The concept of entrepreneurship is multifaceted. There are 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 economic perspective rests on certain economic variables including innovation, risk bearing, and resource mobilization.
Innovation/Creativity Within this approach, entrepreneurs are those whom execute new combination of productive resources. The key ingredient, the carrying out of new content from Discussagile combination (or innovation) distinguishes entrepreneurs from non-entrepreneurs. While new venture creation appears as the most prevalent form of entrepreneurship, there exist other kinds. Entrepreneurship also involves the initiation of changes within the form of subsequent expansion within 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 use of organization creation as criterion for entrepreneurship. It's been argued that organizations such as political parties, associations and social groups often be created by people who 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 is evidenced by attempts to apply entrepreneurial thinking to contemporary team-oriented work environment strategies. Members of such groups - political parties, associations and social groups - as such, could possibly be called entrepreneurial teams. Besides, activities inherent in such groups have flourished at this point, and also are increasingly being described as social entrepreneurship.
Risk Taking This is another financial variable upon which the financial perspective revolves. Risk taking distinguishes entrepreneurs from non-entrepreneurs. Generally, 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 such as 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 quest for opportunities with the entrepreneur playing the role of an opportunity identifier. This way, entrepreneurs are distinguished by their ability 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 determined by resource mobilization, risk taking, and innovation. Beyond the above-mentioned financial variables, entrepreneurship can also be viewed based upon a set of personal characteristics, motives and incentives of the actor within the entrepreneurship act. This is the psychological perspective, the topic of a future article. Along with the psychological perspective, we shall also examine the process and small business perspectives.
The economic perspective rests on certain economic variables including innovation, risk bearing, and resource mobilization.
Innovation/Creativity Within this approach, entrepreneurs are those whom execute new combination of productive resources. The key ingredient, the carrying out of new content from Discussagile combination (or innovation) distinguishes entrepreneurs from non-entrepreneurs. While new venture creation appears as the most prevalent form of entrepreneurship, there exist other kinds. Entrepreneurship also involves the initiation of changes within the form of subsequent expansion within 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 use of organization creation as criterion for entrepreneurship. It's been argued that organizations such as political parties, associations and social groups often be created by people who 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 is evidenced by attempts to apply entrepreneurial thinking to contemporary team-oriented work environment strategies. Members of such groups - political parties, associations and social groups - as such, could possibly be called entrepreneurial teams. Besides, activities inherent in such groups have flourished at this point, and also are increasingly being described as social entrepreneurship.
Risk Taking This is another financial variable upon which the financial perspective revolves. Risk taking distinguishes entrepreneurs from non-entrepreneurs. Generally, 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 such as 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 quest for opportunities with the entrepreneur playing the role of an opportunity identifier. This way, entrepreneurs are distinguished by their ability 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 determined by resource mobilization, risk taking, and innovation. Beyond the above-mentioned financial variables, entrepreneurship can also be viewed based upon a set of personal characteristics, motives and incentives of the actor within the entrepreneurship act. This is the psychological perspective, the topic of a future article. Along with the psychological perspective, we shall also examine the process and small business perspectives.