An entrepreneur is an individual who owns, organizes and manages a business and, in so doing, assumes the risk of either making a profit or losing the investment.
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.
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.
While the loan from French of the word "entrepreneur" dates to the The entrpreneurship, 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 The entrpreneurship continues to be debated in academic economics.
An alternative 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. In the s, entrepreneurship has been extended from its origins in for-profit businesses to include social entrepreneurshipin which business goals are sought alongside social, environmental or humanitarian goals and even the concept of the political entrepreneur.
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.Dare, Act, engage, share: Being an entrepreneur is much more than a profession, it is a life experience. In a tense context, entrepreneurship is also a tremendous growth driver for our economy and a real opportunity for success for those who know how to surround themselves, understand the inner workings and mechanics of the company, approach new markets, develop a vision and transmit this to.
Designed for budding entrepreneurs, current business owners and corporate executives, the MBA in Entrepreneurship is one of the most affordable MBAs in the nation and can be completed in just over a year.
The coursework by design is readily applicable to your real-world challenges. Senior Lecturer, Major & Minor HRM and Minor Entrepreneurship RMIT University Vietnam LLC Ho Chi Minh City, Vietnam Human Resources Posted 11/19/18 Endowed Lecturer in Free Enterprise and Entrepreneurship University of Kentucky Lexington, KY Entrepreneurship Posted 11/17/ Entrepreneurship is important to the economy in many ways, but it can potentially have a damaging effect as well if not properly regulated.
Join us for a panel discussion with leading entrepreneurs, talks, prizes and refreshments in London, Thursday, 27 September, , pmpm Published: 17 Aug Why is entrepreneurship important? - Entrepreneurial firms have a positive impact on the effectiveness of larger firms - Being agents of innovation entrepreneurs are the key driver of economic progress.
Name the entrepreneurial process. Lecture 2: Recognizing Opportunities and generating ideas.