Intro to entrepreneurship

Characteristics of entrepreneurship

Learning Objectives Identify the characteristics of an entrepreneurial economy and the factors that lead to it Key Takeaways Key Points Entrepreneurship drives economic resources to work efficiently, which positively impacts long-term economic development and growth. What leads a person to strike out on his own and start a business? Prospect Theory Why are some people better at recognizing entrepreneurial opportunities? Why does economic development take place in some areas of the world and not in others? And 3 Why are some entrepreneurs so much more successful than others Baron, a, p. An entrepreneur, however, risked his own reputation and the other gains he could have made by pursuing a different opportunity. Next Page Entrepreneurship is the art of starting a business, basically a startup company offering creative product, process or service. For example, when entrepreneur William J. Is someone an entrepreneur because of what they do or because of how they think? If this would be the case, then there is no reason for an Ellison or Gates to keep expanding their business aggressively after they have made more than billion dollars. Joseph Schumpeter had foreseen this shift almost a century earlier.

Freedom to operate independently is a reward for small business owners. What prevents people from having the lives they want to live right there? He was the first writer to provide a relatively refined meaning for the term entrepreneurship.

Introduction to entrepreneurship development

Managers received a salary and, according to Marshall, fulfilled a different function than either capitalists or entrepreneurs — although in some cases, particularly in smaller firms, one person might be both an entrepreneur and a manager. As with the personality characteristic school of thought before it, the behavioural trait school of thought became increasingly difficult to support Duening, , p. Growth Should a focus on growth be a characteristic of entrepreneurship? Can someone be an entrepreneur without owning their own business? The grain used to make the flour is an even higher order good. The following timeline shows some of the most influential entrepreneurship scholars and the schools of thought French, English, American, German, and Austrian their perspectives helped influence and from which their ideas evolved. This overemphasized the individual and his values, attitudes and personality.

The entrepreneur is generally self-employed, self-motivated, and ambitious and is willing to take chances to meet his or her goals. If entrepreneurship remains as important to the economy as ever, then the continuing failure of mainstream economics to adequately account for entrepreneurship indicates that fundamental principles require re-evaluation.

Introduction to entrepreneurship ppt

There is plenty of information in Internet on local economic development, which is mostly prepared by international donors or multilateral organisations. So what does this course do differently? This overemphasized the individual and his values, attitudes and personality. In other cases, however, the entrepreneur simply discovers a new way to market and sell an existing product or service. Entrepreneurship and Innovation Jeremy Bentham , from the English School of thought, considered entrepreneurs to be innovators. After identifying the 90 attributes, Gartner went back to the entrepreneurs and other experts for help in clustering the attributes into themes that would help summarize what people concerned with entrepreneurship thought about the concept. Specifically, it can assist the field in answering three basic questions it has long addressed: 1 Why do some persons but not others choose to become entrepreneurs? Many entrepreneurs also assume responsibility for hiring and managing employees. The most obvious form of entrepreneurship is that of starting new businesses referred as Startup Company. By the early twentieth century economists had begun to develop more sophisticated theories of entrepreneurship. Key Terms entrepreneur: A person who organizes and operates a business venture and assumes much of the associated risk. He embodied many of the essential characteristics of the entrepreneur.

In the next sections we consider the new research on entrepreneurial personality traits and on entrepreneurial cognitions. Perhaps a person already has been passed over for promotion. Alfred Marshallfrom the English School of thought, was one of the founders of neoclassical economics.

introduction to entrepreneurship slideshare

Introduction to Entrepreneurship The Goals of Entrepreneurs The goals of entrepreneurs are varied and individualized but can include the achievement of independence, financial success, or social change. It appears that the Big Five traits might be of some use in predicting entrepreneurial success.

In recent years, startup has been extended to include social and political forms of entrepreneurial activity.

Intro to entrepreneurship

Entrepreneurship and Innovation Jeremy Bentham , from the English School of thought, considered entrepreneurs to be innovators. The aim of the course is that participants come up with their own ideas on how to promote local economic development. Another current of thought underscores the motivational aspects of personal achievement. To do this in the right way, motivation is required. Provided by: U. At age 16 he began working as a messenger for a telegraph office and quickly earned a series of promotions, becoming superintendent of the Pittsburgh branch of the Pennsylvania Railroad Company before he was Cantillon described entrepreneurs as individuals who generated profits through exchanges. What Motivates an Entrepreneur? If every firm offers the same product without any variation then there is no point of preferring one brand in particular. The following are a few of these attributes: Innovation — Does a person need to be innovative to be considered an entrepreneur? A few—through their innovations—contribute to society as a whole. In the next sections we consider the new research on entrepreneurial personality traits and on entrepreneurial cognitions. He had predicted that the advancement of entrepreneurship, particularly its role in making corporations more systematized and efficient, would ultimately diminish the power of the individual to act with the decisiveness and boldness characteristic of the entrepreneur. However, a strong desire to start a business, combined with a good idea, careful planning, and hard work, can lead to a very engaging and profitable endeavor.

The average entrepreneur or manager of a small business knows his customer base far better than one in a large company.

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Entrepreneurship