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Introduction to Entrepreneurship Introduction to Entrepreneurship

Entrepreneurship has become increasingly important for businesses of all sizes around Entrepreneurs have always been present, however their behavioural patterns were different in different periods of
time.
the world.

It opens new opportunities and possibilities for the businesses to create values for The word entrepreneur was derived from the French word “entreprendre”, which means “to undertake” (Kuratko,
2016).
themselves and for the society at large.

The usage of the term entrepreneur can be traced from 1755, wherein an entrepreneur was described to “buy the
Despite its popularity, studies suggest that the scope of entrepreneurship remains country produce from those who bring it or to order it to be brought on their account. They pay a certain price to
unknown, and therefore the prospects of entrepreneurial activities remains not fully resell wholesale or retail at an uncertain price” (Cantillon, 1931, p.51; Hamilton & Harper, 1994)
realised.
This chapter highlights some aspects concerning the concept of entrepreneur, Entrepreneur from the very beginning, was principally an independent speculator of the commodity (Hamilton &
entrepreneurship, entrepreneurial process and finally the entrepreneurship opportunities Harper, 1994)
and challenges.
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Introduction to Entrepreneurship Introduction to Entrepreneurship

In the modern day markets, the term entrepreneur has been closely linked with economic development.
An economic development can emerge due to several reasons, which includes:
(a) the launch of new source of procurement for raw materials or materials
(b) the introduction of a new production mechanism
(c) the introduction of a new quality of product, or a novel product take risks whilst
innovators or transform the
In contemporary create value through seeking rewards for
(d) the opening of new market markets, entrepreneur
developers who
identify and capture
opportunities into
merchandisable
multiple stakeholders their ventures and
act as: and resources efforts (Kuratko,
opportunities concepts
(e) the re-organisation of a business. 2016)

The management of all these aspects are carried by an enterprise, and the people whose functions are to
carry out these activities are called entrepreneurs (Bull & Willard, 1993)

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Definition of an Entrepreneur Characteristics of an Entrepreneur

The main characteristics of the entrepreneur are due to their sociological and psychological factors. Some of those
To date, several definitions have been penned to describe an entrepreneur. And some of them are characteristics are mentioned below:
mentioned herewith:
Entrepreneurs are vision-oriented people

Entrepreneur is someone who manages all the necessary resources to produce and market a product which Entrepreneurs have a high need in achievement
responds to the market scarcity (Leibenstein, 1968; Bull & Willard, 1993).
Entrepreneurs do not rely on fate or luck, however they try to control their own lives

“Entrepreneurs are individuals who recognize opportunities where others see chaos contradiction, and
Entrepreneurs undertake moderate risks, which is why they look for high earning on their investments
confusion. They are aggressive catalysts for change within the marketplace” Kuratko (2016, p.3)

Entrepreneurs have the abilities to deal with several ambiguous situations in their ventures. They face these ambiguous
“Entrepreneur is the person who carries out new combinations, causing discontinuity. The role is completed situations and circumstances regularly because they do certain jobs and tasks which are entirely new by nature.
when the function is completed. The person may be an employee with an existing organisation or may start
a new venture. An investor per se only risks capital for a return.” Bull & Willard (1993, p. 186) Entrepreneurs have the tendency to be productive and efficient with in a given period of time. However, at times, they
might be seen as inflexible individuals in team-work.
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Traits of an Entrepreneur Description of Entrepreneurship

Some of the common traits of entrepreneurs are :
Risk takers

Flexible Entrepreneurship is an “act of establishing a new venture” Christensen et al,

(2000, p.4)
Knowledgeable

Independent

Energetic
Entrepreneurship can also be considered as the function through which growth
and development can be achieved without commencing a new business venture.
Creative It offers a process by which people either inside the companies or on their own,
look for prospects without regard to the resources they presently control
Dynamic leader
(Stevenson et al, 1989; Stevenson & Jarillo, 1990).
Responsive to suggestions or
criticisms
Resourceful
However, “an entrepreneurial organisation is that which pursues opportunity,
Initiators regardless of resources currently controlled” Stevenson & Jarillo (1990, p.23).
Persistent

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Definition of Entrepreneurship Types of Entrepreneurship

There are generally four entrepreneurial types:

“Entrepreneurship is the creation of

organisations. What differentiates
entrepreneurs from non-entrepreneurs is
that entrepreneurs create organisation,
while non-entrepreneurs do not. In
Achievement Salesman
behavioural approaches to the study of entrepreneur entrepreneur
entrepreneurship, an entrepreneur is seen
as a set of activities involved in
organisation creation, while in trait
approaches an entrepreneur is a set of
personality traits and characteristics”
Gartner (1988, p.11)
Technology
Manager
entrepreneur

9 Source: Adapted from Carsrud & Brannback, 2007) 10

Types of Entrepreneurship Types of Entrepreneurship

Achievement entrepreneur Salesman entrepreneur:

Primarily associated with the desire to achieve.
These types of individuals are usually having an enormous amount of energy and capabilities to take charge.
They take initiatives and do not wait for things to happen.
They often possess the leadership qualities and have a great sense of commitment and responsibility in their
ventures.
These types of individuals are good in several in several business related aspects and they try to accomplish
their objectives, whilst heading their missions. (Carsrud & Brannback, 2007).
 These individuals possess skills to interact with people and have very good soft side of the management
aspects.
 These people are typified for having the feelings of the consumers’ needs and wants.
 They usually use the soft sales approach whilst pursuing the growth of their ventures.
 They have enormous talent for connecting with people and spend most of their time in marketing their
products/services and permit other people to manage their businesses.
 These individuals therefore devote their time to understand who and how are the consumers in the market.
 They develop a proper vision for marketing and sales practices to reach wider consumer groups. (Carsrud &
Brannback, 2007).

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Types of Entrepreneurship Types of Entrepreneurship

Technology entrepreneur:
 Individuals belong to this category, are generally idea developers.
 These individuals often possess great ideas
 They have the capabilities to develop innovative processes and invent novel products or services for niche
markets.
 As these individuals possess qualities to create several ideas they have a good analytical intelligence and
take calculated risks in their ventures
 Although these individuals possess good analytical intelligence to make way through several situations,
however, at times their missions can become a bit idealistic. (Carsrud & Brannback, 2007).
Manager:
 These types of individuals possess the qualities of taking charge of the missions.
 Individuals belonging to this type of entrepreneurship are very competitive by nature but not as co-
operative as one would expect in a team work.
 They are usually found to take positions of high authority, such as external investors or sometimes act as
board of directors.
 They prefer to work in larger organisations than small entrepreneurial businesses.
 They seek comfort in making effective marketing strategies, but not necessary selling products or services.
 Their ways to sell are different, they employ logic and carefully thought persuasions, as mechanisms to sell
their ideas.
 They have rich experiences, strong management skills and possess strength in managing existing businesses
(Carsrud & Brannback, 2007).

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Enrepreneurship Process Entrepreneurship opportunities

The process of entrepreneurship
can be observed through the six-
stage process:
Persuade others
Identify an Entrepreneurship offers several opportunities and some of those opportunities are:
opportunity
(a) expansion of entrepreneurial activities through the advent of the internet and the
Establish a vision explosion of e-commerce on a global scale.
(b) Integration in social and political fabrics in several emerging economies.
(c) increasing economic situations in middle income house-holds in several economies.
Gather resources
(d) increase in cross-border engagements and market entry mechanisms such as strategic
Create new venture,
product or market alliances, subsidiaries, joint ventures etc.
(e) evolving trends in channel structures among the developed world.
(f) increased engagements in global markets concerning social responsibility and ethics (Ramachandran &
Gokila, 2012).
Change/adapt with
time

Source: Lall & Sahai (2007, p.16) 15 16

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Entrepreneurship avenues Entrepreneurship challenges

Contemporary markets offers several avenues for entrepreneurial activities: Although entrepreneurship activities are beneficial, however they come with certain challenges. Some of those
challenges are mentioned herewith:

Knowledge gap between the developed,

Firstly, entrepreneurs can seek information to understand the balance of trade emerging, frontier and under developed
relationships between the exports in potential markets and the merchandising markets for conducting business
imports.
Difference in accounting systems in several
countries

Secondly, entrepreneurs can conduct extensive research to understand the political Variable rates of return
aspects of the global economy to seek other outlines for strategic and operational
aspects concerning barriers to enter a market.
Non-convertibility of the currencies

Thirdly, entrepreneurs can understand the developments of any domestic market of a

country and comprehend how these nations protect their industry by establishing Communication gaps
tariffs, quotas, boycotts, non-tariff, monetary and market barriers (Ramachandran &
Gokila, 2012).
Language barriers

Source: Adapted from Ramachandran & Gokila (2012).

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Entrepreneurship challenges References

In addition, to the previously mentioned challenges, there are also some other challenges commonly found in
Baumol, W. J. (1968). Entrepreneurship in economic theory. The American economic review, 58(2), 64-71.
entrepreneurship

Bull, I., & Willard, G. E. (1993). Towards a theory of entrepreneurship. Journal of business venturing, 8(3), 183-
Political unrest and legal 195.
concerns
Cultural differences Cantillon, R. (1775). The circulation and exchange of goods and merchandise. Chapter 13 of Higgs, H. (Ed), Essai
sur la Nature du Commerce en Général, Macmillan, London.
Discrepancies in the use of
technology Carsrud, A. L., & Brännback, M. (2007). Entrepreneurship: Greenwood Guides to Business. Westport, USA:
Greenwood Press.
Complexity in the markets
Christensen, P. V., Ulhøi, J. P., & Madsen, H. (2000). The entrepreneurial process in a dynamic network
Supply chain concerns perspective: a review and future directions for research. LOK Working Paper No. 6-2000, Copenhagen: LOK
Lack of specific infrastructure in Research Center.
some countries or regions
Financial markets and their Gartner, W. B. (1988). Who is the entrepreneur? Is the wrong question. In American Journal of Small Business;
volatility Spring, 88, 12(4), 11-32.
Source: Adapted from Ramachandran & Gokila (2012). 19 20

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References
Gartner, W. B., Shaver, K. G., Gatewood, E., & Katz, J. A. (1994). Finding the entrepreneur in
entrepreneurship. (Editorial), Entrepreneurship Theory and Practice. 18(3), 5-9.
Hamilton, R. T., & Harper, D. A. (1994). The entrepreneur in theory and practice. Journal of economic
Studies, 21(6), 3-18.
Kuratko, D. F. (2016). Entrepreneurship: Theory, process, and practice. Tenth Edition, Boston, USA: Cengage
Learning.
Lall, M., & Sahai, S. (2008). Entrepreneurship. Second Edition, New Delhi, India: Excel Books.
Leibenstein, H. (1968). Entrepreneurship and development. The American Economic Review, 58(2), 72-83.
Nandram, S. S., & Samsom, K. J. (2006). The spirit of entrepreneurship: Exploring the essence of
entrepreneurship through personal stories. Berlin: Springer.
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References
Pendergast, W. R. (2003). Entrepreneurial Contexts and Traits of Entrepreneurs. Proceedings Teaching
Entrepreneurship to Engineering students, Engineering conferences international, Monterey, CA, USA.
Ramachandran, K. K., & Gokila, R. (2012). International Entrepreneurship—Opportunities and Challenges. In
Creativity, Innovation and Entrepreneurship, Jerinabi, U., & Santhi, P. (Eds), New Delhi, India: Allied Publishers
Private Limited, pp, 21- 25.
Schumpeter, J. A. (1976). Capitalism, Socialism and Democracy. Fifth Edition, London: George Allen & Unwin.
Stevenson, H. H., & Jarillo, J. C. (1990). A paradigm of entrepreneurship: Entrepreneurial management.
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