The Growth Of The Entrepreneurial Process - 1788 Words

The Entrepreneurial process begins with the perception of the existence of opportunities or situations in which resources can be recombined for a potential profit. Thus entrepreneurs are opportunists, who discover opportunities in the existing market and use them for their benefit. (Shane 2003). Entrepreneurships usually take the form of Small to medium size enterprises usually abbreviated to SMEs. These SMEs are adaptable, grow more rapidly and have higher risks of failure. Entrepreneurship is important to the society as it contributes to the economy in several ways. It contributes by adding changes to the supply and demand side of the market. This change (innovation) brought about by entrepreneurs was observed by an economist J.A. Schumpeter (1934), who, in his The Theory of Economic Development has mentioned it as a form of creative destruction . Apart from their adding economic benefits, SMEs can also save economies from great depression. According to David Birch (1987), there were about 7 million companies, close to 90 percent of which employ fewer than 20 workers. When taken together, these companies provide more jobs than the giants in the list of fortune 500. While some entrepreneurs are praised for their aid in developing the economy, entrepreneurs on the wrong side tend to weaken the economy. Some entrepreneurs start business with the sole aim of making profit and are criticized for their decisions. An example in the current scenario can be the case of MartinShow MoreRelatedOverview Of Schumpeter Denoted Entrepreneur As An Essential Element For The Economic Growth And Entrepreneurial Process1339 Words   |  6 PagesSchumpeter 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. The benefits due to entrepreneurship to community will be greater in those economies where entrepreneurs have flexibility to operate, to expand their ideas, and to obliterateRead MoreThe Theory Of Entrepreneurship As A Key Lever For Growth Restoration And Job Creation1134 Words   |  5 Pages To overcome these difficulties, Greece must embrace entrepreneurship as a key lever for growth restoration and job creation, in the absence of career alternatives and in pursuit of national competitive advantages (Endeavor (2010). The Theory of Entrepreneurship 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), creativityRead MoreRole Of Government As An Entrepreneurial Environment1528 Words   |  7 Pages 1. Introduction Role of Government in creating an entrepreneurial environment Creating suitable conditions for new business to start and thrive, enabling existing firms to grow by developing new products and services in new markets through appropriate tax policies, supportive physical infrastructure, provision for training and information, promoting incubation facilities, research and development facilities and entrepreneurship education are just some of the means by which governments can encourageRead MoreStrategic Issues in Entreprenuerial Ventures1565 Words   |  7 PagesChapter 13 STRATEGIC ISSUES IN ENTREPRENEURIAL VENTURES AND SMALL BUSINESSES The Importance of Small-Business and Entrepreneurial Ventures A. Definition of Small-Business Firms and Entrepreneurial Ventures The most commonly accepted definition of a small business firm is one that employs fewer than 500 people and that generates sales of less than $20 million annually. According to the U.S. Small Business Administration, â€Å"A small business is one which is independently owned and operated,Read MoreThe Effect Of Entrepreneurial Competencies On Skills Innovations Essay1456 Words   |  6 Pages EFFECT OF ENTREPRENEURIAL COMPETENCIES ON SKILLS INNOVATIONS: A CASE STUDY OF PALM OIL BUSINESSES IN UMUOMA COMMUNINTY, IMO STATE 1.0 Introduction Umuoma in Ihitte-Uboma Local government area of Imo State, Nigeria is an agrarian community that depends heavily on the processing of palm fruits for survival. The community in the 1960’s contributed immensely as a foreign exchange earner in the export trade of that era in Nigeria. The local industry has faced a lot of challenges overRead MoreConcept of Entrepreneurship1455 Words   |  6 Pagesfocused on the business process rather than the practitioner. He said that an entrepreneur shifts economic resources out of an area of lower productivity and into one of higher productivity and greater yield. 200 years later confusion still remains over the definitions of ‘entrepreneur’ and ‘entrepreneurship with no single definition existing. Further examples back up this point. In Advanced Entrepreneurship by H. Rwigema and R. Venter the term is described as â€Å"... a process of conceptualising, organisingRead MoreSmall Business Management Essays1535 Words   |  7 Pagesdefinition of the smaller enterprise in terms of measurement of the assets, turnover, profitability and employment from different sectors and countries (Bolton, 1971). 2 What is entrepreneurial small business Throughout Europe, great attention has been paid to the small business area and to the contribution that entrepreneurial small businesses can bring beneficial to transforming the economy (EiM, 1994).The concept of entrepreneurship is often considered with new venture creation and small enterpriseRead MoreCorporate Entrepreneurship: A Case Study of IBM1178 Words   |  5 Pagesorganization is naturally oriented towards a non-entrepreneurial mindset. Firms in high-tech industries need to take a much more active role in entrepreneurship. As an older tech firm, IBM has perhaps been slow to recognize the importance of entrepreneurship in maintaining success, given the rapid pace of change it its core businesses. Verizon has faced a similar situation, and responded by directly encouraging more entrepreneurship to uncover new sources of growth, in direct response to the changes withinRead MoreGlobal Entrepreneurship Monitor ( Gem )860 Words   |  4 Pagesbusiness performance (Ahmad et al 2010). Social norms are known to be one of the most significant factors within the business environment (Hong and Kacperczyk 2009). Owing to the fact that social norms differ across nations and cities, the level of entrepreneurial competencies influenced by culture can be assumed to be different. Therefore, a country comparison between the two countries, UK and Singapore, will be conducted using the Global Entrepreneurship Monitor (GEM). Paul Reynolds and a team of scholarsRead MoreThe Difference Between An Entrepreneur And A Business Owner1681 Words   |  7 Pagesbusiness owners seek a room on growth, and some are satisfied with the current condition. Today, as the phenomenon of globalisation, an interesting idea could transform itself to be a business opportunity if an entrepreneur is keen to. In fact, an entrepreneur could be a small business owner (SBO); however, not every SBO could be seen as an entrepreneur. This essay develops the understanding of the difference between an entrepreneur and a business owner as well as entrepreneurial self-efficacy and its relations