• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

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

Extracts from this document...

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.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. The Japanese Occupation - Concept of Great East Asia Co-Prosperity Sphere

    forces arrived Communities were uprooted as families fled the towns to the rural areas to escape direct contact with the regime and squatted on the fringes of the jungle to survive on subsistence cultivation. Labour was recruited forcibly from the Burmese, the overseas Indian community and Indonesians to build projects such as the Burma railway or military defences.

  2. A Comparative Discussion of Different Approaches to Entrepreneurship.

    Compared with Schumpeter's opinion, the Austrian tradition emphasizes the profit opportunity perceiving of entrepreneurship. It was Israel M. Kirzner, 1994, who defined economic theory as a market agent with the propensity to notice and the drive to exploit profit opportunity.1 Thus, 'Entrepreneurship, rigorously defined, refers to the creation of a

  1. analyze an organization (ba)

    In addition to this, the airline industry now is extremely uncertain and new entrants need expensive start up costs. Threat of new entrance in the airline industry is low; however, the probability of the alliances and joint ventures between existing firms is very high.

  2. The Quest for Optimal Asset Allocation Strategies in Integrating Europe.

    They find that today, in the beginning of the 21st Century, global correlations are at a historical high - approaching levels of correlation last experienced during the Great Depression. Surprisingly, however, more recent empirical research from other authors who examined the correlation structure of European stock markets, are not in line with this earlier conclusion.

  1. Discuss the proposition that the 'state-market condominium' is the best focus for IPE.

    Moreover, they can freely do anything under markets as long as whatever is done commands a reasonable price and under the law. 3 On the other hand, states are mainly relevant to politics which is about what governments, political parties and electorates interact in a complex pattern , domestics and international.

  2. This report will establish the opportunities and threats presented to Sony by the EU ...

    Three categories of barriers that still existed in the EU one is prevention of entry into markets. Due to differing technical standards were required of products by different member states. This made it difficult for firms to enter certain markets in the EU.

  1. In what ways, and to what extent, does the concept of Spain's 'Golden Age' ...

    ultimately identify to what extent Philip's accession in 1556 prefigured fundamental and positive changes that differed significantly enough from prior reigns to allow his reign to be the sole 'Golden Age.' The most common factor cited as evidence of a Spanish 'Golden Age' is the almost meteoric growth of Castile

  2. Free essay

    From an economic perspective should my council do more to recycle a greater proportion ...

    This requires me to collect data that has already been produced by the third party. For the secondary research, I will be trying to find out how my local council is trying to promote recycling and how they fair compared to other councils (recycling facilities).

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work