Concept and Value of Entrepreneurship

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Question: What is entrepreneurship? Illustrate your answer with suitable examples from your home country.

Nowadays, entrepreneurship places an important determinant of development in the society and regarded as the “rock stars” in the business world. According to Global Entrepreneurship Monitor (GEM), entrepreneurship is defined as: 'any attempt to create a new business enterprise or to expand an existing business by an individual, a team of individuals or an established business’. It means that the individuals or an established business are able to make a unique, innovative and creative contribution whether in employment or self-employment. At the same time, entrepreneurship represents people who are driven to act on opportunities and environmental catalysts in the face of limited resources. At its core, entrepreneurship is starting a business from idea conception to managing the company for the long term. There is no doubt that entrepreneurship deserves the reputation for the reason that it has the level of freedom of which traditional managers can only dream.( Morrison, 2000)

In order to inquire entrepreneurship deeply, this article illustrates two essential parts to analysis entrepreneurship. The first aspect is giving the concept of entrepreneurship including the explanation of entrepreneurship and discussing whether entrepreneurship is aroused from nature or nurture. The second part is considering the value of entrepreneurship.

Part one: the concept of entrepreneurship

Entrepreneurship can be explained into various approaches, including economic approach, personality approach and other approaches. In this part, the article put emphasis on the economic dimension and personality dimension to analyze the features distinguished entrepreneurs.

The role of entrepreneurship is embedded in the mainstream economic models. Considering the direction of causality between entrepreneurship and economy, it can be proved that economic development generates many opportunities which can transform new ideas and create the new enterprises. On the contrary, the creation of new industries and the innovation of existed firms which stimulated by entrepreneurship may stimulate the economic growth. Therefore, entrepreneurship can be regarded as both the cause and effect of economic development.

From an economic perspective, the measure of entrepreneurship is the contribution of new firm formation. Entrepreneurs are more than a business man, they are the speculative trader which is skilled to put forward new ideas, grasp the opportunities and combine the effective management with innovation in the risk and uncertainty background. When starting up a new enterprise, there are a number of jobs available can be generated. When facing with the economic slump and financial crisis, entrepreneurs can drive the company get out of the trouble by seizing opportunities and making innovation. There comes a conclusion that the entrepreneurs as the agent of economic change so that it makes huge contributions to economic growth.( Oscar, Javier & Pablo, 2009)

It is far from enough for explaining the entrepreneurship in economic rationale. Economic perspective ignores the special human abilities and differences in human values, capabilities and power of human will result in different practical solutions. Therefore, it is essential to take the personality into account. Personality traits aim to using the characteristics of individual to explain the differences of individual actions when facing the similar conditions. Personality traits also explain the behaviors of entrepreneurs. There is no doubt that the individual personality of entrepreneurs stimulates their passions, social interactions and creativeness. In order to give a deep understanding of entrepreneurship, there are several traits which have a close relationship with entrepreneurship.( Littunen, 2000)

Innovation is the soul of entrepreneurship. Hampered by...
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