In the 20th century, the understanding of entrepreneurship owes much to the work of economist Joseph Schumpeter in the s and other Austrian economists such as Carl Menger , Ludwig von Mises and Friedrich von Hayek. According to Schumpeter, an entrepreneur is a person who is willing and able to convert a new idea or invention into a successful innovation.
Entrepreneurship employs what Schumpeter called "the gale of creative destruction" to replace in whole or in part inferior innovations across markets and industries, simultaneously creating new products including new business models. In this way, creative destruction is largely responsible for the dynamism of industries and long-run economic growth. The supposition that entrepreneurship leads to economic growth is an interpretation of the residual in endogenous growth theory and as such is hotly debated in academic economics.
An alternate description posited by Israel Kirzner suggests that the majority of innovations may be much more incremental improvements such as the replacement of paper with plastic in the making of drinking straws. The exploitation of entrepreneurial opportunities may include: Economist Joseph Schumpeter — saw the role of the entrepreneur in the economy as " creative destruction " — launching innovations that simultaneously destroy old industries while ushering in new industries and approaches.
For Schumpeter, the changes and "dynamic disequilibrium brought on by the innovating entrepreneur [were] the norm of a healthy economy ". Entrepreneurship may operate within an entrepreneurship ecosystem which often includes:. In the s, usage of the term "entrepreneurship" expanded to include how and why some individuals or teams identify opportunities, evaluate them as viable, and then decide to exploit them.
Entrepreneurs tend exhibit positive biases towards finding new possibilities and seeing unmet market needs, and a tendency towards risk-taking that makes them more likely to exploit business opportunities.
The word first appeared in the French dictionary entitled Dictionnaire Universel de Commerce compiled by Jacques des Bruslons and published in Cantillon considered the entrepreneur to be a risk taker who deliberately allocates resources to exploit opportunities in order to maximize the financial return.
Jean-Baptiste Say also identified entrepreneurs as a driver for economic development, emphasizing their role as one of the collecting factors of production allocating resources from less to fields that are more productive.
Both Say and Cantillon belonged to French school of thought and known as the physiocrats. This institution was introduced in after a period of so-called freedom of trade Gewerbefreiheit , introduced in in the German Reich. However, proof of competence was not required to start a business. In the 20th century, entrepreneurship was studied by Joseph Schumpeter in the s and other Austrian economists such as Carl Menger , Ludwig von Mises and Friedrich von Hayek.
While the loan from French of the word "entrepreneur" dates to the , the term "entrepreneurship" was coined around the s. According to Schumpeter, an entrepreneur is willing and able to convert a new idea or invention into a successful innovation. The idea that entrepreneurship leads to economic growth is an interpretation of the residual in endogenous growth theory [ clarification needed ] and as such continues to be debated in academic economics.
An alternate description by Israel Kirzner suggests that the majority of innovations may be incremental improvements such as the replacement of paper with plastic in the construction of a drinking straw that require no special qualities.
For Schumpeter, entrepreneurship resulted in new industries and in new combinations of currently existing inputs.
Schumpeter's initial example of this was the combination of a steam engine and then current wagon making technologies to produce the horseless carriage. In this case, the innovation i.
It did not immediately replace the horse-drawn carriage, but in time incremental improvements reduced the cost and improved the technology, leading to the modern auto industry. Despite Schumpeter's early 20th-century contributions, the traditional microeconomic theory did not formally consider the entrepreneur in its theoretical frameworks instead of assuming that resources would find each other through a price system. In this treatment, the entrepreneur was an implied but unspecified actor, consistent with the concept of the entrepreneur being the agent of x-efficiency.
For Schumpeter, the entrepreneur did not bear risk: Schumpeter believed that the equilibrium was imperfect. Schumpeter demonstrated that the changing environment continuously provides new information about the optimum allocation of resources to enhance profitability. Some individuals acquire the new information before others and recombine the resources to gain an entrepreneurial profit. Schumpeter was of the opinion that entrepreneurs shift the production possibility curve to a higher level using innovations.
Initially, economists made the first attempt to study the entrepreneurship concept in depth. In the s, entrepreneurship has been extended from its origins in for-profit businesses to include social entrepreneurship , in which business goals are sought alongside social, environmental or humanitarian goals and even the concept of the political entrepreneur.
Entrepreneurs are leaders willing to take risk and exercise initiative, taking advantage of market opportunities by planning, organizing and deploying resources,  often by innovating to create new or improving existing products or services. According to Paul Reynolds, founder of the Global Entrepreneurship Monitor , "by the time they reach their retirement years, half of all working men in the United States probably have a period of self-employment of one or more years; one in four may have engaged in self-employment for six or more years.
Participating in a new business creation is a common activity among U. Entrepreneurial activities differ substantially depending on the type of organization and creativity involved. Entrepreneurship ranges in scale from solo, part-time projects to large-scale undertakings that involve a team and which may create many jobs.
Many "high value" entrepreneurial ventures seek venture capital or angel funding seed money in order to raise capital for building and expanding the business. Beginning in , an annual " Global Entrepreneurship Week " event aimed at "exposing people to the benefits of entrepreneurship" and getting them to "participate in entrepreneurial-related activities" was launched.
The term "entrepreneur" is often conflated with the term " small business " or used interchangeably with this term. While most entrepreneurial ventures start out as a small business, not all small businesses are entrepreneurial in the strict sense of the term. Many small businesses are sole proprietor operations consisting solely of the owner—or they have a small number of employees—and many of these small businesses offer an existing product, process or service and they do not aim at growth.
In contrast, entrepreneurial ventures offer an innovative product, process or service and the entrepreneur typically aims to scale up the company by adding employees, seeking international sales and so on, a process which is financed by venture capital and angel investments. In this way, the term "entrepreneur" may be more closely associated with the term " startup ". Successful entrepreneurs have the ability to lead a business in a positive direction by proper planning, to adapt to changing environments and understand their own strengths and weakness.
The term "ethnic entrepreneurship" refers to self-employed business owners who belong to racial or ethnic minority groups in the United States and Europe. A long tradition of academic research explores the experiences and strategies of ethnic entrepreneurs as they strive to integrate economically into mainstream U. Classic cases include Jewish merchants and tradespeople in large U.
The American-born British economist Edith Penrose has highlighted the collective nature of entrepreneurship. She mentions that in modern organizations, human resources need to be combined in order to better capture and create business opportunities. According to Christopher Rea and Nicolai Volland, cultural entrepreneurship is "practices of individual and collective agency characterized by mobility between cultural professions and modes of cultural production", which refers to creative industry activities and sectors.
In their book The Business of Culture , Rea and Volland identify three types of cultural entrepreneur: A feminist entrepreneur is an individual who applies feminist values and approaches through entrepreneurship, with the goal of improving the quality of life and well-being of girls and women.
Feminist entrepreneurs are motivated to enter commercial markets by desire to create wealth and social change, based on the ethics of cooperation, equality and mutual respect. Social entrepreneurship is the use of the by start up companies and other entrepreneurs to develop, fund and implement solutions to social, cultural, or environmental issues. Social entrepreneurship typically attempts to further broad social, cultural, and environmental goals often associated with the voluntary sector  in areas such as poverty alleviation, health care and community development.
At times, profit-making social enterprises may be established to support the social or cultural goals of the organization but not as an end in itself. For example, an organization that aims to provide housing and employment to the homeless may operate a restaurant , both to raise money and to provide employment for the homeless people. A nascent entrepreneur is someone in the process of establishing a business venture. In this observation, the nascent entrepreneur can be seen as pursuing an opportunity , i.
Its prescience and value cannot be confirmed ex ante but only gradually, in the context of the actions that the nascent entrepreneur undertakes towards establishing the venture,  Ultimately, these actions can lead to a path that the nascent entrepreneur deems no longer attractive or feasible, or result in the emergence of a viable business. In this sense, over time, the nascent venture can move towards being discontinued or towards emerging successfully as an operating entity.
The distinction between the novice, serial and portfolio entrepreneurs is an example of behavior-based categorization . Other examples are the related studies by  ,  on start-up event sequences. Nascent entrepreneurship that emphasizes the series of activities involved in new venture emergence  ,  ,  rather than the solitary act of exploiting an opportunity.
With this research, scholars will be able to begin constructing a theory of the micro-foundations of entrepreneurial action. Scholars interested in nascent entrepreneurship tend to focus less on the single act of opportunity exploitation and more on the series of actions in new venture emergence  ,  , . Indeed, nascent entrepreneurs undertake numerous entrepreneurial activities, including actions that make their businesses more concrete to themselves and others.
For instance, nascent entrepreneurs often look for and purchase facilities and equipment; seek and obtain financial backing, form legal entities , organize teams; and dedicate all their time and energy to their business .
Project entrepreneurs are individuals who are engaged in the repeated assembly or creation of temporary organizations. Industries where project-based enterprises are widespread include: A project entrepreneur who used a certain approach and team for one project may have to modify the business model or team for a subsequent project. Project entrepreneurs are exposed repeatedly to problems and tasks typical of the entrepreneurial process.
Resolving the first challenge requires project-entrepreneurs to access an extensive range of information needed to seize new investment opportunities.
Resolving the second challenge requires assembling a collaborative team that has to fit well with the particular challenges of the project and has to function almost immediately to reduce the risk that performance might be adversely affected.
Another type of project entrepreneurship involves entrepreneurs working with business students to get analytical work done on their ideas. The term "millennial entrepreneur" refers to a business owner who is affiliated with the generation that was brought up using digital technology and mass media—the products of Baby Boomers , those people born during the s and early s. Also known as Generation Y , these business owners are well equipped with knowledge of new technology and new business models and have a strong grasp of its business applications.
There have been many breakthrough businesses that have come from millennial entrepreneurs such as Mark Zuckerberg , who created Facebook. The comparison between millennials who are self-employed and those who are not self-employed shows that the latter is higher.
The reason for this is because they have grown up in a different generation and attitude than their elders. Some of the barriers to entry for entrepreneurs are the economy, debt from schooling and the challenges of regulatory compliance. The entrepreneur is commonly seen as an innovator—a designer of new ideas and business processes.
Theorists Frank Knight  and Peter Drucker defined entrepreneurship in terms of risk-taking. The entrepreneur is willing to put his or her career and financial security on the line and take risks in the name of an idea, spending time as well as capital on an uncertain venture. However, entrepreneurs often do not believe that they have taken an enormous amount of risks because they do not perceive the level of uncertainty to be as high as other people do.
Knight classified three types of uncertainty:. Entrepreneurship is often associated with true uncertainty, particularly when it involves the creation of a novel good or service, for a market that did not previously exist, rather than when a venture creates an incremental improvement to an existing product or service. The ability of entrepreneurs to work closely with and take advice from early investors and other partners i. Indeed, measures of coachability are not actually predictive of entrepreneurial success e.
This research also shows that older and larger founding teams, presumably those with more subject expertise, are less coachable than younger and smaller founding teams. According to Shane and Venkataraman, entrepreneurship comprises both "enterprising individuals" and "entrepreneurial opportunities", so researchers should study the nature of the individuals who identify opportunities when others do not, the opportunities themselves and the nexus between individuals and opportunities.
For example, higher economic inequality tends to increase entrepreneurship rates at the individual level, suggesting that most entrepreneurial behavior is based on necessity rather than opportunity. The ability of entrepreneurs to innovate relates to innate traits, including extroversion and a proclivity for risk-taking. Entrepreneurs tend to have the ability to see unmet market needs and underserved markets.
While some entrepreneurs assume they can sense and figure out what others are thinking, the mass media plays a crucial role in shaping views and demand. Differences in entrepreneurial organizations often partially reflect their founders' heterogenous identities. Fauchart and Gruber have classified entrepreneurs into three main types: Darwinians , communitarians and missionaries.
These types of entrepreneurs diverge in fundamental ways in their self-views, social motivations and patterns of new firm creation. Entrepreneurs need to practice effective communication both within their firm and with external partners and investors in order to launch and growth a venture and enable it to survive. An entrepreneur needs a communication system that links the staff of her firm and connects the firm to outside firms and clients.
Entrepreneurs should be charismatic leaders , so they can communicate a vision effectively to their team and help to create a strong team.
Communicating a vision to followers may be well the most important act of the transformational leader. According to Baum et al.
Entrepreneurial leaders must speak and listen to articulate their vision to others. Communication is pivotal in the role of entrepreneurship because it enables leaders to convince potential investors, partners and employees about the feasibility of a venture.
The Communication Accommodation Theory posits that throughout communication people will attempt to accommodate or adjust their method of speaking to others.
Rank argues that entrepreneurs need to be able to intensify the advantages of their new product or service and downplay the disadvantages in order to persuade others to support their venture. Research from found links between entrepreneurship and historical sea piracy. In this context, the claim is made for a non-moral approach to looking at the history of piracy as a source of inspiration for entrepreneurship education  as well as for research in entrepreneurship  and business model generation.
Stanford University economist Edward Lazear found in a study that variety in education and work experience was the most important trait that distinguished entrepreneurs from non-entrepreneurs  A study by Uschi Backes-Gellner of the University of Zurich and Petra Moog of the University of Siegen in Germany found that a diverse social network was also important in distinguishing students that would go on to become entrepreneurs.
Studies show that the psychological propensities for male and female entrepreneurs are more similar than different. Empirical studies suggest that female entrepreneurs possess strong negotiating skills and consensus-forming abilities. Entrepreneurs may also be driven to entrepreneurship by past experiences. If they have faced multiple work stoppages or have been unemployed in the past, the probability of them becoming an entrepreneur increases  Per Cattell's personality framework, both personality traits and attitudes are thoroughly investigated by psychologists.
This affected women working in business; however, it also served as a push to those involved in the entrepreneurial world. More women began to start their own businesses, looking to survive during this time of hardship. During WWII, many women entered the workforce, filling jobs that men had left behind to serve in the military. Some women, of their own accord, took these jobs as a patriotic duty while others started businesses of their own. One of these women was Pauline Trigere , who came to New York from Paris in , started a tailoring business that later turned into a high-end fashion house.
When the war ended, many women still had to maintain their place in the business world; because, many of the men who returned were injured. The Federation of Business and Professional Women's Clubs were sources of encouragement to female entrepreneurs. They often would hold workshops with already established entrepreneurs, such as Elizabeth Arden , who would give advice. During the s, women found themselves surrounded by messages everywhere, stating what their role should be.
Domesticity was the overall public concern and a theme that was highly stressed during this time, and women had to juggle combined home responsibilities and their career. Home-based businesses helped to solve a good part of the problem for those women who worried about being mothers.
Lillian Vernon , while pregnant with her first child, started her own business dealing with catalogs by investing money from wedding gifts and started filling orders right at her kitchen table. Mary Crowley founded Home Decorating and Interiors as a way of helping women to work from home by throwing parties to sell the products right in the comfort of their own home.
In an effort to avoid criticism and lost business from those who did not support women in business, Bette Nesmith , who developed the product "Mistake Out," a liquid that painted over mistakes in typing, would sign her orders B. Smith so no one would know she was a female. From the s to the late s, another change came about when divorce rates rose and many women were forced back into the role of being the sole provider.
This pushed them back into the working world, where they were not well received. When the recession hit, many of these women were the first to be without work.
Once again, the entrepreneurial endeavors of women came to the rescue as an effort of asserting themselves, and aiding other women in being a part of the workforce. The s and s were a time of reaping the benefits from the hard work of women who worked tirelessly for their rightful place in the workforce as employees and entrepreneurs. Martha Stewart and Vera Bradley were among the twenty-first percent women who owned businesses.
The public was also becoming more receptive and encouraging to these female entrepreneurs, acknowledging the valuable contribution they were making to the economy. The National Association of Women Business Owners helped to push Congress to pass the Women's Business Ownership Act in , which would end discrimination in lending and also strike down laws that required married women to acquire their husband's signature for all loans.
In addition, the Act also gave women-owned businesses a chance to compete for government contracts. Another monumental moment for women in business was the appointment of Susan Engeleiter as head of the US government's Small Business Administration in In the late s and throughout the s, there was more of a focus on networking opportunities in the world of female entrepreneurs.
There were many opportunities that came about to help those who were interested in starting up their own businesses. Support groups, organizations for educating the female entrepreneur, and other opportunities like seminars and help with financing came from many different sources, such as the Women's Business Development Center and Count Me In.
Despite all these advances, the female entrepreneurs still fell behind when compared to their male counterparts. As the s came in, the availability of computers and the increasing popularity of the internet gave a much needed boost to women in business. This technology allowed them to be more prevalent in the business world and showcase their skills to their competitors. Even with the increased popularity of women in business, the availability of technology and the support from different organizations, female entrepreneurs today are still struggling.
The economic downturn of did not serve to help them in their quest. However, with the continual attention given to female entrepreneurs and the educational programs afforded to women who seek to start out with their own business ventures, there is much information and help available.
Since , there has been an increase in small and big ventures by women, including one of their biggest obstacles—financing. Studies have shown that successful female entrepreneurs start their businesses as a second or third profession.
The average self-employment rate for women under 25 years old in OECD countries is 7. The number of self-employed women has steadily increased over the past three decades, putting them at an approximate thirty-three percent increase. Many female-owned businesses continue to be home-based operations.
This group made up for about six percent of total women-owned businesses. Children of these female entrepreneurs are expected to boost that number as they contribute to the growing amount of female entrepreneurs. Most women-owned businesses are in wholesale, retail trade, and manufacturing. Female entrepreneurs have also made a name for themselves in professional, scientific, and technical services, as well as in healthcare and social assistance.
In the majority of OECD countries, female entrepreneurs are more likely to work in the services industry than their male counterparts. In , women-owned businesses accounted for 4. That number increased to 2. In , there were about 5. The participation of females in entrepreneurial activities does of course vary in different levels around the world. A recent international study found that women from low to middle income countries such as Russia and the Philippines are more likely to enter early stage entrepreneurship when compared to those of higher income countries such as Belgium , Sweden , and Australia.
A significant factor that may play a role in this disparity can be attributed to the fact that women from low income countries often seek an additional means of income to support themselves and their families. Overall, 40 to 50 percent of all small businesses are owned by women in developing countries. While eastern businesses tend to follow methods based around mutual respect and understanding, western business' expectations are for business leaders to be more ruthless, headstrong, and less sensitive or respectful.
Let's just own it, we have different weapons in our arsenal. According to one study, in there was an approximate million women that were either starting or already running new businesses in various economies all over the world. As far as those who were already established, there was an approximate 98 million. Not only are these women running or starting their own businesses but they are also employing others, so that they are participating in the growth of their respective economies.
A study in India entitled "Barriers of Women Entrepreneurs: A Study in Bangalore Urban District", has concluded that despite all these constraints, successful female entrepreneurs do exist.
But, the socio-cultural environment in which women are born and raised hinders them. For those whose dreams involve using a small business "as a force for social change," entrepreneur Albion offers encouragement and valuable counsel. The second entry in the publisher's Social Venture Network series, this is a guide to leading "a company that reflects your values" and, along the way, building "a better world for us all.
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True to Yourself offers the practical guidance and support to allow us to meet these exhilarating challenges. Would you like to tell us about a lower price? If you are a seller for this product, would you like to suggest updates through seller support? Learn more about Amazon Prime. What do you do when you believe that business should serve the common good, but everyday business pressures—meeting payroll, battling competition, keeping customers and investors happy—are at a fever pitch?
Leading a small business when you measure success more broadly than with a single financial bottom line is no easy task. True to Yourself is a practical guide to doing just that. It provides tools you can use to combine profit with purpose, margin with mission, value with values. Drawing on insightful interviews with seventy-five forward-thinking leaders and his own extensive experiences as an entrepreneurial leader, Mark Albion details five critical leadership practices: Turn your values into value Walk toward the talk Communicate with care Facilitate personal growth Collaborate for greater impact True to Yourself shows how successful businesspeople have put these practices into action, and it provides hands-on exercises to help you integrate them into your own business.
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This article is written like a personal reflection or opinion essay that states a Wikipedia editor's personal feelings about a topic. Please help improve it by rewriting it in an encyclopedic style. (December ) (Learn how and when to remove this template message) Female entrepreneurs are said to encompass approximately 1/3 of all entrepreneurs .
Essay on Women Empowerment in India! The subject of empowerment of women has becoming a burning issue all over the world including India since last few decades. Many agencies of United Nations in their reports have emphasized that gender issue is to be given utmost priority. It is held that women.
October (This essay is derived from a talk at the Startup School. How do you get good ideas for startups?That's probably the number one question people ask me. Essay on Women Empowerment In India. This is the article by Prof. V.P. Gupta, Director, Rau’s IAS Study Circle, New Delhi. Women Empowerment itself elaborates that Social Rights, Political Rights, Economic stability, judicial strength and all other rights should be also equal to comedyq.ga should be no discrimination between men and .
Entrepreneurship is the process of designing, launching and running a new business, which is often initially a small comedyq.ga people who create these businesses are called entrepreneurs. [need quotation to verify]Entrepreneurship has been described as the "capacity and willingness to develop, organize and manage a business venture . Berry College is an independent, coeducational college with fully accredited arts, sciences and professional programs plus specialized graduate programs in education and business administration. The college is recognized nationally for the quality and value of its educational experience.