The concept of entrepreneurship is multifaceted. You will discover varied, diverse and somewhat contradictory sets of definitions of the term. As a way out the definitional dilemma, this article aims to explain the economic perspective on entrepreneurship.
The financial perspective rests on certain financial variables including innovation, risk bearing, and resource mobilization.
Innovation/Creativity Inside this approach, entrepreneurs are people who accomplish new combination of productive resources. The key ingredient, the carrying out of new combination (or innovation) distinguishes entrepreneurs from non-entrepreneurs. While new venture creation appears as the most prevalent type of entrepreneurship, there exist other kinds. Entrepreneurship also involves the initiation of changes within the form of subsequent expansion in the quantity of goods produced, as well as in existing form or structure of organisational relationships.
In the entrepreneurship literature, some scholars have questioned the usage of organization creation as criterion for entrepreneurship. It's been argued that organizations for example political parties, associations and social groups often be created by men and women that are not "entrepreneurs." Interesting as it might sound, the terms entrepreneurship and entrepreneur are already adopted by varied scholars to meet the innovation and spirit of the time. This really is evidenced by attempts to apply entrepreneurial thinking to contemporary team-oriented place of work strategies. Members of such groups - political parties, leadership associations and social groups - as such, may be called entrepreneurial teams. Besides, activities inherent in such groups have flourished presently, and are increasingly being described as social entrepreneurship.
Risk Taking This is another financial variable upon which the economic perspective revolves. Risk taking distinguishes entrepreneurs from non-entrepreneurs. Frequently, entrepreneurs are calculated risk takers. They bear the uncertainty in market dynamics. This notion has its critics and advocates. Entrepreneurs might not necessarily risk her own funds but risk other personal capital for example reputation as well as the possibility of being more gainfully employed elsewhere.
Resource Mobilization here, entrepreneurship is reflected in alertness to perceived profit opportunities in the economy. This implies the allocation of resources in pursuit of opportunities with the entrepreneur playing the role of a chance identifier. This way, entrepreneurs are distinguished by their capability to identify persistent shocks or challenges (of long-term opportunities) to the environment, and then to synthesize the information and take decisive actions based upon it.
This article has conceptualized entrepreneurship based upon resource mobilization, risk taking, and innovation. Beyond the previously discussed economic variables, entrepreneurship also can be viewed based upon a set of personal characteristics, motives and incentives of the actor in the entrepreneurship act. This really is the psychological perspective, the topic of a future article. As well as the psychological perspective, we shall also examine the process and small business perspectives.
The financial perspective rests on certain financial variables including innovation, risk bearing, and resource mobilization.
Innovation/Creativity Inside this approach, entrepreneurs are people who accomplish new combination of productive resources. The key ingredient, the carrying out of new combination (or innovation) distinguishes entrepreneurs from non-entrepreneurs. While new venture creation appears as the most prevalent type of entrepreneurship, there exist other kinds. Entrepreneurship also involves the initiation of changes within the form of subsequent expansion in the quantity of goods produced, as well as in existing form or structure of organisational relationships.
In the entrepreneurship literature, some scholars have questioned the usage of organization creation as criterion for entrepreneurship. It's been argued that organizations for example political parties, associations and social groups often be created by men and women that are not "entrepreneurs." Interesting as it might sound, the terms entrepreneurship and entrepreneur are already adopted by varied scholars to meet the innovation and spirit of the time. This really is evidenced by attempts to apply entrepreneurial thinking to contemporary team-oriented place of work strategies. Members of such groups - political parties, leadership associations and social groups - as such, may be called entrepreneurial teams. Besides, activities inherent in such groups have flourished presently, and are increasingly being described as social entrepreneurship.
Risk Taking This is another financial variable upon which the economic perspective revolves. Risk taking distinguishes entrepreneurs from non-entrepreneurs. Frequently, entrepreneurs are calculated risk takers. They bear the uncertainty in market dynamics. This notion has its critics and advocates. Entrepreneurs might not necessarily risk her own funds but risk other personal capital for example reputation as well as the possibility of being more gainfully employed elsewhere.
Resource Mobilization here, entrepreneurship is reflected in alertness to perceived profit opportunities in the economy. This implies the allocation of resources in pursuit of opportunities with the entrepreneur playing the role of a chance identifier. This way, entrepreneurs are distinguished by their capability to identify persistent shocks or challenges (of long-term opportunities) to the environment, and then to synthesize the information and take decisive actions based upon it.
This article has conceptualized entrepreneurship based upon resource mobilization, risk taking, and innovation. Beyond the previously discussed economic variables, entrepreneurship also can be viewed based upon a set of personal characteristics, motives and incentives of the actor in the entrepreneurship act. This really is the psychological perspective, the topic of a future article. As well as the psychological perspective, we shall also examine the process and small business perspectives.