10 mars 2018 ~ 0 Commentaire

Entrepreneurship – What’s It ?

Entrepreneurship - What's It ? idea-to-startup


Entrepreneurship is the practice of designing, launching and running a new company, which is often originally a little company. The men and women who make these businesses are called entrepreneurs.

Entrepreneurship has been described as the « capability and willingness to grow, organize and manage a business enterprise along with any of its risks so as to create a profit ». While definitions of entrepreneurship typically revolve around the launching and running of businesses, due to the high risks involved with establishing a startup, a significant proportion of startup companies have to close because of « lack of financing, poor business decisions, an economic crisis, lack of market demand–or a combination of all them.

Entrepreneurship is the action of becoming an entrepreneur, or « 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 an enterprise. Entrepreneurship is the process by which an individual or a team identifies a business opportunity and acquires and deploys the essential resources needed for its exploitation.

Early 19th century French economist Jean-Baptiste Say provided a broad definition of entrepreneurship, stating that it « shifts economic resources out of an area of lower and into a place of higher productivity and higher yield ». Entrepreneurs create something new, something different–they change or transmute values. Regardless of the business size, big or little, they can partake in entrepreneurship opportunities. The chance requires four standards.

First, there needs to be opportunities or scenarios to recombine resources to generate profit. Second, entrepreneurship requires differences between people, such as preferential access to certain individuals or the capability to comprehend information about opportunities. Third, taking on risk is quite necessary. Fourth, the entrepreneurial process demands the organization of resources and people.

The entrepreneur is a element in microeconomics and also the study of entrepreneurship reaches into the work of Richard Cantillon and Adam Smith in the late 17th and early 18th centuries. But, entrepreneurship was mostly ignored theoretically before the late 19th and early 20th centuries and empirically before a profound resurgence in economics and business since the late 1970s. From the 20th century, the understanding of entrepreneurship owes considerably to the work of economist Joseph Schumpeter from the 1930s and other Austrian economists such as Carl Menger, Ludwig von Mises and Friedrich von Hayek.

According to Schumpeter, an entrepreneur is someone who is willing and able to convert a new idea or innovation into a successful invention. Entrepreneurship employs what Schumpeter called « the gale of creative destruction » to substitute in whole or in part poor innovations across markets and businesses, simultaneously producing new products such as new business models. In this manner, creative destruction is mostly responsible for its dynamism of industries and long-run financial growth.

The supposition that entrepreneurship leads to economic development is an interpretation of the residual in endogenous growth theory and as this is hotly debated in academic economics. An alternative explanation typified by Israel Kirzner implies that the majority of innovations may be more incremental improvements such as the replacement of paper with plastic in the creating of drinking straws.


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