• 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...


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.


(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.


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. A Comparative Discussion of Different Approaches to Entrepreneurship.

    He put forward a concept for the continuous change as 'creative destruction'. At the same time, the innovation is induced in his opinion as 'incessantly revolutionises the economic structure from incessantly destroying the old one and incessantly creating new one' (1987).

  2. Retailing In India - A Government Policy Perspective

    Though in several cases, the foreign investor is discouraged even before he seriously considers a project, 220 of the Fortune 500 companies have some presence in India and several surveys (JBIC, Japan Exim bank, A T Kearney) show India as the most promising and profitable destination.

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

    This would be really good for Sony because it shows that they can target expensive products at them because they can afford. As Catholics continue to prohibit birth control which tends to result in large families, which more kids. So these kids would want Sony's products like the PS2 because it is fashion.

  2. analyze an organization (ba)

    The extent of the threat from a particular substitute will depend upon the extent to which the price and performance of the substitute can match the industry's product and the willingness of the buyers to switch to the substitute.(Campbell, 2002).

  1. Free essay

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

    I will then also record how much of which materials make up the main waste in the wheelie bin and also in the recycling boxes/bags. Results are shown below. The pie charts show the regular recycling figures of my household waste are: 27% is recycled while 73% is not.

  2. Free essay

    Globalisation & changing career patterns

    Fig 1: Source - World Bank Figure 1 above, shows the comparison of a number of countries GDP rates, sampled in 2002. The GDP is the total value of goods and services produced by a nation per annum. This graph, shows that Saudi Arabia, Mexico, Argentina, Russia, South Africa, Iran,

  1. Victoria Junior College

    era being a superpower meant that the US had to compete with the Soviet Union in economic and political terms. Moreover, the US was obliged to give aid to its allies in order to secure their support and act as a strong bulwark against communism - the Marshall Plan which

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

    In the past, this approach concentrated on first dividing the money over several countries and secondly how to spread the investment within a country. The new one-step strategy advocated recently, primarily focuses on diversification among industries rather than geographical diversification in the first place.

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