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Entrepreneurship is the new business starting by an entrepreneur, it is a process through which individuals identify opportunities, allocate resources, and create value. Entrepreneurship is combining of ideas, hard work, and adjustment to the changing business market. It also entails how the market demands are and what need to do by an entrepreneur. It is the practice of starting new organizations, capitalizes or business to identify an opportunities.
Entrepreneurship is very important it hasn't any drawbacks it helps to make the rich folks richer, and it always offers a hope for the poor and middle class people of moving up in the world. Because of entrepreneurship people become self supporting they are bringing new jobs for others people it helps to their countries economically. In another word Entrepreneurship is the way to bringing new ideas, experience and new ways to doing thing.
According to A.H.Cole "entrepreneurship is the purposeful activity of an individual or a group of associated individuals, undertaken to initiate, maintain or aggrandize profit by production or distribution of economic goods and services."
Jaffrey A. Timmons has defined entrepreneurship as "the ability to create and build something from practically nothing. Fundamentally, a human creative activity, it is finding personal energy by initiating, building and achieving an enterprise or organization rather than by watching, analyzing or describing one. It requires the ability to take calculated risk and to reduce the chance of failureâ€¦.."
" Entrepreneurship is meant the function of seekingÂ investmentÂ and production opportunity, organizing an enterprise to undertake a new production process, raising capital, hiring labor, arranging the supply ofÂ rawHYPERLINK "http://www.articlesbase.com/entrepreneurship-articles/entrepreneurship-definition-types-and-motivational-factors-1340726.html"Â HYPERLINK "http://www.articlesbase.com/entrepreneurship-articles/entrepreneurship-definition-types-and-motivational-factors-1340726.html"materials, finding site, introducing a new technique and commodities, discovering new sources of raw materials and selecting top managers of day-to-day operations of the enterprise". -Higgins.
TYPES OF ENTREPRENEURSHIPS:
Here are 3 categories of entrepreneurship. Firstly we'll define entrepreneurship as an activity that produces an economic profit and using the usefulness to society.
Productive entrepreneurship is the main principle which is usually lawful and right that entrepreneurs should follow. It is including of the new method of production developed by opening of a new market, the conquest of the new source of supply and the carrying out of a new organization of industry.
Productive entrepreneurship"â€¦ refers, simply, to any activity that contributes directly or indirectly to net output of the economy or to the capacity to produce additional output"- Baumol.
Unproductive entrepreneurship is including of profits based on a special relations of government or a special provision of the law that favours them. It can be highlighted as the problem of corruption in the government. Unproductive entrepreneurship could pull some individual away from productive entrepreneurship.
Destructive entrepreneurship involves those products which are usually harmful to economy, society and politics. These products usually fit criteria for entrepreneurship but money is actually made through harmful such as illegal acts. The most common highlight for this problem would be criminal such as drug dealer.
An entrepreneur is a person who wants to open a new business who earns firm, venture or business for the inherent risks and the outcome. A person who organizes and manages a business that undertakes and assumes a risk for the sake of profit is an entrepreneur. Entrepreneur is that person who owns and runs a business for inherent risks and outcome. Here are some definitions of entrepreneur:
AnÂ entrepreneurÂ is "a person who organizes and manages a business undertaking, assuming the risk for the sake of the profit."-www.yourdictionary.com
"The entrepreneur is our visionary, the creator in each of us. We're born with that quality and it defines our lives as we respond to what we see, hear, feel, and experience. It is developed, nurtured, and given space to flourish or is squelched, thwarted, without air or stimulation, and dies."- Author and successful entrepreneur Michael Gerber.
Sociologists define -"The entrepreneur as a creative innovator in the business sphere, in contrast to the conventional business-owner, capitalist, or professional manager, who conforms more often to established procedures and objectives".
Economists define -"The entrepreneur as a person who risksÂ capitalÂ and other resources in the hope of substantial financial gain, or as someone who specializes in taking judgemental decisions about the use and co-ordination of scarce resources".
FEATURES OF ENTREPRENEURS:
Being an entrepreneur is not only starting a business, it is about having attitude and the drive to succeed in business .All successful entrepreneurs must have these features for their business which is following:
Risk bearing capacity
Risk is the part of entrepreneurship, it is always risky to start new business or to do new thing differently. In business there can be risky situation like increase in competition, change in customers need and taste, shortage of new material, change in government policy, and change in technology. That's why an entrepreneur must have risk bearing capacity.
Confidence in their ability
An entrepreneur must have confidence in their ability to apply their creativity to business problems. They are forced and determined to achieve their goals and believe completely in their ability to achieve them.
Value of achievement over money
An entrepreneur must understand the values of money and the cost of thing so they can get their destination in profit.
The world business is very competitive environment. Entrepreneurs must be aggressive enough to pursue his goal despite having money rivals and competitors. And entrepreneurs need to know how to stay ahead of his competitors by introducing new ideas or exploiting new ventures.
So-called head for business
Entrepreneurs must know what product and services is going to be next in the market. They must look out for new ideas and new ways to make money.
Honourable and good work ethic
Its true business world is ruthless but an entrepreneur must strive to make every business deal honourably. An honourable entrepreneur is that who do a good personal work ethic that that ultimately leads to good business practices, excellent reputation and good association with industry peers and business partner.
Important of leisure time
Every entrepreneur must have hard work and determination. They must know what they need to do in what time. They must have to manage the time like some time for family some time for relax and rest time for business.
I have chosen Simon Cowell as my entrepreneur.
Simon Cowell was born in Brighton on October 7, 1959 and raised in Elstree, Hertfordshire. His parents are Eric and Julie Cowell. His fatherÂ was a successful real estate agent as well as an executive in the music industry, and his mother was known throughout town as a former ballet dancer and socialite. Simon has 3 half-brothers and a half sister named John, Michael Tony and June, and own sister, Lindsay Elizabeth and a younger brotherÂ Nicholas Cowell.
Simon is aÂ BritishÂ music executive,Â television producerÂ andÂ entrepreneur. He is known in the United Kingdom as well as in United States. He is a talent judge in UK's pop idol, in American idol in The X Factor andÂ BritainHYPERLINK "http://en.wikipedia.org/wiki/Britain's_Got_Talent"'HYPERLINK "http://en.wikipedia.org/wiki/Britain's_Got_Talent"s Got Talent.
He attended school at Dover College but dropped out at 16 because of his bad behaviour. In his early life he loved to make money so he washed windows and mowed lawns but could not get enough money not even for his pocket. His father always told him to make money in his own way. Then he worked as a waiter and record shop clerk. Then his father found a job for him in mail room at EMI music publishing. Later he got another position as an assistant to an A&R executive at EMI in 1979. But he left by mutual agreement. After few years at age of 22 he worked in British record label Fanfare with his partner Iain Burton for 8 years. Fanfare enjoyed short lived success and folded in 1989. He was in debt then he moved back to his parent. After that year he signed as a consultant in BMG record. Then he started to climb ladder in BMG. He managed to sign a string of successful act for the company by selling 150 million records and to top chartings singles in UK and US. In 2001 he produce pop idol and he was judge in that show. Again in 2002 he produce American idol and he was judge in that show. He has become known for combining his music and television interest. He set up SYCO TV in 2002, which created TV shows such as American inventor, American got talent and The X Factor. In 2004 he was one of the top entrepreneurs of the year. In 2006 he renewed his contract with American idol for five more seasons. In 2007 Cowell earned the No. 3 slot on the Forbes TV faces list and No.21 on Forbes's celebrity 100 power lists.
He also created anÂ American IdolÂ spin-off,Â Idol Gives Back, a two-episode special that helped to provide aid to children in Africa and the American poor. The show raised $76 million for charity.
BUSINESS DEVELOPMENT MODEL OF SIMON COWELL
Cowell was worst teenager and dropped out from the school. After that he turned at work. His father managed him to get a job at mail room in EMI music. Cowell worked hard and found A&R artist and repertoire position in BMI. Simon worked and promoted to music publishing position but he left around early 1980s. He wanted to work something by himself. Later at the age of 22 Â he worked with his partner Iain Burton for eight years at British recording label, Fanfare where he achieved his first real success in the music industry, becoming a partner and building Fanfare into a highly successful 'indie' pop label. Burton was the manager of choreographerÂ Arlene Phillips, co-founder of dance groupÂ Hot GossipÂ and of nascent independent record labelÂ Fanfare Records. Then in 1984, Cowell and Burton met up withÂ Pete Waterman is the English producer of UK record company BMG for the first time.
Pete waterman formed the song writing and record producing with English song writer and record producer mike stock and matt Aitken known as a 'Stock Aitken Waterman' which helped Fanfare for producing hit singers and licensing the recording studio The Hit Factor. In that time he produced some smash hits like ToyBoy and So Macho with Sinitta, his then-girlfriend. Then he released the Power Rangers theme single, which was became another hit. When he tried to launch Spice Girls, he failed, he was in debt he lost his everything after that he moved back to his parents and later that year at the age of 30 he became an A&R in BMG. In that time Cowell signed up a number of acts toÂ his own label S-RecordsÂ that became successful, includingÂ Curiosity Killed the Cat,Â Sonia,Â Five,Â West life,Â Robson HYPERLINK "http://en.wikipedia.org/wiki/Robson_&_Jerome"&HYPERLINK "http://en.wikipedia.org/wiki/Robson_&_Jerome" Jerome, andÂ Ultimate Kaos . He also released severalÂ novelty recordingsÂ featuring the likes of wrestlers of theÂ World Wrestling Entertainment,Â Teletubbies,Â Zig and ZagÂ and theÂ Mighty Morphin Power Rangers, that were huge successes. Cowell set up another label,Â SYCO Music, in 2002 which later became part ofÂ Columbia RecordsÂ andÂ Sony BMG Music Entertainment. Artists such asÂ Leona Lewis,Â Il DivoÂ and contestants fromÂ The X FactorÂ andÂ AmericaHYPERLINK "http://en.wikipedia.org/wiki/America's_Got_Talent"'HYPERLINK "http://en.wikipedia.org/wiki/America's_Got_Talent"s Got TalentÂ are released on SYCO.
In 2006, Cowell signed to two more record-breaking deals. In the USA, he agreed to remain as a judge onÂ American Idol, earningÂ £20Â million per season for another five years. He also has a deal with FOX which allows his production company to broadcastÂ Got TalentÂ andÂ American InventorÂ on other network.Â In late 2005, he signed a new contract to remain working for Sony BMG.
He was most recently featured on theÂ seventh seriesÂ ofÂ The X FactorÂ and theÂ fourth seriesÂ ofÂ Britain's Got Talent. In 2010, British magazineÂ New StatesmanÂ listed Cowell at number 41 in a list of "The World's 50 Most Influential Figures 2010". He has earned so many awards like Emmy, music, best judge awards. The X Factor is Cowell's own show which has own the BAFTA award.
In 2010, Cowell finalised a deal which secures the long term business future of Syco withÂ Sony Music Entertainment. The deal will also see him launching aÂ US version of X FactorÂ on 11 September 2011.
Cowell was in debt while working in fanfare, he was in debt in his first venture and in 2003 his reality showÂ CupidÂ was cancelled. Losing in Fanfare means he lost his everything money, his hard work everything. But after 1 year he became a success person. He got A&R position in BMG. He is a great record producer, music executive, and television personality, as well as successful entrepreneur.Â He considered himself an entrepreneur rather than a music man. He is successful entrepreneur because in his life in his work he never backed down, he never stopped, he accepted the failure, he was honest, and he trusted his instincts then he became a successful person. Cowell said the secrets of his success- "Work hard, be patient, and be a sponge while learning your business. Learn how to take criticism. Follow your gut instinct and don't compromise."According to The Sunday Times Rich List In 2010 he was the 11th richest music millionaire. His shows are popular in the world. His shows pop idol is franchised in America as an American idol and in India as an Indian idol. And he launched The X Factor in America after UK. So far, this show has been licensed to more than 30 countries. Currently cowell is in his eighth season ofÂ American Idol.
CRITICALLY EXAMINE THE CRITERIA USED BY SIMON COWELL FOR SELECTING AND IMPLENTING NEW BUSINESS VENTURES.
We already discussed about Simon's early life and his business development model.