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In this essay I will be analysing the validity of the following statement "The Entrepreneur is dead, long live the Infopreneur."
What is it REALLY meant by the term entrepreneur/Entrepreneurship?
According to Oxford English Dictionary the term entrepreneur is outlined as "person who sets up a business or businesses". An entrepreneur is a person who has new idea, venture, enterprise and assumes significant accountability for the outcome and inherent risks. Entrepreneurship is the art of innovation and the attitude and quality of taking risk in order to make profit in business.
Infopreneur is the 'person whose primary business is gathering and selling electronic information'. Infopreneur is a entrepreneur who make money through the process of selling information on the internet.
In the current & future market infopreneur seems to be more in trend compared to entrepreneur. The main reason for this is the development of the technology.
From the beginning of the history , several economists from different backgrounds argued to theorize the defenition of this concept, until the 18th century a frech economist named Richard Cantillon used it as an economic term describing "a person who pays a certain price for a product to resell it at an uncertain price, thereby making decisions about obtaining and using the resources while consequently admitting the risk of enterprise." which is probably closer to the term as applied today. The following definition was later extended by others by including the concept of having the factors of production.
Some definitions of an entrepreneur are listed below:
In 1976 British economist Adam Smith described in a few words the concept of entrepreneurship, as "entrepreneurs were the economic agents who transformed demand into supply for profits.
In 1803, french economist Jean Baptist Say, has extended the term entrepreneur. He defined an entrepreneur as any person who. Say described an entrepreneur as one who has several skills of creating new economic enterprises, but also had the vision into society's demands and was able to fulfill them. He also extended the term to have the idea that entrepreneurs were
Say broadened the definition to include the idea that entrepreneurs were bosses bringing people together and managing them in the company.
In 1848, the famous english economist John Stuart Mill stated entrepreneurship as the founding of a private company. This incorporated the risk takers, the decision makers, and every individuals who needs capital by maintaining limited resources to establish new business enterprises. And he underlines on how valuable the entrepreneurship is for economic development.
After Mill , the aspect of the entrepreneur in economics has advanced to evolve.
In 1934, the best definition was coined by the Austrian economist Joseph Schumpeter, and also added the idea of innovation to entrepreneurship. He described that the entrepreneur is one who provides innovation within the context of the business to meet unfulfilled market requirement. In elaboration, he identified an entrepreneur as an innovator who performs change within markets through the carrying out of new combinations. He describes entrepreneurship as an action that gives introduction a new product, a new product method, new business or a new form of organization, and he also states that these actions will assist bring wealth by creating a need in the market from a newly introduced innovation.
Sadly, even though many economists agree that entrepreneurs plays an important role for economic growth, they continue to argue over the definite role that entrepreneurs play in developing economic growth. Some thoughts on entrepreneurship indicate that the role of the entrepreneur is that of a 'risk-taker' in the face of ambiguity and inadequate information. Although many current theories on entrepreneurship agree that there is an essential factor of risk, the risk-bearer theory alone cannot explain why some individuals become entrepreneurs while others do not. For example, Knight, Mises claims anyone who has an ability to sustain the risk of losses could be called an entrepreneur under this narrow-definition of the entrepreneur as the risk taker (Swoboda, 1983). Therefore, it is essential to look at some of the other characteristics that help explain why some people are entrepreneurs; risk may be a factor, but it is not the only one.
Entrapreneurship is a dynamic process that helps creating incremental wealth to the scociaty as well as the entrepreneur itself. The created wealth by individuals who believe the main risks in terms of capital, time and career commitment of giving value for some product and service.
Created product and service itself may be entirely new and unique or may not be, however the entrepreneur somehow has to introduce value by acquiring and allocating the essential skills and resources.It is a fact that by archiving so an entrepreneur meets his creative wish, each and every succesfull project carried out leads to self satisfaction.
Since the very early of 21st century technologies are growing very quicky and playing a greater role in many different fields. Either people become aware of it or not, the way manage business and live our lives would be much different if it weren't for the continually changing technology.In today's world we are totally living in a computerized world Technology in business industry has big impact where the opportunity of creating business evolving worldwide. As the result of evolving technology, conventional face-to-face business industry loosing its intrest where as importance of online business is advancing rapidily.
According to nielsen statistics, is the primary source of audience measurement information in the television industry around the world. Its has published overall online shopping trends over 875 Million Consumers Have Shopped Online.More than 85 percent of the world's online population has used the Internet to make a purchase-increasing the market for online shopping by 40 percent in the past two years-according to the latest Nielsen Global Online Survey on Internet shopping habits. Globally, more than half of Internet users have made at least one purchase online in the past month, according to Nielsen.
"When The Nielsen Company conducted its first global survey into Internet shopping trends two years ago, approximately 10 percent of the world's population (627 million) had shopped online," said Bruce Paul, VP, Customized Research, Nielsen U.S. "Within two years, this number has increased by approximately 40 percent (to 875 million)."
The most popular and purchased items include: Books (41% purchased in the past three months), Videos / DVDs / Games (24%), Airline Tickets (24%) amongst other things such as clothes and accessories (36%).
Internet is a way to reach out to anyone, anywhere in the world it allows people to
fulfill businesses without any limitations such as time or distance. Individuals can log on to the internet at any time and buy or sell anything at a single click of the mouse within few second.
Most important of all is that , computers is capable of converting any transmitted analogue information such as videos, pictures, books, sounds, etc. into digital medium, where is transmitted to any individuals anywhere in the world over the internet.
This has established a radical change within existing businesses to maintain competitiveness within a market and the occasional radical change to create new businesses and markets to survive over the long term
Although is right to say that Internet factor is huguly affecting every business in every industry, its major effect its on information industry such as entertainment (films, music), news, books, magazines, education etc.
Below I will try to compare traditional book with an e-book within information industry:
In order to manufacture a physical book trees are required to make papers, in the next stage the information is transferred through printing process, later many hands and energy such as shippings are required to shift the book from manufacture to retail stores and , finally to the consumer.
percentage of revenue an author gets from each book sold is 20% that means the author gets £10 on every £50 book sale. The remaining £40 goes to publisher to cover the manufacturing, shipping and other expenses. Lets say if a publisher manges to sell 15000 books in one year , the author will only get 20% of that sales, thats means £15000 for his imaginative works.
if the author decides to produce the same book in a digital way known as e-book, then the process can be shortened considerably , where the author can produced and package then delivers anywhere in the world in just few seconds ,from a environmental view i would expect e-book to cause a lot less damage with almost no impact on environment.So long as
Lets assume the author of a book decides to be an infopreneur, by setting up a website where he can sells the books through on line to the world marketplace, more likely he will going to sell more books as a result of reaching more and more people. Lets say he sells identical number of books at the same price.
The followings are the cost for setting up a online book store in a year:
for the creation of the website he will going to spend around £3000, £80 a month for a good web host (dedicated server), about £2500 a month for a webmaster, an extra £3000 on advertisements on google in order to gets traffic.
The initial cost the author going to spend in total is £77,600, by selling 15,000 books at the price of £50 each he would generate net sales of £750,000, after deducting the initial cost he will be getting £672,400. this means he will be getting an enrmous 90% of profit. As e-book content continues to grow i see significant growth in the market. Author would enjoy this kind of success in offline business.
£30,000 for webmaster
£8,600 for host
36,000 on advertising
Even-though it would be unacceptable to state that the entrepreneurship is dead but we are aware that infopreneurship is most most certainly the trend and the focus of the future economy and future generation. There are strong evidence for the success of the online trading & promoting the business through internet. The most successful businesses such as Ebay, Google and Yahoo proofs the success of making profit through internet business. There are many other large companies such as Microsoft, Airline and banks who has successfully promoted their business through internet. Biggest question that raised in my mind about infopreneurship is that, how & is it possible for the businesses that trade in a traditional form & service their local community to benefit from infopreneurship?. Researches & successful stories enabled me to understand the fact that it is possible for traditional trading businesses to also benefit through internet. These businesses can identify their target audiences & obtain a marketplace. Internet can be used to add value to their products & enable all the local community to be aware of the service & products available. Through the internet products & services can be given to more than one community easily & quickly.