Entrepreneurship is described as a process undertaken to establish an enterprise by an entrepreneur, this is an activity linked with creativity. Entrepreneurship is the ability of an entrepreneur to create or build something from practically nothing. Entrepreneurship is an art of finding opportunities while others see anarchy, confusion and contradiction. Entrepreneurship is a knack of mind to run after opportunities, taking calculative risks and obtaining desired benefits by setting up an enterprise or a venture. Entrepreneurship is linked with numerous activities involving apprehension, creation and running an enterprise. According to Peter Drucker (a writer and social ecologist) Entrepreneurship is described as a process of organised and purposeful search for changes which are contained in systematic innovation, and these changes or opportunities might offer for both economic and social innovation.
From the perspective of an entrepreneur and enterprise, entrepreneurship is the process of establishing enterprise, the second perspective being entrepreneurship is about arbitration through innovative designs in a larger process and at macro level to develop or create entrepreneurs. Entrepreneurship is an activity that involves discrete actions to be undertaken by an entrepreneur to establish an enterprise. This gives an impression that enterprise is the channel through which an entrepreneur can work.
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Entrepreneurship = Entrepreneur + Enterprise
Entrepreneurship is a risky and dynamic process involving pool of technology, talent and capital, which is an outcome of psychological, legal, technological and socio-economic factors. Gibb (1987) cites McClelland for identifying three motives of entrepreneurship, which are Need for Power (nPow), Need for Achievement (nAch) and Need for Affiliation (nAff) (Gibb, 1987). Entrepreneurship is applicable to both economic and non-economic activities and also to small and big businesses. Different entrepreneurs will have some different and unique features, although they have some common traits or characteristics. Entrepreneurship is a philosophy that means it is the way that an entrepreneur thinks and acts, therefore it exists in many situations be it in science, technology, business, education or government (Campbell, 1992).
Entrepreneurship is an action that advances to the managing and creating of a new organization which is designed to pursue an innovative opportunity (Hindle and Rushworth, 2000). Nixon (2004) describes entrepreneurship is all about using an enterprise to build a new businesses, 'can-do' organizations and services (Nixon, 2004). Gibb define entrepreneurship as management or the functional skills that are required to start, manage and develop some small businesses (Gibb and Nelson, 1996).
3.1Three Dimensions of Entrepreneurship:
The 3 dimensions of entrepreneurship are Entrepreneur, Enterprise and Eco System or the business, social and cultural environment. An entrepreneur works in an Ecosystem with an enterprise as a medium. In a broad context, entrepreneurship development is all about working with the three dimensions in an integrated manner rather than isolation.
There are many different usages and definitions for 'Enterprise'. Enterprise is created by an entrepreneur, and the process of creating is called entrepreneurship. If we consider entrepreneur as an actor and entrepreneurship as an act, enterprise is the outcome of the actor and the act. An enterprise is a business firm that is formed by an entrepreneur and which provides goods and services, contributes to national income; create jobs, overall economic development and exports.
Nixon(2004) describes enterprise as all about spotting opportunities, creating new business ideas and having capabilities or confidence to turn these ideas into working realities (Nixon, 2004). Enterprise involves encouraging individuals to become an entrepreneur and gear up with the necessary skills to run a successful business (Mason, 2000). Bridge, O'Neil and Cromie explains two different views of an enterprise, which are narrow view of enterprise and broad view of enterprise. In narrow view, they view enterprise as starting a business, being in the business and developing the business, which is similar to that of an entrepreneurship. In broader view of the spectrum, enterprise can be defined as flexible, positive and adaptable attitude to change. They refer to enterprise as exercising the enterprising attributes and regards as a set of competencies and enables individuals to be flexible and adaptable to change (Bridge & O'Neil, 1998).
Defining enterprise Gibb refers to enterprising or entrepreneurial attributes, such as creativity, flexibility, risk taking, problem solving ability, imaginative, leadership, nAch, independence/ autonomy. Now, he defines enterprise as exercising entrepreneurial attributes in any environment or task context (Gibb, 1987). He explains enterprising behaviour as the development of the learning skills which enables learning to be personalised and applied to the workplace. The learning process is continued beyond the education or training with the participant fairly in control.
5. Impact of the difference on Business Development:
Always on Time
Marked to Standard
To explain the impact on business development due to the difference between enterprise and entrepreneurship, I would like to consider an example of a company 'InterAKT', which was started by 'Alexandru Costin' a French entrepreneur. From the childhood he was fascinated by computers and he quickly got addicted to it. At the age of 14 he met Bogdan, whose parents know each other. They together started learning computer science. Alexandre was very good at assembly language; he built a windowing system in assembly code. In the high school he managed to write vocal recognition software, they were close to recognize words through pattern recognition. In 1996 he was given first internship of Java 1.0 programming. In 1997 he joined as CEO for 'Contextus', which exhausted very soon.
Meanwhile Bogdan got his internship in France. He was doing over time in France and managed to save 2000EUR. He was wondering to buy a car or start a business along with Alexandru, he made a wise decision to lend 1000EUR to Alexandra for starting his new enterprise 'InterAKT', and they started their business in a university dorm. He exploited French market by doing some outsourcing work for Bordons friends. That means he exploited an opportunity that came their way, with the help of his functional skills (entrepreneurship). Unfortunately they started the enterprise in dot com bubble, which led contracts fade very quickly. Then for sustaining (entrepreneurship) in the market they sold few shares to Mihai Pricope and Christian Marin.
After the dorms, they were working for French based company that offered free office space and soon when the French company went bankrupt, they moved to a rented flat, where there were six people working. Soon by using their creativity (enterprising behaviour) they exploited another opportunity of PHP support in 'Ultradave', which was a biggest hit. On other track they were trying to implement full- fledged ERP. Fortunately, they found another market of Dreamwork extensions and it was rather better than doing outsourcing. Here they have taken a risk of dividing the company into two, with bodgan doing outsourcing for R&D expenses and Alexandru doing products division (Developing the small business), later they released ImpAKT and NeXTensio and they sold 200 licences in the first year. The company development continued, which was tripling or doubling each other.
Then they moved into a new office, which was three times of the previous one and the number of employees rose to 20. In the same time there was infusion of talent in the company. Sebastein, a law graduate came in and started teaching about skills and empathy (Leadership style). Then they came up with MX Kollection, which was a product built for customers by product managers, skilled sales, and programmers. The company started to grew faster than they expected. The most interesting stuff happened in 2006 when this company was bought by 'Adobe'. Thus we can see that the firm started as an enterprise end up merged with a corporate company. Even though they were not aware of the managing skills, due to the learning skills at each stage they could develop their business. If they did not go through the learning process, they could have still be doing outsourcing rather than developing the business.
6. Conclusions: The terms Entrepreneurship and Enterprise has different meanings and these differences make a huge impact on the business development. The enterprising behaviour helps an enterprise to develop learning skills and implement them whereas entrepreneurship helps to develop creative thinking, exploiting opportunities at a specific time, which has a huge impact on the business development. Not many authors differentiate entrepreneurship with an enterprise, still there are lot more differences between the terms and therefore it needs more research in this area.