Entrepreneurship in Business Three Definitions of an Entrepreneur

Entrepreneurship in Business

Three Definitions of an Entrepreneur In almost all of the definitions of entrepreneurship, there is agreement that we are talking about a kind of behavior that includes: Initiative taking Organizing and reorganizing of social and economic mechanisms to turn resources and situations to practical account Accepting of risk or failure

Three Perspectives towards an Entrepreneur To an economist: one who brings resources, labor, materials, and other assets into combinations that make their value greater than before, and also one who introduces changes, innovations, and a new order.

Three Perspectives towards an Entrepreneur (Cont. ) To a psychologist: one who is typically driven by certain forces -the needs to obtain or attain something, to experiment, to accomplish, or perhaps to escape the authority of others.

Three Perspectives towards an Entrepreneur (Cont. ) To one businessman: one who appears as a threat, an aggressive competitor, whereas to another businessman the same entrepreneur may be an ally, a source of supply, a customer, or someone who creates wealth for others, as well as finds better ways to utilize resources, reduce waste, and produce jobs others are glad to get.

What is Entrepreneurship? • Creation as entrepreneurship – Entrepreneurship involves the creation process— creating something new of value. – The creation has to have value to the entrepreneur and value to the audience for which it is developed. – This audience can be: • The market of buyers for business innovation • The hospital’s administration for a new admitting procedure and software • Prospective students for a new course or even college of entrepreneurship

What is Entrepreneurship? (Cont. ) • Devotion as entrepreneurship – Entrepreneurship requires the devotion of the necessary time and effort. – Only those going through the entrepreneurial process appreciate the significant amount of time and effort it takes to create something new and make it operational.

What is Entrepreneurship? (Cont. ) • Necessary risks as entrepreneurship – These risks take a variety of forms, depending on the field of effort of the entrepreneur, but usually center around financial, psychological, and social areas. • Rewards as entrepreneurship – The most important of these rewards is independence, followed by personal satisfaction. – For profit entrepreneurs, money becomes the indicator of the degree of success.

Entrepreneurship vs. Small Business • Many people use the terms "entrepreneur" and "small business owner" synonymously. • While they may have much in common, there are significant differences between the entrepreneurial venture and the small business. • Entrepreneurial ventures differ from small businesses in these ways: – – Amount of wealth creation Speed of wealth creation Risk Innovation

Entrepreneurship vs. Small Business (Cont. ) • Amount of wealth creation - rather than simply generating an income stream that replaces traditional employment, a successful entrepreneurial venture creates substantial wealth, typically in excess of several million dollars of profit.

Entrepreneurship vs. Small Business (Cont. ) • Speed of wealth creation - while a successful small business can generate several million dollars of profit over a lifetime, entrepreneurial wealth creation often is rapid; for example, within 5 years.

Entrepreneurship vs. Small Business (Cont. ) • Risk - the risk of an entrepreneurial venture must be high; otherwise, with the incentive of sure profits many entrepreneurs would be pursuing the idea and the opportunity no longer would exist.

Entrepreneurship vs. Small Business (Cont. ) • Innovation - entrepreneurship often involves substantial innovation beyond what a small business might exhibit. – This innovation gives the venture the competitive advantage that results in wealth creation. – The innovation may be in the product or service itself, or in the business processes used to deliver it.

Entrepreneurial Characteristics • Self-Control Entrepreneurs do not function well in structured organizations and do not like someone having authority over them. • Self-Confidence Entrepreneurs are selfconfident when they are in control of what they're doing and working alone.

Entrepreneurial Characteristics • Sense of Urgency Entrepreneurs have a never-ending sense of urgency to develop their ideas. • Comprehensive Awareness Successful entrepreneurs can comprehend complex situations that may include planning, making strategic decisions, and working on multiple business ideas simultaneously.

Entrepreneurial Characteristics • Realism Entrepreneurs accept things as they are and deal with them accordingly. • Conceptual Ability Entrepreneurs possess the ability to identify relationships quickly in the midst of complex situations.

Entrepreneurial Characteristics • Status Requirements Entrepreneurs find satisfaction in symbols of success that are external to themselves. • Interpersonal Relationships Entrepreneurs are more concerned with people's accomplishments than with their feelings.

Entrepreneurial Characteristics • Emotional Stability Entrepreneurs have a considerable amount of self-control and can handle business pressures. • Who is an Entrepreneur? - Education - Medicine - Research - Architecture - Law - Engineering - Religion - Art - Science - Government - Politics - Social work - Agriculture - Entertainment - Sport - Distribution - Business - etc.