see business in a more holistic way than do …

Words 1131
Pages 5
Entrepreneurship Critical Essay

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 …

Words 4060
Pages 17
Entrepreneurship And Special Interest Tourism

Abstract Special Interest Tourism (SIT) has in the recent years been the focus of attention of tourism development. SIT has come to be recognized as a key contributor to the growth of the tourism sector. In the UK, research indicate that over one-third of British …

Words 3094
Pages 13
Advances in mobile phone app development and their relevance for social entrepreneurs

Abstract This prevalent business atmosphere is characterized by speedy innovation and dispersion of new information technologies (Bruin and Dupuis, 2003). Through these technologies, entrepreneurial opportunities have been widely increased. These technologies provide a “communication medium that allows, for the first time, the communication of many …

EntrepreneurMobile Phone
Words 2509
Pages 11
Microfinance, Entrepreneurship and Sustainability

Introduction Theoretical Framework According to the Asian Development Bank (ADB), Microfinance can be defined as “the provision of a broad range of financial services such as deposits, loans, payment services, money transfers, and insurance to the poor and low-income households and their microenterprises” (ADB, 2000). …

Words 3497
Pages 14
Angel Investor – a Real Angel to Budding Entrepreneur

It is unlikely that not too many have heard of Angel investing in India. For starters, the monies involved are nowhere near as large as in VC or PE invests. Nor are the companies themselves large. And most angels are individual entrepreneurs themselves who have …

Words 3814
Pages 16
What Is the Role of Innovation In Entrepreneurship?

Abstract Research Aim: This aim of this study was to explore the role of innovation in the context of entrepreneurship. The main investigated areas were related to the key factors that affect the development of innovation. Furthermore, this research was focused on the exploration of …

Words 3388
Pages 14
Organizational Entrepreneurship

Introduction There was a time when only a few companies use to sell either similar or same products or services in any particular market. The demands of potential customers were rarely sophisticated and the product life cycles were relatively long. This was true for most …

Words 2914
Pages 12
Entrepreneurial Business Plan: Learning Disability Service

Introduction There are those who seek out opportunities from the very situations where others fear chaos or are lost in confusion. These individuals often act as catalysts to bring about a change that reshapes a market place. They are thought of as Olympic athletes who …

DisabilityEntrepreneurLearningService Learning
Words 2106
Pages 9
Entrepreneurship And Business Skills

Question 1 I consider an entrepreneurial individual to be a person that exercises initiative through organizing a venture with the aim of taking benefit of the opportunity presented. In addition, this individual is not afraid to make decisions regarding their venture and always accepts full …

Words 1677
Pages 7

Save time and let our verified experts help you.

Hire verified expert