Entrepreneurship means the act of acting as an entrepreneur , owner the decision taker , who undertakes the responsibility and the onus of creating new things and developing innovations , undertaking financial and business needs which is all combined towards an effort to transform innovations and other activities into economic and development goals , both entrepreneurship and innovation come hand in hand .
These all activities lead to making of new organizations or rejuvenating any mature organizations in result to a perceived opportunity. The most obvious form of organizations is the start up of company. the beginners . But in the recent times there has been result of many social and political organizations of entrepreneurs .
As per Paul Raynolds , " by the time people in United States reach there retirement age , half of all the working men , probably have a self employed period of one or more years , one in four have a self employment period of six or more years .
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But it has been observed that participating in new business ventures or projects has been a common activity among the US workers
Entrepreneurial activities are different as per the type or kind of organizations . and the amount of creativity involved in forming that organization or project . It differs from solo entrepreneurs ( part time businessmen's ) to major enterprises which create various job opportunities . Many high value business seek venture capital in order to start their business activities or or to build their business ( to increase the scale of their business ) . Many organizations now exist to provide consultancy services to start up entrepreneur's or suggest the existing enterprises , how to ramp up their business activities or increase the scale of their business centers .
( These consultants include business incubators , scientific parks , NGO'S , social .political and knowledge entrepreneur's , they are in their self well established entrepreneur's , who posses good years of experience in the field , in which they provide consultancy and suggestions .
As in the words of Schumpeter , an entrepreneur is a person who is willing and capable enough of converting a new idea or invention into successful and good innovation , As per Schumpeter , the entrepreneurship activities involve what is called creative destruction in order to replace the complete or a part of inferior innovations across markets and the industries , which leads to creating new products and and new business models . In this way the creative destruction instrument is responsible for dynamism of industries and long term economic growth .
As per Schumpeter , the entrepreneurship power has lead not only of establishing new business , but also rejuvenating existing organizations , and also of making new ideas or products with the existing inputs .
Isreal Kirzner , the majority of innovations are just incremental improvements, such as replacement of paper drinking straw's with plastic drinking straw's .
The concept of entrepreneurship has gained importance in both developed and developing economies , for driving the economic growth upwards . It promotes capital formation and creates enormous wealth in the country . Entrepreneurship helps in providing hope and fulfilling the dream of millions of individuals and it also helps in eradicating poverty , and unemployment .
It is the process of finding out lucrative opportunities in the market or in the industry , and arranging all sort of resources which are required to exploit the found out opportunities , in order to earn the long term gains and profits . It is the process of planning , organizing which are directed towards exploiting opportunities for gaining out of them . Entrepreneurship can also be called as the risk of business enterprise , it is the most creative and innovative skill and adapting a response or reply to the environment .
Since it has been seen that entrepreneurship develops and supports economic growth of the country , many governments have made a policy to develop a culture of entrepreneurship thinking . This goal can be achieved by a number of ways , as integration of the educational system , into the policy of entrepreneurship , legislating to encourage risk taking , and national campaigns
Financial bootstrapping is defined as the ways to minimize the use of encouraging debt investment in the business and in helping to encourage methods by which company's have more equity in their capital structure ,in place of debt .
The use of private credit card is the most common form of financial boot strapping . but there are many way in which methods are accessible to the entrepreneurs . There is risk for the stakeholders while using bootstrapping , but in the absence of it , the stakeholders enjoy more freedom in controlling and managing their business enterprises .
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Different Types of Bootstrapping is as follows :
Owner financing , sweat equity , minimization of accounts receivable , joint capability , delaying payments , minimization of inventory , subsidizing of finance , an personal debt financing .
As per a youth entrepreneurship summit in Toronto ( Canada ) , the following things were discussed :
The discussions were regarding teaching lateral thinking skills to gifted kids across Canada for the past 4 decades . and there are many people from the corporate world , as the top CEO's and managers in order to attend courses and programs on lateral thinking by Edward de Bono. Members who have funded ( in the form of paying property taxes ) to support our education system , they should get refund coz the education system has failed us , since most of the kids exit the school system cognitively deficient .
As the kids enter in grade 1 , in which we learn numbers teachers teach us the technical operacy skills behind the numbers ( the plus, subtract , divide and multiply and etc ) then we enter into higher operations which are based on cognitive basics .
Research is a prove which shows that kids which are thought these basic operations in grade 1 or 2 , show an improvement tendency in higher grades .
In UK , when kids were attending a class of half day workshop on lateral thinking skills , later grew up to become great entrepreneurs and successful business men and some of them become community leaders at a percentage of greater then the rate of normal population growth rate .
By this exercise , you can imagine that how much more successful the entrepreneurs can be , if all of them use their cognitive skills , with the help of the well equipped mentors
There is strong relationship between entrepreneurship and opportunity , as it is said people create opportunities, which is greatly effected by migration or immigration flows and patterns . As a study suggests that many immigrants have a higher livelihood as compared to the local population in large , while opening new business projects
The report also suggests that the immigrants would return home , after graduating and getting degrees from United States and enjoy a good and successful livelihood in their mother land . They would leave the country which trained them to create and innovate with the most sophisticated instruments .
The other distributing result for United States is that only , 6 % of Indian, 10 % of Chinese and 15 5 of Europeans want to settle in United States . The no of graduate students who had earlier planned to stay in United States , for the few beginning years of their career , out of them only now 58 % of Indian , 54 % of Chinese , and 40 % of Europeans students want to stay on , as compared to the earlier statistics of 92 % of Chinese and 85 % of Indians .
The most shocking fact is that the students polled included or represented entrepreneurial group : 64 % of Indian , 66 % of European and 68 % of Chinese students said they wanted to start their own venture with most of them hoping to start it in their home country .
It is important now to develop a taxonomy of cross culture body language .
Entrepreneurship and innovation in a knowledge based economy ,
As per Mustafa Mansur , building of the knowledge manpower through the introduction of a process for lifeless learning and brain gain program , intensification of scientific technology and research and development techniques in order to strengthen the national innovation system ., providing a boost to the development of infrastructure in order to help in developing the knowledge entrepreneurship . and also leading to restruction of financial system to provide good and efficient financing options for all type of knowledge activities . This all is possible by raising the knowledge content in agriculture , manufacturing and service sector . and encouraging the private sector to prepare itself with the need for knowledge entrepreneurship , leading to exploration and identification of new and naÃ¯ve opportunities . It should also reinvent the public sector to become more proficient and lucrative in acquisition , utilization and management of knowledge .
The SME ' S Concept : The participants through which various processes and concepts behind knowledge management before drawing applications for SME'S , were guided by Moon Kyum Kim . . He explained the recent thinking of knowledge management , which included distinction between knowledge and know how and knowledge and learning .and other few linked concepts.
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In order to utilize knowledge as a competitive force , it is important to use and interpret knowledge from the firm's perspective . The main purpose of a firm is to make decisions and operate efficiently in order to make profits and earn rewards . So in this light knowledge is useful for the firm to take useful and important decisions and to carry on its business activities .
Thus knowledge can be defined as a collection of facts , figures , knowledge , know now and other systems that are engrained in individuals or in the organizations , which can further be utilized for decision making and carrying on business operation .
Facts include the things such as : " know how , " know why " and " know when " and many more things which may prove beneficial for the business activities , which is all obtained from experience and learning . The know how is firm specific and involves management techniques and skills . The patterns imply an internal process of performing tasks and various jobs , while the systems and processes refer to the company's by laws , rules and organizational culture . Knowledge that is specific is difficult to transfer , trade and it can lead to its value reduction when it is applied outside.
After the identification process of the knowledge , the management consists of the following five elements ; strategic , knowledgeable assets , knowledgeable activities , objectivity and knowledgeable infrastructure . These are all the management domains which an entrepreneur can efficiently target . An entrepreneur moves around all these management domains by the performance of all the knowledgeable activities and knowledgeable assets in particular . These all things seems to improve the competitiveness of knowledge assets by the way of efficiently managing all such activities as knowledgeable creation , sharing of knowledge , transfer of knowledge and learning of knowledge through the infrastructure of knowledge laid by the organization , human capital and information technology , These all things are required to achieve product leadership . operational excellence and customer intimacy .
There are many points , raised regarding entrepreneurship development , that the participants from India raised , (which are characterized by low literacy rates , low exposure , and mobility and rural or nomadic populations and other traditional culture such as racism , which is not conducive for introduction of entrepreneurship activities .