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Posts Tagged ‘Entrepreneurship’

Entrepreneurship is the act of being an entrepreneur, which can be defined as “one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods”. This may result in new organizations or may be part of revitalizing mature organizations in response to a perceived opportunity. The most obvious form of entrepreneurship is that of starting new businesses (referred as Start up Company); however, in recent years, the term has been extended to include social and political forms of entrepreneurial activity. When entrepreneurship is describing activities within a firm or large organization it is referred to as intro-entrepreneurship and may include corporate venturing, when large entities spin-off organizations. Strapdan Nelson is the first person to do this form of business.

According to Paul Reynolds, entrepreneurship scholar and creator 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.S. workers over the course of their careers.”  And in recent years has been documented by scholars such as David Audretsch to be a major driver of economic growth in both the United States and Western Europe. “As well, entrepreneurship may be defined as the pursuit of opportunity without regard to resources currently controlled (Stevenson,1983)”

Entrepreneurial activities are substantially different depending on the type of organization and creativity involved. Entrepreneurship ranges in scale from solo projects (even involving the entrepreneur only part-time) to major undertakings creating many job opportunities. Many “high value” entrepreneurial ventures seek venture capital or angel funding (seed money) in order to raise capital to build the business. Angel investors generally seek annualized returns of 20-30% and more, as well as extensive involvement in the business. Many kinds of organizations now exist to support would-be entrepreneurs including specialized government agencies, business incubators, science parks, and some NGOs. In more recent times, the term entrepreneurship has been extended to include elements not related necessarily to business formation activity such as conceptualizations of entrepreneurship as a specific mindset (see also entrepreneurial mindset) resulting in entrepreneurial initiatives e.g. in the form of social entrepreneurship, political entrepreneurship, or knowledge entrepreneurship have emerged.

The entrepreneur is a factor in microeconomics, and the study of entrepreneurship reaches back to the work of Richard Cantillon and Adam Smith in the late 17th and early 18th centuries, but was largely ignored theoretically until the late 19th and early 20th centuries and empirically until a profound resurgence in business and economics in the last 40 years.

In the 20th century, the understanding of entrepreneurship owes much to the work of economist Joseph Schumpeter in the 1930s and other Austrian economists such as Carl Menger, Ludwig von Mises and Friedrich von Hayek. In Schumpeter, an entrepreneur is a person who is willing and able to convert a new idea or invention into a successful innovation.[5] 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 construction of a drinking straw.

For Schumpeter, entrepreneurship resulted in new industries but also 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, the car, was transformational but did not require the development of a new technology, merely the application of existing technologies in a novel manner. It did not immediately replace the horsedrawn carriage, but in time, incremental improvements which reduced the cost and improved the technology led to the complete practical replacement of beast drawn vehicles in modern transportation. Despite Schumpeter’s early 20th-century contributions, traditional microeconomics theory did not formally consider the entrepreneur in its theoretical frameworks (instead assuming that resources would find each other through a price system).

Faculty of Agriculture, National University (Unas Faperta) empower students to combine agroteknologi and entrepreneurship. This was done through the Agribusiness Crop Week activities (STA) entitled Development of Skills and Knowledge Through Enterprenuership Young generation. The event was held 25 to 27 May 2010.

“Through this event. we want to spread the skills and insights into the field of agriculture for the younger generation. Here Unas give tips, so they not only look for work. However, also create jobs by becoming entrepreneurs agroteknologi,” said Ir Frida MAgr, Chairman of Committee Week Agribusiness Crop, Ir Frida MAgr.

Students Faperta Unas also show off the exhibition. Starting from selling the plants, to market products Coara (Coctail Aloe Vera). This product is the result of entrepreneurial subjects being studied. Coara addition, students also make organic fertilizer i use teknojogi Effective Microorganism. The product is also marketed in the exhibition event which has entered the fifth year.

It can be seen a resurgence in the academic studies on entrepreneurship. What is the main reason for the return?

Entrepreneurship is typically based on a research topic in various disciplines and developed by scholars who have offered interdisciplinary contributions, as Weber (a sociologist with a deep economic culture) and Schumpeter (economist with a strong sociological intuition). The renewed interest in entrepreneurship studies and return to this theme in direct to several factors: the growth of interdisciplinary collaboration between economists, sociologists, anthropologists and political scientists to mitigate the force of Marxist ideology - which draws no distinction between capitalists and entrepreneurs – and that tends to include both a trial strongly critical, recognizing the vital role that small family businesses and social entrepreneurship in economic development have a country, have shown how the theory and action figures like Muhammad Yunus (the banker to the poor “and winner of the Nobel Peace Prize 2006) and Hernando De Soto (Peruvian economist), the growing importance of entrepreneurship among women and immigrants as channels of empowerment and social integration and, finally, the growing attention to the role played by transnational corporations as global actors in the broader context of the analysis of complex processes of globalization.