10 mars 2018 ~ 0 Commentaire

Entrepreneurship – A Brief Introduction

Entrepreneurship - A Brief Introduction entrepreneurship-for-kids


Entrepreneurship is the practice of designing, launching and running a new business, which is often originally a small business. The men and women who create these businesses are known as entrepreneurs.

Entrepreneurship was described as the « capability and willingness to develop, arrange and manage a company venture alongside any of its risks in order to create a profit ». While definitions of entrepreneurship normally revolve around the start and running of companies, due to the high risks involved with launching a start-up, a significant proportion of startup businesses must close because of « lack of financing, poor business decisions, an economic crisis, lack of market demand–or a mixture of all them.

Entrepreneurship is the action of being an entrepreneur, or even « an owner or manager of a business enterprise who makes money through risk and initiative ». Entrepreneurs act as supervisors and oversee the launch and expansion of a venture. Entrepreneurship is the process by which an individual or a staff identifies a business opportunity and acquires and deploys the essential resources required for its exploitation.

Early 19th century French economist Jean-Baptiste Say provided a broad definition of entrepreneurship, saying that it « shifts economic resources out of an area of lower and into an area of higher productivity and higher return ». Entrepreneurs create something fresh, something different–they change or transmute values. Irrespective of the firm size, big or small, they can partake in entrepreneurship opportunities. Four standards are required by the chance to become a entrepreneur.

First, there needs to be opportunities or situations to recombine tools to generate profit. Second, entrepreneurship requires differences between individuals, such as accessibility to certain people or the ability to recognize information about opportunities. Third, taking on risk is a necessary. Fourth, the entrepreneurial process requires the organization of resources and people.

The entrepreneur is a factor in microeconomics and also the study of entrepreneurship reaches into the job of Richard Cantillon and Adam Smith in the late 17th and early 18th centuries. However, entrepreneurship was largely ignored theoretically until the late 19th and early 20th centuries and empirically until a deep resurgence in economics and business since the late 1970s. In the 20th century, the understanding of entrepreneurship owes considerably to the work of economist Joseph Schumpeter in the 1930s and other Austrian economists like Carl Menger, Ludwig von Mises and Friedrich von Hayek.

According to Schumpeter, an entrepreneur is someone who’s willing and able to convert a new idea or innovation into a successful innovation. Entrepreneurship employs what Schumpeter called « the gale of creative destruction » to replace in whole or in part inferior innovations across markets and businesses, simultaneously creating new products including new business models. This way, creative destruction is mostly responsible for the dynamism of businesses and long-term economic growth.

The supposition that entrepreneurship results in economic growth is an interpretation of the remaining in endogenous growth theory and as such is hotly debated in academic economics. An alternate description posited by Israel Kirzner implies that nearly all innovations may be much more incremental improvements such as the replacement of paper using plastic in the creating of drinking straws.


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