To some economists, the entrepreneur is one who is willing to bear the risk of a new venture if there is a significant chance for profit. Others emphasize the entrepreneur's role as an innovator who markets his innovation. Still other economists say that entrepreneurs develop new goods or processes that the market demands and are not currently being supplied.
In the 20th century, economist Joseph Compete (1883-1950) focused on how the entrepreneur's drive for innovation and improvement creates upheaval and change. Compete viewed entrepreneurship as a force of "creative destruction." The entrepreneur carries out "new combinations," thereby helping render old industries obsolete. Established ways of doing business are destroyed by the creation of new and better ways to do them.
Business expert Peter Drunker (1909-2005) took this idea further, describing the entrepreneur as someone who actually searches for change, responds to it, and exploits change as an opportunity. A quick look at changes in communications – from typewriters to personal computers to the Internet – illustrates these ideas.
Most economists today agree that entrepreneurship is a necessary ingredient for stimulating economic growth and employment opportunities in all societies. In the developing world, successful small businesses are the primary engines of job creation, income growth, and poverty reduction. Therefore, government support for entrepreneurship is a crucial strategy for economic development.
As the Business and Industry Advisory Committee to the Organization for Economic Cooperation and Development (OE CD) said in 2003, "Policies to foster entrepreneurship are essential to job creation and economic growth." Government officials can provide incentives that encourage entrepreneurs to risk attempting new ventures. Among these are laws to enforce property rights and to encourage a competitive market system.
The culture of a community also may influence how much entrepreneurship there is within it. Different levels of entrepreneurship may stem from cultural differences that make entrepreneurship more or less rewarding personally. A community that accords the highest status to those at the top of hierarchical organizations or those with professional expertise may discourage entrepreneurship. A culture or policy that accords high status to the "self-made" individual is more likely to encourage entrepreneurship.
This overview is the first in a series of one-page essays about the fundamental elements of entrepreneurship. Each paper combines the thinking of mainstream economic theorists with examples of practices that are common to entrepreneurship in many countries. The series attempts to answer: Why and how do people become entrepreneurs? Why is entrepreneurship beneficial to an economy? How can governments encourage entrepreneurship, and, with it, economic growth?
Entrepreneurship has been around for a long time and since its inception it has grown greatly in popularity due to the many opportunities it presents to creative and business-minded individuals. Entrepreneurship is a concept of self-fulfilling one's business dreams and aspirations. Most definitions of entrepreneurship state that it is the starting of an organization to put into action one's business plans, by utilizing the available and very limited resources at one's disposal.
However, not anyone is cut out to become an entrepreneur. Leadership skills, and especially self discipline, are must-have characteristics of a successful entrepreneur. Someone who not only has viable and profitable business ideas, but also the know-how and personal drive and ambition to implement those ideas, can become successful at entrepreneurship.
In the end, though, the most highly required quality of any entrepreneur is that of a risk-taker. Any business venture is a risk, no matter how small or big, and start-up organizations are at the greatest risk of failure. A good entrepreneur is confident enough of his or her plans to take that risk and proceed.
The concept of entrepreneurship involves the consideration of a number of opportunities to enhance employee performance and business profits. The entrepreneur is expected to imply strategic planning to assess if the opportunities provided for growth are worthwhile and how they could be successfully exploited. Strategic planning is an essential part of the concept of entrepreneurship and effective application helps to ensure successful operation. It is a useful tool within the sphere of influence of entrepreneurship and serves a niche market for improving on the business performance. The concept of entrepreneurship involves the owner taking absolute responsibility of empowering the employees and in turn, affecting sales and profitability of the business.
For example, one researcher noticed that corporate innovation is a very vast concept that includes generations, expansion, and completion of new ideas.
An innovation can be anything it might be:
A new product or service,
An administrative system, or
A new plan or program pertaining to organizational members.
In this context, corporate entrepreneurship centers on reenergizing and enhancing the firm's ability to acquire innovative skills and potential.
A systematic analysis of the entrepreneurship on construct and its dimensions, recent research are now able to define corporate entrepreneurship as a process whereby an individual or a group of individuals, in association with an existing organization, crates a new organization or instigates renewal or innovation within the organization.
According to this definition tactical regeneration (concerned with organizational renewal involving major strategic and/or structural changes), innovation (concerned with introducing something new to the marketplace), and corporate venturing (corporate entrepreneurial efforts that lead to the creation of new business organizations within the corporate organization) are all important and lawful parts of the commercial entrepreneurship process.
Asesh Kumar Chatterjee,
Ex General Manager, Dept of M&SSE
Entrepreneurship is the quest for circumstance past assets controlled. It is also said that a business person or an entrepreneur is an individual who begins a business and is eager to chance misfortune so as to make the profits.
The Succession Planning for Business Owners is very important and to fix the aim where to reach at the end. Business enterprise is one of the most significant contribution to the financial advancement of a nation. The business visionary goes about as a trigger head to offer flash to financial exercises by the pioneering choices. A business visionary supplies chance capital as a daring person, and screens and controls the business exercises.
The significant targets of the Entrepreneurship Development Programs (EDPs) are to:
1. Create and fortify the pioneering quality, for example inspiration or requirement for accomplishment.
2. Enterprise is significant as it can improve ways of life and make riches, for the business visionaries, yet in addition for related organizations.
3. Business people additionally assist drive with changing with advancement, where better than ever items empower new markets to be created.