Fourth, the entrepreneurial process requires the organization of people and resources. Third, taking on a level of risk is a necessity. Second, entrepreneurship requires differences between people, such as preferential access to certain individuals or the ability to recognize information about opportunities.

First, there must be opportunities or situations to recombine resources to generate profit. There are four criteria for becoming an entrepreneur. Regardless of the firm size, big or small, it can take part in entrepreneurship opportunities. Entrepreneurs create something new and unique-they change or transmute value. 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'. 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. Entrepreneurs act as managers and oversee the launch and growth of an enterprise. JSTOR ( August 2021) ( Learn how and when to remove this template message)Įntrepreneurship is the act of being an entrepreneur, or the owner or manager of a business enterprise who, by risk and initiative, attempts to make profits.Unsourced material may be challenged and removed. Please help improve this article by adding citations to reliable sources in this section. This section needs additional citations for verification. This approach is sometimes referred to as the processual approach, or the contextual turn/approach to entrepreneurship.

Others deviate from the individualistic perspective to turn the spotlight on the entrepreneurial process and immerse in the interplay between agency and context. This is sometimes referred to as the functionalistic approach to entrepreneurship. These scholars tend to focus on what the entrepreneur does and what traits an entrepreneur has (see for example the text under the headings Elements below). Some view entrepreneurship as allocated to the entrepreneur. It has been studied within disciplines such as management, economics, sociology, and economic history. Īs an academic field, entrepreneurship accommodates different schools of thought. After the end of supply-side economics, entrepreneurship was supposed to boost the economy. 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.

In this sense, entrepreneurship describes activities on the part of both established firms and new businesses. In the field of economics, the term entrepreneur is used for an entity which has the ability to translate inventions or technologies into products and services. While definitions of entrepreneurship typically focus on the launching and running of businesses, due to the high risks involved in launching a start-up, a significant proportion of start-up businesses have to close due to 'lack of funding, bad business decisions, government policies, an economic crisis, a lack of market demand, or a combination of all of these.'

More narrow definitions have described entrepreneurship as the process of designing, launching and running a new business, which is often similar to a small business, or as the 'capacity and willingness to develop, organize and manage a business venture along with any of its risks to make a profit.' The people who create these businesses are often referred to as 'entrepreneurs'. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures.

The process of setting up a business is known as 'entrepreneurship'. With this definition, entrepreneurship is viewed as change, generally entailing risk beyond what is normally encountered in starting a business, which may include other values than simply economic ones.Īn entrepreneur is an individual who creates and/or invests in one or more businesses, bearing most of the risks and enjoying most of the rewards. Entrepreneurship is the creation or extraction of economic value.

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