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What do you understand to be the concept of entrepreneurship and why has it become such an important area of focus?

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Introduction

Q2) What do you understand to be the concept of entrepreneurship and why has it become such an important area of focus? The concept of entrepreneurship is often viewed as a function, which involves the exploitation of opportunities, which exist within a market. Such exploitation is most commonly associated with the direction and/or combination of productive inputs. Entrepreneurs usually are considered to bear risk while pursuing opportunities, and often are associated with creative and innovative actions. In addition, entrepreneurs undertake a managerial role in their activities, but routine management of an ongoing operation is not considered to be entrepreneurship. In this sense entrepreneurial activity is fleeting. An individual may perform an entrepreneurial function in creating an organization, but later is relegated to the role of managing it without performing an entrepreneurial role. In this sense, many small-business owners would not be considered to be entrepreneurs. Individuals within organizations (i.e. non-founders) can be classified as entrepreneurs since they pursue the exploitation of opportunities. Thus intrepreneurship is appropriately considered to be a form of entrepreneurship. The concept of an entrepreneur is further refined when principles and terms from a business, managerial, and personal perspective are considered. ...read more.

Middle

(www.1000ventures.com) Assuming the necessary risks is the third aspect of entrepreneurship. These risks take a variety of forms, depending on the field of effort of the entrepreneur, but usually center around financial, psychological, and social areas. The final part involved is the rewards of being an entrepreneur. The most important of these rewards is independence, followed by personal satisfaction. For profit entrepreneurs, money becomes the indicator of the degree of success. For the person who actually starts his or her own business, the experience is filled with enthusiasm, frustration, anxiety, and hard work. There is a high failure rate due to such things as poor sales, intense competition, lack of capital, or lack of managerial ability. "A new organization is fragile because it lacks a formal structure to give its value-creation processes and actions stability and certainty" (Jones, R, Gareth, 2004, p340) the financial and emotional risk can also be very high . The population ecology theory seeks to explain the factors that affect the rate at which new organizations are born (and die) in a population of existing organizations. According to this theory the availability of resources determines the number of organizations in a population. ...read more.

Conclusion

Not only are government agencies being set up for such cases, but schools, colleges and universities all see this particular area of business as very promising and have began an extensive teaching programme, such courses available include, Law and Entrepreneur, Accountancy and Entrepreneurship. Although at the moment many individuals realise the potential of owning there own business, entrepreneurship is said to be a fad and will more than likely become dated in a way, possibly within the next ten years. However, the overall concept of entrepreneurship -according to Austrian Economist Joseph Schumpeter- is innovation (www.quickmba.com) as wealth is created when such innovation results in new demand. From this viewpoint one can define the function of the entrepreneur as one of combining various input factors in an innovative manner to generate value to the customer with the hope that this value will exceed the cost of the input factors, thus generating superior returns that result in the creation of wealth and this wealth also leads on to how entrepreneurial is an important area of focus because the wealth generated helps the economy, creating jobs, a better state and a better life for all of us. Words: 1604 ...read more.

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