A General Definition Of Entrepreneurship Business Essay

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During the 21st century, we have seen and witnessed the huge and significant changes in the words economy and the key that has led to such achievement is entrepreneur. These are the individual who take the risks and build the enterprises that employ people, bring innovation and new products to economy and serve as an incentive for others to try their luck and become successful in their life. But one question has emerged: Entrepreneur is born or made?. Even though there are many arguments surrounding this concern, I personally believe it is a combination of both. Can they be more successful with training? Absolutely! But can someone without the Gifts, Mindset, DNA or Passion be successful with the same training? Nope. What I think determines success in entrepreneurs is whether someone has a burning passion in their belly to make something of their lives regardless of genetics, education or training. There are examples all over the world of both types who come from great business genetics but who don't do anything grand in business, and then there are those who come up the ranks of poverty to create masterpieces. Therefore, my opinion is that for those who only reach their entrepreneurship level when they are expected to possesses those important factors which may come from inside or outside the environment.

II. Body Structure:

A. Entrepreneur is born or made:

1. Entrepreneur is born:

Entrepreneur has been playing a very important part to our growing economy in the 21st century. Over the past 10 to 15 years, Entrepreneurship training programs have been established with an effort to formulate the idea of teaching enthusiastic and desired people how to start their own business dream and identify their entrepreneurial potential. While certain competences such as creating and developing a business plan, marketing strategies or finding financial sources of funding can be taught, the basic background of entrepreneur is deeply imbedded in the personality characteristics of individual or in other words, entrepreneur is from inside the person(Pike & Helen ,2005).

One does not have to be a "born entrepreneur", but it certainly helps one to become more successful. According to (Tara,L.,2007), with inherent tendencies, more people likely to take risks, more being able to catch and act on seeable business opportunities and more open to new experiences. Individuals who do not possess these traits also can learn and develop them, but they will have to work harder than those for whom such traits come naturally.

In academic articles and his book, "Born Entrepreneurs, Born Leaders (Oxford University Press, 2010), Shane mentioned that 48 percent of those who tend to be an entrepreneur is "heritable," meaning that it is influenced by genetic factors. Other three professors of entrepreneurial studies at Case Western including Scott A. Shane, Tim and Lynn Cherkas have found the same result when they conducted behavioral genetics (twin) and molecular genetics (association) studies of entrepreneurship (Karen,E.,2010) From that, the trend to be an entrepreneur and personality traits such as extraversion, openness to experience, driven achievement, trying to seek business opportunities has a common genetic component.

For those who agree with statement that entrepreneur is born, according to them, attitude is the most important personal characteristic, and one that cannot be trained. The attitude of the entrepreneur affects a lot in the early success of their setting a business. In a larger extent, the same attitude of believing in the success and direction of one company will result in a great impact to the firm's employees (Scott A.,2009) .Thus, it is both the challenges and opportunities for creating a competitive advantage for the organization.

If attitude is the one that is inherent in a person and cannot be taught or trained, so does the desire to be an entrepreneur. There is another survey by Northeastern University's School of Technological Entrepreneurship, nearly two-thirds of entrepreneurs claim they were encouraged to start their own companies by their inborn desire and determination, rather than by their education or working experience (Leslie,T.,2006). While entrepreneurship skills can be taught, the survey results suggest that the desire to be an entrepreneur usually is not. Rather, as 42 percent of survey respondents said they launched their first venture they feel when they were still young and they felt as though the enterprising spirit is within the individual, not developed by the individual's experience (Leslie,T.,2006).

2. Entrepreneur is made:

In a contrast idea, Entrepreneurs are made and not born. No one will be an entrepreneur by birth; they are created and developed through their life. He may be born with some skills which may help him to become an entrepreneur. If someone is born to become an entrepreneur then why they should wait for 16 to 25 years to become a business men and why they have to take their education. So a person can get the qualities of an entrepreneur by birth but not enough to be an entrepreneur.

Does this mean that people born and growing up without a family history toward entrepreneurship should give up their dreams and stay a normal and simple life as others? Absolutely not. Anyone in anywhere has the opportunity to build up their own business as long as they have a passion, an attitude of never giving up, being patient that can complement their skill sets.

Moreover, the very personality traits that lead naturally to entrepreneurship can have negative sides. In reality, most entrepreneurs fail at what they try to achieve. They fail because they rely too heavily on their innate skills and not focused enough on learned skills (Aminal, K., 2012)

Other factors may be just as important as entrepreneurial traits, a survey from a business training program in at the University of Southern California presented that nearly 87 percent of successful entrepreneurs start companies in the industry where they already have business experience (Emerald, 2011). People who get formal and advanced training are much more likely to succeed than those who only depend on their inheritable entrepreneur genes. There exist many examples of students who still study very well even if they don't have the bright personality that we expect from entrepreneurs. For example, they can learn how to sell even if they are not ready, not comfortable with it or have cultural barriers.

In addition, longtime entrepreneurial consultant John J. Rooney, who is a managing director of Capital Partners IBG in Manhattan Beach, California, agrees with the point that it is possible when many of entrepreneurship traits can be successfully got from training. It is also clear that people, who take positive action, focused, committed, have potential to learn these entrepreneur traits (Erin,2000).

However, attitude is not everything in terms of actually having success at an entrepreneurship level. Knowledge about financial and marketing is so far more important in today's world in order to be able to compete in the keep changing economic and globalised market. A person can have good attitude, innovations and the drive to start their own business from an idea, but do they have the knowledge to keep it going and actually learn something from it? Thus an entrepreneur can also be made because they have to have the knowledge and skills to make a business on their own work like it should. Anyone can start a business, but it need to take a knowledgeable person to make it grow and prosper.

B. Theory application:

1. A general definition of entrepreneurship:

"Entrepreneurship is the process of creating value by bringing together a unique combination of resources to exploit an opportunity" (Morris,M et al.2007). In other words, it involves the process from identifying of business opportunities, putting resources together in the most effect way to ensuring for creating value and making profit from those opportunities.

2. Strategic integration of entrepreneurship throughout the organization:

Entrepreneurship can occur in even start-up ventures, small firms, mid-sized companies, non-profit organizations and public sector agencies (Morris,M et al.2007). Whether entrepreneurs are made or born, they have to face with a lot of challenges, difficulties and unforeseeable outcomes. That's the reason why one can say that entrepreneur mind comes from inside the person, but it will become useless if he or she does not know how to balance vision with managerial skill, passion with pragmatism and proactiveness with patience. Moreover, an effective entrepreneur is those who need to develop creative strategies for leveraging resources, planning for risk management strategies and formulating innovative solutions. It's all coming from the entrepreneurial intensity whereby an entrepreneur has a clear vision, they know what the goal is, how to achieve the goal together with the incorporation of many different organization's department so that it all leads to the best organizational performance.

3. The creative individual:

Possessing creative individual in any organization is the strength and opportunity if the person is put in the right place, sufficient support of teamwork, colleagues as well as the external economic factors. Creativity is the first signal of approving the statement entrepreneur is born. They may investors of new products, services or processes. They can turn ideas or prototypes into profitable realities, team builders but it's more important that undergoing many of work training and getting experience from the real life, real competitive market, they will become a driver behind the implementation of innovative ideas. In other words, an entrepreneur must be capable of strong vision and deep action to make it come true and bring many of benefits to the company.

4. Entrepreneurial motivation:

a) Economic factor:

Economic incentives are the major source of motivation for entrepreneur's operation activities. It means that entrepreneur will do well and bringing to the economic growth rate when the economic conditions are advantageous. Economic incentives may include taxation policy, industrial policy, plentiful sources of financial and raw material, investment and marketing opportunities, high foreign investment rate ….

b) Sociological factor:

Entrepreneurship is likely to get a raise in a particular social culture. Especially when the entrepreneur is a key of economic growing according to the expectations of the society; society's values, religious beliefs, customs will have a great impact to the behavior of individuals in a society.

c) Psychological factor:

Entrepreneurship gets a boost when society has sufficient supply of individuals with necessary psychological characteristics. These characteristics may come from the hierarchy of human being's nee such as need for high achievement, recognition, ability to face obstacles, being more successful…

d) Innovation factor:

Entrepreneur is usually innovative, creative and has a foresight. Thus, innovation occur when the entrepreneur

- Introduces a new product.

- Introduce a new production method.

- Open up a new market

- Find out a new source of raw material supply.

- Introduces new organizations in any industry.

III. Conclusion:

Overall, many arguments either for supporting "Entrepreneur is born" or "Entrepreneur is made" have occurred and we still could not find the appropriate answer. However, it may not be a big deal when one can combine natural and physical perspectives; anyone who has a great passion, dreams of success and make something different will have a chance to be entrepreneur if they are patient to learn from outside, learn from others, gaining experience, supplementing updated information and improve themselves day by day. Success actually depends on many different key factors; it may come from genetic tendency, intelligence, luck, knowledge, experiences and so on. Therefore, it's always good when one can identify, understand and know how to make internal and external traits more useful and more growing.

IV. Reference:

1. Pike & Helen (2005), ' Entrepreneur are made, not born', Business and Economics, vol.14, page 14, Proquest Central.

2. Aminal, K ( 2012), ' Entrepreneur:born or made', Daily Times, accessed 26/5/2012, available: < http://www.dailytimes.com.pk/default.asp?page=2012%5C05%5C26%5Cstory_26-5-2012_pg5_16>.

3. Leslie,T (2006), 'Are entrepreneur born or made', accessed 24/10/2006, available: http://www.inc.com/news/articles/200610/born.html.

4. Karen,E (2010), 'Are entrepreneurs born or made', accessed 23/7/2010, available: http://www.businessweek.com/smallbiz/content/jul2010/sb20100723_154719.htm.

5. Tara, L (2007), 'Entrepreneur is born, not made', Business and Economics, vol.21, issue No.9, pg 16, Proquest Central.

6. Scott A. (2009), 'Are entrepreneurs born or made', The New York Times, accessed 21/9/2009, available: http://boss.blogs.nytimes.com/2009/09/21/literally-born-entrepreneurs/.

7. Emerald (2011), 'What is an entrepreneur?: Understanding who they are and how they can benefit', Strategic Direction, vol.27, issue No.6, pp.22-25.

8. Erin (2000), 'Emerging Entrepreneur', Engineering, vol.32, issue No.6, pp. 20-21.

9. Morris, M.,Kuratko,D & Covin J.2007, Corporate Entrepreneurship & Innovation, pg.6