Everything changes with the times as per the law of nature .

Successful people and businesses

foresee a situation, prepare themselves, and adapt to it. Accordingly, entrepreneurship has
evolved and transformed the way companies are run during 2024.

From the last 100 years, the world is rapidly progressing in all ways possible. Moreover, the
transformation of entrepreneurship has led to a complete face-lift of the way businesses are
setup. What entrepreneurs think today is very different from those thoughts in the 1950s.

The concept of entrepreneurship has evolved dramatically over the past two centuries.
However, the key fact remains same that entrepreneurship is on the rise. Let us examine the
reasons for this surge, and compare the ways that today’s entrepreneur think contrast to their
predecessors.

Defining the entrepreneurship

What is entrepreneurship?

In a nutshell, entrepreneurship is the activity of establishing companies, overcoming financial

risks, to generate revenues, and earn profits.

Irish-French economist Richard Cantillon was among the first persons to iterate the concept of
entrepreneurship in 1723. Scottish economist Adam Smith linked this concept with capitalism in
the late 1700s. In 1803, French economist Jean-Baptiste Say defined entrepreneur as an
economic agent who performs the following activities.

● Utilizes means of production (land, labor, capital) to develop a product

● Sells his product to gain revenue which will cover cost of production and remaining will
be profit
● Entrepreneur also develops means to increase his profits either by lessening cost of
production or by relocating the means of production

This definition though narrow but sounds familiar. Subsequently, the business owners on the
enterprising journey are commonly practicing it as a costs cutting strategy. This concept is
important in the relocation of economic resources for entrepreneurs as well.

Harvard Business School’s former business professor Howard Stevenson defines

entrepreneurship as follows.

“Entrepreneurship is the pursuit of opportunity without regard to resources currently

controlled.”

Howard H. Stevenson — Harvard Business School’s former business professor

This means that entrepreneurs can identify a business opportunity even if they do not have
means to achieve it. Likewise, it is not about utilization of available resources to develop a
product. Rather, it relates to having a vision to produce something and then work for ways to
obtain required resources.
Evolution of entrepreneurship
Can you describe the evolution of entrepreneurship?

Here is how entrepreneurship has evolved globally in terms of business expansion over the
years.

● Trade
● Agricultural revolution
● Expansion of trade routes
● Invention of money
● Beginning of the markets
● Industrial revolution
● Modern entrepreneurship

Now, we take a look on the phases of entrepreneurship.

Trade
Although, not known back then, trade was the first form of entrepreneurship, starting nearly
20,000 years ago. Humans were exchanging goods for the overall benefit of their tribes. Known
as barter trade, it let people to give their excess items to others to receive some valuable things
in return.

Agricultural revolution
With time, people learnt to domesticate plants and animals. Group of people cultivated food and
exchanged it with people who provided valuable goods. Thus, new areas of specialization
began to emerge such as pottery, carpentry, wool-making, and masonry.

Expansion of trade routes

Cities started to appear from 2000 BCE. As population rose, people got an idea that they can
earn profits by trading between cities and cultures. Popular trade at that time was of salt, fruits,
rice, wheat, and paper making (by China).

Invention of money
The key development in the history of entrepreneurship was a shift from barter system to
currency. Coins were the first mode of payment. Later, paper money as a medium of exchange,
became a way to store value.
Beginning of the markets
Large marketplaces became more popular to cater large population. Economic regulations and
banking became more efficient. Consequently, small businesses and entrepreneurs could
purchase goods from abroad.

Innovation, mercantilism, and explorers was on the rise at that time. Afterward, market economy
has led to a boost in the global trade. Luca Pacioli formulated standardized principles to keep
track of a company’s accounts.

Industrial revolution
The shift from small scale to large scale production led to the industrial revolution.
Henceforward, it gave rise to some of the world’s great entrepreneurs such as J. Morgan and
John D. Rockefeller.

Modern entrepreneurship
Nowadays, entrepreneurship serves as lifeblood of all economies of the world. Entrepreneurs
innovate the businesses processes and meet the needs of the users. Therefore, countries
worldwide value their contribution in the economy.

Change drivers for entrepreneurship

Which are the change drivers for entrepreneurship?

These are the change drivers that are transforming entrepreneurship.

● Technology
● Diversity
● Entrepreneurial education
● Location
● Ethical entrepreneurship

Next, we briefly look upon the change drivers that are powering entrepreneurship.

Technology
Technological entrepreneurship is progressing rapidly across the world and in the UAE.
According to 2017 MENA Venture Report, tech companies in UAE made up 29% of new
businesses. Even if a business is not a tech startup, it will utilize technological tools like social
media, apps, and websites.
More than 60% of people in Middle East have access to internet. Technology helps people
access essential business knowledge and tools for their low cost startup which were not
possible before. Also, new technologies boost entrepreneurial potential and provide a plethora
of opportunities to start new businesses.

Diversity
Nowadays, we can see more women taking in charge of new startups. A report by the global
entrepreneurship research association is a testimony to this progress. It reveals there are some
countries such as Qatar where females have equal or higher entrepreneurship rates than men.

Entrepreneurship diversifies in the terms of age as well. Also, minority owned businesses are on
the rise. Many new entrepreneurs are starting out at a young age.

Entrepreneurial education
Entrepreneurship is a concept that you can learn. So, entrepreneurial education is a must to
develop enterprising culture and drive business. Universities in the UAE like NYU Abu Dhabi
and Dubai Entrepreneurs Academy offer courses on business and career development.

Those who cannot learn in universities can gain access to this information via internet. For
example, free online courses, podcasts, YouTube videos, etc. It is one of the main reasons that
many entrepreneurs are starting out young.

Location
Entrepreneurship has evolved in terms of location as well. Thanks to the internet, in
entrepreneur can work from anywhere and with great speed. Hence, big companies are
widening their workforce to take benefit out of small startups in developing nations.

A study by risk management and brokerage firm Willis Woers Watson is right on the money. As
it discloses that 55% of multi-national companies are looking for ways to effectively handle their
workforce. Besides, they can use external contractors for the next three years.

Ethical entrepreneurship
There are people who are no longer profit driven. Rather they want to build their corporate
empire that is socially aware and returns something to society. They are known as ethical
entrepreneurs.

An example is of TOM, a shoe store which has a “one for one” policy. When you buy one pair of
shoes, the store donates another pair to a person in need. Therefore, ethical entrepreneurship
is beneficial for both the business owners and the community.
____________________________________________________________________________
● Entrepreneurship began thousands of years ago as people specialized their skills.
● As trade routes expanded, opportunities for entrepreneurs grew as well.
● The evolution of entrepreneurship has redefined America's economy many times over.

Entrepreneurial activities are nothing new. In fact, the history of entrepreneurship dates back to
ancient times and has steadily evolved over thousands of years. Entrepreneurship has influenced
nearly every aspect of society, from aiding in the development of economies to creating new
technologies for modern consumers.

The origins of entrepreneurship started with tribal communities trading goods and eventually led to
the invention of money. Dive into this article to discover how entrepreneurship has affected society,
fueled the industrial revolutions and framed the American economy.

The origins of entrepreneurship

The first instances of entrepreneurship centered on the exchange of goods between ancient tribal
societies. The development of agricultural skills created the opportunity for even more
entrepreneurship, and this eventually evolved into more specialized skills and tasks, from crafting
jewelry to making weapons to crafting tools for working with crops. Exchanging these goods and
services with others was the birth of entrepreneurship.

Where Does the Term "Entrepreneur" Come From?

The term “entrepreneur” likely comes from the French word "entreprendre," meaning to start
something. Richard Cantillon, an 18th-century Irish-French economist, is widely credited with
defining entrepreneurship — and entrepreneurs — as an economic force that drives development.

The evolution of trade routes

Trade became more nuanced as entrepreneurship continued to evolve. The development of early
towns and cities meant that people began to not only trade among themselves but also travel
between places to obtain other goods. The use and invention of various modes of transportation,
from horses to ships, enabled this movement even more.

Entrepreneurship thrived with this expansion. Communities established markets as business

centers, and traders developed regular routes — over land and sea — to shuttle items between
commercial hubs.

Moving from trade to the invention of money

The history of entrepreneurship started with bartering, as people traded goods for other goods.
However, the barter system relied on each party having something the other party needed: enter the
invention of money.

Monetary systems provided a way to assign objective value to items and exchange them at that
price. Starting with rocks, shells or other small items, money gradually became gold or other forms of
metal. Banks began to emerge as a way to safely store money.

An overview of the four industrial revolutions

An industrial revolution, while often associated with the transition from agriculture to industry,
generally refers to the evolution of new manufacturing processes and rapid social and economic
change. If trade routes and the development of money sparked entrepreneurship, then the industrial
revolutions added fuel to the fire.

Entrepreneurs became the driving force behind the innovation that launched the first industrial
revolution and those after. Their inventions ushered in the industrial age, often allowing companies
to scale their production and become exponentially more efficient. Products that used to take days or
weeks to make could now be made in hours or minutes.

The first industrial revolution: From agriculture to industry

The first industrial revolution occurred in the late 18th century and early 19th century. The primary
innovations were early machines that reduced the need for human labor, enabling the rise of the first
factories. The extraction of coal and the invention of the steam engine during this period also led to
the proliferation of railroads around the world, accelerating trade. Entrepreneurs raised money to
invest in some of the first railroads, built early factories and developed some of the first
mass-produced textiles.

The second industrial revolution: Electricity, gas and oil

The second industrial revolution, which started in 1870, was defined by the use of new energy
sources, including electricity, gas and oil, along with the mass production of steel and iron. Advances
in telecommunications, chiefly the telegraph, allowed ideas to spread quickly and opened the door
for the beginning of globalization. The invention of the automobile also made the second industrial
revolution exceptionally significant — some say it's the most important industrial revolution.
Entrepreneurs in this era accumulated considerable wealth by mass-producing everything from
railroad tracks to Model T's.

The third industrial revolution: Electronics, the internet and nuclear energy
The third industrial revolution started in the late 1960s and extended for 50 years. This revolution
was characterized by computers and electronics, the rise of the internet and the advent of nuclear
energy. In this period, entrepreneurs invented digital technology and then started global businesses
to sell it to the masses. The third industrial revolution includes, for example, the invention of Apple
computers and the launch of social media.
The fourth industrial revolution: Interconnected technologies and renewable energy
The fourth industrial revolution is ongoing: we are living in it. This revolution is defined by connected
devices, digital transformation, data analytics, artificial intelligence and machine learning. The focus
is also on renewable energy as companies look for ways to reduce their carbon footprint and slow
global warming. Entrepreneurs continue to influence this era through their innovations, leveraging
emerging technologies to automate far more complex processes or create more sustainable
business operations.

American entrepreneurship
In many ways, innovation and entrepreneurship are at the heart of the American Dream. Our
country's history has relied on entrepreneurs to develop new technologies and enable
advancements that grow the U.S. economy and improve the quality of life. The ability to have an
idea, start a business and create a livelihood has made the United States a center of innovation and
wealth creation for centuries.

Examples of American entrepreneurs

American entrepreneurs loom large in the country's history. Henry Ford, the founder of the Ford
Motor Company, and Madam C.J. Walker, founder of the Madam C. J. Walker Manufacturing
Company, are examples of Americans who transformed their ideas into flourishing businesses and
paved the way for others who used entrepreneurship to create global economic powerhouses.

The entrepreneurial era today

Today's entrepreneurs can follow a few different paths, whether they're creating a technology startup
or running a small business in their hometown. They may even use entrepreneurship to drive social
change or fight for social justice.

Regardless of their path, entrepreneurs come from a long line of innovators that have defined and
shaped history. They will likely continue to do so going forward, inventing and introducing new
products and ideas that improve people's lives and inspire budding entrepreneurs for generations to
come.

________________________________________________________________________________

An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying
most of the rewards. The entrepreneur is commonly seen as an innovator, a source of new ideas,
goods, services, and business/or procedures.

Entrepreneurs play a key role in any economy, using the skills and initiative necessary to anticipate
needs and bring good new ideas to market. Entrepreneurs who prove to be successful in taking on
the risks of a startup are rewarded with profits, fame, and continued growth opportunities. Those
who fail, suffer losses and become less prevalent in the markets.
KEY TAKEAWAYS
● Entrepreneurs are vital parts of capitalist economies, taking on large degrees of risk in order
to innovate and found new companies.
● While economic thinkers have long known that business owners (aka "capitalists") are vital to
economic growth and wealth creation, the word "entrepreneur" only appeared in the 1800s.
● Coined by economic philosopher Jean-Baptiste Say, the word comes from French, where it
means "undertaker"—i.e. one who undertakes a new venture.1

Who Coined It?

Economists have never had a consistent definition of "entrepreneur" or "entrepreneurship." Though
the concept of an entrepreneur has existed and was known for centuries, the classical and
neoclassical economists interestingly left entrepreneurs out of their formal models of the economy:
They assumed that perfect information would be known to fully rational actors, leaving no room for
risk-taking or discovery. It wasn't until the middle of the 20th century that economists seriously
attempted to incorporate entrepreneurship into their models.

Three thinkers were central to the inclusion of entrepreneurs in later iterations of economics: Joseph
Schumpeter, Frank Knight, and Israel Kirzner.2 Schumpeter suggested that entrepreneurs—not just
companies—were responsible for the creation of new things in the search of profit. Knight focused
on entrepreneurs as the bearers of uncertainty and believed they were responsible for risk premiums
in financial markets. Kirzner thought of entrepreneurship as a process that led to the discovery.

Even though he was the first to describe in detail capitalist production and the profit motive of
business owners, it wasn't Adam Smith who coined the term "entrepreneur." One type of person
strangely overlooked in Smith's free-market masterpiece, "The Wealth of Nations," is the
entrepreneur. This is because the term was actually coined afterwards by an admirer of Adam
Smith's book.

Entrepreneur is a French word probably coined by the economist Jean-Baptiste Say from the word
entreprendre, which is usually translated as "undertaker" or "adventurer."1 Say studied Smith's book
and, while agreeing on all points, found that the omission of enterprising businessmen was a serious
flaw.