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What is meaning of entrepreneurship? The concept of entrepreneurship was first time introduced in 1700s and its meaning evolved since that time. Few economists say that entrepreneur is one who bears the risk of a new venture when a chance of profit exists there. Other economists argue that entrepreneurs develop the new processes and goods which are in need of the market. Economist Joseph Schumpeter focused on how the entrepreneur's drive for improvements and innovations makes upheaval and changes. Hence Joseph called the entrepreneur as a force of creative destruction. These entrepreneurs bring new combinations and render the old industries obsolete. The old ways of doing business are replaced and destroyed.
Entrepreneurship has been an issue which dominated the public concerns since last two decades. Due to number of reasons it has become glamour. It included the crisis of the large companies governed by the manager (Nohria, Dyer and Dalzell 2001) and current discovery of the small business companies (Birch 1979).Great entrepreneurs have shaped these facts of public imagination, it is called the huge restructuring process of the nineties by the great entrepreneurs (O'Boyle 1998). Real entrepreneurs are able to carry out the waves of innovations in the private sector especially in those industries which are role player to bring the new era of globalization (Cusumano and Selby 1995; Chandler 2001).
The concept of the entrepreneurship is central to wealth with other competitive factors of the nation; and most advance countries are attempting to codify it both for the industrial policies and instructional. Hundreds of schools and colleges in USA alone are offering new programs of entrepreneurship (Swedberg 2000: 8). Entrepreneurship is found in large corporations as well as in small shops. It is presented in various forms.
3.0 Entrepreneurship and economic growth
The work of the Schumpeter (1990) is original and pervasive about the entrepreneurship. Innovation has got special treatment as it is possible source of growth. It is also linked with the individual entrepreneur's figure. Entrepreneurship has brought together the economic and innovative processes by developing a theory. Schumpeter (1942) has predicted that appealing trend of concentration is capital system; innovation is not the realm of the entrepreneur but it can be the job of the innovation professionals and those companies governed by the managers. Wennekers and Thurik (1999) have well organized the link of economic growth and entrepreneurship by decomposing the concept of the entrepreneurship.
Managerial business owners
Table 1: Types of the entrepreneurs
Wennekers et. Thurik (1999, p.47).
Entrepreneurial is the ability and willingness of individuals with their team in and outside of their organization to create and perceive the new opportunities economically. Introducing these ideas into market, when there are obstacles and uncertainties found in the market. Making a decision on the location and use of the resources and institutions is outstanding. On the other hand managerial entrepreneurs are established by organizing and coordinating Wennekers and Thurik
(1999, p. 46-48).
However it is also said that entrepreneurship is not considered well-developed component of advance economic theory. Neoclassical economist found it hard to settle the requirements of rational decision making with functions recognized to entrepreneurship (coordination, uncertainty bearing and innovations). Entrepreneurs are known as the bearers of risk (Cantillon 1755 and Knight 1921). However none of the thinkers has distinguished between the entrepreneurs functioning in different business environments or differences between the entrepreneurship in poor and wealthy countries in economic history at various stages.
4.0 Entrepreneurial Climate and Culture
If we consider that measuring and defining the entrepreneurship is a difficult task; climate and cultures are recognized the essential components of the entrepreneurship. According to the Beinhocker (2006: 430-1) there are four different culture norms that affect the wealth creation. First norm concerns the individual's attitude towards their capability to control their own fortunes and destinies. He suggested that
"Economically successful cultures appear to strike a balance between optimism that improvement is possible, and realism about one's current situation" (Beinhocker 2006).
5.0 New field of research: gender and minorities
Many ethnic minorities like Jews in Europe, Chinese in South East Asia and Greek Diaspora have successfully migrated which emerged a real relationship between environment and entrepreneurship. Ethnic groups have many cultural advantages of their origins homeland due to relationship. Locals have lack of entrepreneurial spirit and migrants have advantage to enjoy the benefits of insiders as sharing knowledge and financial solidarity. A recurrent pattern is found when there is a long way to build skills in commerce while the agriculture is absent in homelands (Godley, 2006). There is another example of Greek Diasporas. In this way history is very important and form of clan is different from the family networks having with advantages as it provides the superior knowledge of profit opportunities to its members; members build the trust among themselves and superiority of members in widening the risks.
6.0 Social and community enterprise
Wide range of social, co-operation and environmental issues are tackled by the social enterprise. Social firm, local community enterprises like large scale organizations and co-operative organization functioning nationally and internationally. No single legal model for the social enterprise is founded. European Commission has defined the social enterprise is considered an ensemble of mutual organizations, co-operative business and associations. In countries like Spain, France and Italy the level of skills and employability is increased by bringing the excluded groups into a labor market. Small and large organizations have social and economical impacts on society which is more important than categorizing them with labels. Currently community rather than global level is focused to fight the issues and generating the economic growth. It means that at community level economic, social and cultural growth is fostered. In UK the modern community enterprise originated in 1970s which has developed in new and varied ways. What are the key objectives of community enterprise?
Creating new opportunities of jobs
Providing those important goods which are not available in market
Encouraging and empowerment of communities and individuals to take control of their lives
In UK a traditional dependence on government is seen which provides social, educational and housing services to the community. Several projects based on the social needs are completed and being completed in deprived areas of the UK. The UK government financed the job creation programs and community organizations used these schemas to engage staff.
7.0 Entrepreneurship Education
Entrepreneurship education asks the people to be prepared socially, especially youth who is responsible and become entrepreneur thinkers when they contribute to the development of communities and economics. These findings are not found in books instead of it students are immersed into real life experience, where they are faced with risks, managing the outcomes and learn from the results. Entrepreneur education does not teach us just to learn about the running of business but encourages the creative thinking and promotes the strong sense of self accountability and worth. The core knowledge about the entrepreneurship education includes the following as.
Recognizing ability of opportunities in life
Marshaling towards the required resources and pursuing the opportunities which generate new ideas
Capabilities of creating and operating new ventures
Thinking in a critical and creative manners
The benefits of entrepreneurship education are seen at all age levels and evident is also available. In USA the entrepreneurship education is taught at all levels of education but it is still limited. Majority of the American people cannot access the training and resources related to entrepreneurship education.
8.0 Fostering the Entrepreneurship
Individual entrepreneur's traits like attitudes, skills and other actions are important. Policies for boosting the entrepreneurial must not only focus upon the macroeconomic conditions and access to finance but also the policy tools promoting the entrepreneurship. These policies are doubtless important to build the base of individuals to start the business and accessing the necessary means. However these policies alone do not suffice (Barreto 1989:54). Individuals are the main agent of entrepreneurial activities. Since the time of innovation the entrepreneurial decision is the perceptible for a single person. One approach says that strengthening the entrepreneurial traits is fostering the entrepreneurship (McClelland, 1961). Therefore the McClelland has been central point of reference for the traits approach. On the other hand Thomas (2001) argued that study of the entrepreneurial potential and culture has been adopted differently in cultures. He further argued that some cultures are more conducive to these entrepreneurial traits as compared to others (Muller and Thomas 2001).
9.0 Women and Entrepreneurship
Gender difference in firms exists which produces different results. This is due to differential access of resources or based upon the founder intentions. The difference in experience, education, business network and access to financing and founder intentions are varied by the gender. For example lower threshold women founders set their business that is due to small sized women-owned firms (Cliff, 1998). There exist many reasons of this women set lower threshold than men. The observed risk of high rate of growth to balance the career and work become the concerning point for the women and guides them to limit the strength (Cliff, 1998). Women desire to keep the business small and do not want to lose the control (Still, 2005 Cliff, 1998). Many motivations are same found in women and men entrepreneurs. Educated, experienced and professional women are encouraged for managing their own business instead of depending upon the salaried employees. In industrial sector trained women can utilize their talents to increase the productivity. Sustainable development requires the empowerment of entrepreneur women to achieve the goals in prescribed areas. For entrepreneurial developments other sources are the newsletters, mentoring, exhibitions and trade fairs. For the rapid growth and development, the entrepreneurship must be promoted among the women and it is also a short cut to achieve the targeted goals (Thamaraiselv, 2009).
10.0 Business Models and Market
In emergence of markets business models play a very important as these are the mechanisms to integrate the individual's firms value chain. The implementation of a business model needs the integration of resources, partners, suppliers and customers into a cooperative network that arise from the market circumstances (Leibold et al., 2002). These elements are co-related and influence each other. Sarasvathy and Dew (2005) have suggested that entrepreneurial experiments produce the market incentives with business models through effectuation. When new markets are emerged, it becomes impossible for the entrepreneurs to analyze the all resource arrangements. In presence of multiple opportunities the entrepreneurs set an initial hypothesis of market and a model is also developed by them. In this way many entrepreneurs engage and work on the iterative process of testing of market hypothesis with the stakeholders; business models are crystallized and new markets are created. Through all this process firms are on the board and commit the enterprise along with other contingencies and determine the new opportunities created (Sarasvathy & Dew, 2005: 543).
11.0 Leadership and Entrepreneurship
What are the qualities of the entrepreneur leadership? What are the factors which differentiate the successful entrepreneur leader from those who attempt the entrepreneurship? The comparison of the characteristics of the successful proven entrepreneurs and those who endeavor to become the same successful entrepreneurs is made. An entrepreneur leadership having the knowledge associated with entrepreneurial success and also programs are started to enhance the prospects of success for the ambitious entrepreneurs. Foundational knowledge is equally must to develop an effective leadership training and growth of modern ventures when they are undertaken. For the successful entrepreneur leadership the leadership styles are vital factors. The leadership competencies are necessary to enhance the contribution to an organization. For the completion of a leader entrepreneurship the most competent changes of those starting the process of entrepreneurial endeavors and those of achieving the success are required.
12.0 Young Entrepreneurship
Start up of the business ventures have been an issue for last several decades. Job creation is fostered by the business creation which contributes to total wealth and economy. Many small firms required to start and survive because managers and owners encounter many problems during this process. Owners of young business firms need the help to assist them which results the strengthening of companies. The study of young business, problems and solution and role of young entrepreneur individuals with 35 years or less age is interpreted at the time of start up of new business. Young firms faced the problem of business management since last three decades and approached the problem with different perspectives. As we know that evolution of an organization depends upon the capability of its owner-manager to resolve the issues inherent at the every stage of its growth. On these occasions young entrepreneur can assure the profitability of these ventures. The problem at the start up and growth stages are related to managerial competencies. Large numbers of programs are developed to assist the young entrepreneurs to minimize the failures and promoting the managerial competencies in business.
In this report a positive link of the entrepreneurship and innovations in different areas is grounded on the entrepreneur's activities. Literature has supported to draw the applications of the entrepreneurship to solve the issues which hinder the economic growth and innovations in business growth. Wennekers and Thurik have well organized the relationship of the entrepreneurship and economic growth. Most important applications of the entrepreneurship with innovative approach are revealed in this report. This report looks the different traits of the entrepreneur and their importance to boost the self-owned as well as managerial-owned business. Challenges and issues of the entrepreneurship are also part of this report. It is also told that women controlled business are small in size due to their desires to keep their hold and manage the business firms. Characteristics of the successful entrepreneur leader and those who attempt the entrepreneurship are based on the facts of entrepreneurship training and their outcomes. Finally, it is focused that how young entrepreneurship is helpful to start up the business and ways how a young entrepreneur can assist the owner manager to solve the issues at every stage of the development of firms.
Recommendations and Future Research
This section of the paper describes the identifications of several opportunities in the future research and limitation of this research. We have found that this research needs more enhancement and extensive empirical work to test the conclusions, types of entrepreneurs, innovations and strategies. Another research is also required, for instance a survey may be conducted in large population of entrepreneurs and industrial sector. A new typology of entrepreneurs and innovations demand the further research to validate that entrepreneurship and innovations are equally effective in owned business. For the future work entrepreneur can play very crucial role to overcome the innovating barriers and other factors which slow down the innovation process. In future research the factors which hinder or foster the sustainable development must be brought into study. This concept of sustainable entrepreneurship considers the strategic, structural and cultural issues of innovations.