Popular in Course
verified elite notetaker
Popular in Business Management
This 2 page Document was uploaded by an elite notetaker on Monday December 21, 2015. The Document belongs to a course at a university taught by a professor in Fall. Since its upload, it has received 8 views.
Reviews for ENTREPRENEURSHIP-DEFINITION
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 12/21/15
DEFINITION OF ENTREPRENEUR TODAY The concept of an entrepreneur is further refi ned when principles and terms from a business, managerial, and personal perspective are c onsidered. In particular, the concept of entrepreneurship from a personal perspective has been thoroughly explored in this century. Third exploration is reflected in the following three definitions of an entrepreneur: In almost all of the definitions of entreprene urship, there is agreement that we are talking about a kind of behavior that includes: (1) initiative taking, (2) the organizing and reorganizing of social and economic mechanisms to turn resources and situations to practical account, (3) the acceptance of risk or failure. To an economist, an entrepreneur is one who brings resources, labor, materials, and other assets into combinations that make their value greater than befo re, and also one who introduces changes, innovations, and a new order. To a psyc hologist, such a person is typically driven by certain forces the needs to obtain or attain something, to experiment, to accomplish, or perhaps to escape the authority of others. To one businessman, an entrepreneur appears as a threat, an aggressive competitor, whereas to another businessman the same entrepreneur may be an ally, a source of s upply, a customer, or someone who creates wealth for others, as well as finds better ways to ut ilize resources, reduce waste, and produce jobs others are glad to get. Entrepreneurship is the dynamic process of creating incremental wealth. The wealth is created by individuals who assume the major risks in terms of equity, time and/or career commitment or provide value for some produc t or service. The product or se rvice may or may not be new or unique, but value must somehow be infused by the entrepreneur by receiving and locating the necessary skills and resources. Although each of these definitions views entrepreneurs from a slightly different perspective, they all contain similar notions, such as newness, or ganizing, creating, weal th, and risk taking. Yet each definition is somewhat restrictive, sin ce entrepreneurs are found in all professions- education, medicine, research, la w, architecture, engineering, social work, distribution and government. Entrepreneurship is the process of creati ng something new with value by devoting the necessary time and effort, assuming the accompa nying financial, psychic, and social risks, and receiving the resulting rewards of monetary and personal satisfaction and independence. This definition stresses four basi c aspects of being an entrepreneur regardless of the field. First, entrepreneurship involves the cr eation process—creating something new of value. The creation has to have value to the entrepreneur and value to the audience for which it is developed. This audience can be (1) the mark et of organizational buyers for business innovation, (2) the hospital’s administration for a new admitting procedure and software, (3) prospective students for a new course or even college of entrepreneur ship, or (4) the constitu ency for a new service provided by a nonprofit agency. Second, entrepreneurship requires the devotion of the necessary time and effort. Only those going through the entr epreneurial process appreciate the significant amount of time and effort it takes to create something new and make it operational. As one new entrepreneur so succinctly stated, “While I may have worked as many hours in the office while I was in industry, as an entrep reneur I never stop thinking about the business.” Assuming the necessary risks is the third asp ect of entrepreneurship. These ri sks take a variety of forms, depending on the field of effort of the entrep reneur, but usually center around financial, psychological, and social areas. The final part of the definition involves the rewards of being an entrepreneur. The most important of these rewards is independence, followed by personal satisfaction. For profit entrepreneurs, money becomes the indicator of the degree of success. For the person who actually starts his or he r own business, the experience is filled with enthusiasm, frustration, anxiety, and hard work. There is a high failure rate due to such things as poor sales, intense competition, l ack of capital, or lack of mana gerial ability. The financial and emotional risk can also be very high. What, then, causes a person to make this difficult decision? The question can be best explored by looking at the decision process involved in becoming an entrepreneur. Hisrich, PhD, Robert D., Michael P. Peters, PhD and Dean A. Shepherd, PhD. Entrepreneurship. 6 ed. New York: McGraw-Hill Irwin, 2005.
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'