Theories of Entrepreneurship
Introduction
Entrepreneurship is a phenomenon that is driving the world economy today and aptly so because entrepreneurship is the process of creating economic and social value by means of taking risks, creating and exploiting opportunity and generating new ideas. Entrepreneurship is all pervasive and can exist in any industry and market. Also, entrepreneurship is not limited to creating new ventures; entrepreneurship also exists in large corporations like Google and 3M where employees are encouraged to spot opportunities, take risks and innovate. People who carry out the process of entrepreneurship are known as entrepreneurs.
The term entrepreneur originates from the French word entreprendre which means to undertake. The concept of the entrepreneur has existed and evolved overtime; from the Middle Ages was when the term was first coined, and an entrepreneur was considered a manager of sorts handling projects on behalf of the church or landowners, to the 19th century where JB say defined an entrepreneur as ‘someone who consciously moves economic resources from an area of lower productivity into that of higher productivity and greater yield. The present day entrepreneur is best described by Drucker’s definition of being someone who ‘always searches for change, responds to it and exploits it as an opportunity (Stokes and Wilson 2006). Drucker’s definition aptly sums up all definitions of an entrepreneur in modern literature as being a risk taker, a catalyst for change, achievement oriented, etc.
N.R Smith (1967, cited in Mitra, 2009) classifies entrepreneurs into two broad categories – the ‘Craftsman’ and the ‘Opportunistic’ entrepreneur. The ‘craftsman’ is characterised by lack of education and social awareness, which limits his/her confidence. This typology of entrepreneurs tends to create bureaucratic firms which tend to stagnate. The ‘Opportunistic’ entrepreneur is well educated and trained and thereby socially aware and confident of his/her abilities. This
Entrepreneurship is a phenomenon that is driving the world economy today and aptly so because entrepreneurship is the process of creating economic and social value by means of taking risks, creating and exploiting opportunity and generating new ideas. Entrepreneurship is all pervasive and can exist in any industry and market. Also, entrepreneurship is not limited to creating new ventures; entrepreneurship also exists in large corporations like Google and 3M where employees are encouraged to spot opportunities, take risks and innovate. People who carry out the process of entrepreneurship are known as entrepreneurs.
The term entrepreneur originates from the French word entreprendre which means to undertake. The concept of the entrepreneur has existed and evolved overtime; from the Middle Ages was when the term was first coined, and an entrepreneur was considered a manager of sorts handling projects on behalf of the church or landowners, to the 19th century where JB say defined an entrepreneur as ‘someone who consciously moves economic resources from an area of lower productivity into that of higher productivity and greater yield. The present day entrepreneur is best described by Drucker’s definition of being someone who ‘always searches for change, responds to it and exploits it as an opportunity (Stokes and Wilson 2006). Drucker’s definition aptly sums up all definitions of an entrepreneur in modern literature as being a risk taker, a catalyst for change, achievement oriented, etc.
N.R Smith (1967, cited in Mitra, 2009) classifies entrepreneurs into two broad categories – the ‘Craftsman’ and the ‘Opportunistic’ entrepreneur. The ‘craftsman’ is characterised by lack of education and social awareness, which limits his/her confidence. This typology of entrepreneurs tends to create bureaucratic firms which tend to stagnate. The ‘Opportunistic’ entrepreneur is well educated and trained and thereby socially aware and confident of his/her abilities. This
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