The 's Theory Of Entrepreneurship

Entrepreneurship is the activity of creating a new business or enterprise. It is an essential and significant action in the growing job market (Bednarzik, 2000). Entrepreneurship has become important to all the countries whether they developed or developing ones. It is a basis of economic growth and employment creation (Thurik, Carree, Van Stel, Audretsch, 2008). It involves opportunity recognition or creation, collecting resources to track the opportunity, and managing actions that bring a new venture into existence. Some ventures are complete start-ups, while other ventures are pursued within an existing organization (Enz and Harrison, 2010). Entrepreneurs accept the personal financial risks that drive with having their own business. On the other hand, entrepreneurs benefit directly from the

- One who creates a new business in the face of risk and uncertainty for

Next, when Israel Kirzner would examine Startup America he would approve of its focus on entrepreneurship in America, however, he would find flaws in the methods that Startup America uses. First, he would like how Startup America concentrated on promoting entrepreneurship, as he also believes it is directly correlated to economic development. In Kirzner’s article, “The Alert and Creative Entrepreneur”, he says, “ Successful entrepreneurship plays an enormously significant role in driving economic development, growth, an in the achievement of the prosperous economy”(1). Clearly, as stated in his article, Kirzner understands the significance of successful entrepreneurship and how it can impact the economy, therefore, he wants to find ways to promote entrepreneurship and increase its success, which is exactly what Startup America is doing. Although, Kirzner would agree with the philosophy of Startup America, he would dislike how it prioritizes everything. Instead of prioritizing, Kirzner would call for clear and equal rules, which would produce equality throughout the economy. Basically, Kirzner would find that Startup

Through fresh innovative and creative ideas we have seen how these different concepts and ideas change the business environment. Entrepreneurship plays a role in the economy and can result in the growth and development of the economy in a country. This essay will be discussing the different aspects on what Entrepreneurship is, The Role it plays in the economy and the different type Entrepreneurial businesses involved in the growth and development of the economy of the country. Entrepreneurship will help the economy by providing more job opportunities, creating new wealth and can reduce unemployment . It is clear that there is positive relationship between Entrepreneurship and Economic growth; this link will be discussed in the essay.

But what exactly does it all mean for entrepreneurship? It means that in order for the company to stay profitable, it has to keep in mind that if they go on producing their good unchanged, the same as it was first presented, it will certainly become less consumed by customers, as the better-developed substitutes will occur that will be more attractive for consumption. Just like the founder of Microsoft company Bill Gates (2005) has stated in one of his interviews “…we are always saying to ourselves: We have to innovate. We 've got to come up with that breakthrough.” This quote confirms that for Microsoft innovation is part of their work, otherwise they would not be doing as well as they doing now.

Entrepreneurship is difficult to define throughout its history research. Even nowadays, this concept is still a debatable point (Rajendra, et al., 2017). Based on four decades of research, Gartner (1988) concludes that entrepreneurs are founders of new firms. Shane and Venkataraman (2000) consider entrepreneurship as “a new venture’s risk-taking endeavor seeking an opportunity” and Fortunato (2014) adds innovative value into the concept of entrepreneurship. Thus, research on the definition of entrepreneurship continue. According to those diverse views, I will interpret six unique entrepreneurial characteristics and theoretically analyze each one. Risk taker, need for achievement and proactivity as my strengthens will be illustrated with my experience. Innovativeness, internal locus of control and tolerance for ambiguity are my weaknesses, thus I will describe relevant successful Entrepreneurs’ experiences.

The main hypothesis of the economic theory of entrepreneurship is that in the economy entrepreneurship contributes to production through the combination of the existing productive factors. Innovation and entrepreneurship are found to have positive economic effects mainly in terms of employment opportunities, taxation revenues and economic output. The measurements of these positive effects provide the basis of international comparisons. The contemporary theories on firm entrepreneurship built on the contributions of Schumpeter (see Appendix 1 on definitions of entrepreneur and entrepreneurship) who focused on the significance of the innovative entrepreneur being the main force moving the economy forward based on exiting

The economist Joseph Schumpeter focused on the transformation of the work of entrepreneurs in innovation and evolution generation. He highlighted entrepreneurship as vital for 'creative destruction'. Peter Drucker, the most renowned contemporary management thinker on the topic of business and management, brought this perception further, characterizing the entrepreneur as a person who is very ambitious for changing, reacting to and analyzing the possible opportunities inside an environment. Entrepreneurship is the principal idea for increasing economic activity and employment probabilities in all societies. Entrepreneurship is understood as a particular surrounding, depending not on a single dominant factor but rather on 'a group of factors' on individual, societal and national levels (Nandamuri at all,

Israel Kirzner and Joseph Schumpeter were both great theorists known for their different views on entrepereneusrship.in this essay we are comparing and contrasting the theories of both Schumpeter and Kirzner, and we are also going to determine whether their arguments are right and get further insights on entrepreneurship as described by the two theorists.

Beside Schumpeterian entrepreneurship theory, William Baumol (1990) also gave us a viewpoint that entrepreneur’s job is to making innovation, which would means the technological progress and growth. And entrepreneur would heavily influence the dissemination of a new technology. The economy will more productive if the new technology is used worldwide. He insisted that entrepreneurial talent and motivational mechanisms are important in successful economy, and entrepreneur can be trained. Moreover, in his point, entrepreneurs and the market mechanism with its pricing process helps each other to run in the economy.

This school sees strategy formation as a visionary process and is fell under the descriptive school of strategic management. The chief architect of the strategy is the CEO of a company. This school took formal leadership seriously and CEO is responsible for strategy formulation. It stressed on mental state and processes such as instinctive knowledge, belief, wisdom, experience and insight of a single leader. The leader should be visionary in formulating strategy. The entrepreneurial school promotes strategy as a process which has a clear image and sense of direction which can be termed as a vision. Entrepreneurial strategy often occurs in startup companies and organizations in trouble and needing a

Schumpeter defines innovation as “new combinations” of existing resources. He called the work of combination “the entrepreneurial function” which is to be accomplished by entrepreneurs. One major reason for the invaluable role played by entrepreneurs to make sure that innovation gained ground was the widespread resistance to change in the society. Thus, the individual entrepreneur has to curve his position in the market so as to succeed in his venture. (Fagerberg 2006). The purpose of carrying out of new combinations of resources is to

As it stands, entrepreneurship as a whole in Canada is quite strong, however, there is always room for improvement. This report has been compiled with the intention to evaluate the current state of entrepreneurship in Canada, finding where our strengths and weaknesses lie. After which, an assessment of the areas for improvement will be made, along with recommendations as to what the Canadian government can do about improving the entrepreneurial landscape.

Ahmad and Hoffmann (2008), summarise the role of entrepreneurship from different perspective; defining entrepreneurship as the mind-set and process to create and develop economic activity by blending risk-taking (with Knights), creativity (with Kirzner) and innovation (with Schumpeter) with sound management, within a new or an existing organization. However, the multidimensional aspects of entrepreneurship make it particularly difficult to find a measure that covers all of these dimensions. Therefore, measuring entrepreneurship has occupied scholars for many years, such ambiguity in the understanding of entrepreneurship is mainly ascribed to the dynamic and complicated nature of entrepreneurship (Baumol, 2002). Frequently used measures are, SME’s, Self-employment, Business Ownership, and New venture creation.

Schumpeter denoted entrepreneur as a key in the economic growth and entrepreneurial process as a prime element in the progress and advancement of economy. Again he stated that entrepreneurship is an essential element for the development of any economy and economic and political framework condition would not affect the growth.