ENTREPRENEURSHIP: Definition and explanation
Entrepreneurship is one of the four mainstream economic factors: land, labour, capital, and entrepreneurship. According to Timmons and Spinelli (2004) p3, “entrepreneurship plays an important role in the economic and social structure development of the nation and of course the whole world. It determines how the nation and the world live, work, learn, and lead in this century and beyond”. It is a purposeful activity that includes initiation, promotion and distribution of wealth and service. Entrepreneurship is a risk taking activity and challenging tasks which needs utmost devotion, total commitment and greater sincerity with fullest involvement for its growth and personality by the enterprising individuals. This field has been neglected for so long partly because of the disagreements arising from the problem of demarcation and partly because it is characterized by uncertainties and occurs in the imperfect information and market failures. It is again difficult to classify it because of the presence of dynamic market environments under which entrepreneurs operate. This essay presents the meaning, environment success factors, and challenges associated with entrepreneurship. Kilby (1983) defines entrepreneurship as “a large animal, which has been hunted by many individuals using various ingenious trapping devices. He adds that all who claim to have caught sight of him report that he is enormous, but they disagree on his particularities. Not having explored his current habitat with sufficient care, some hunters have used as bait their own favourite dishes and have then tried to persuade people that what they caught was a Heffalump. Shane and Venkataraman (2000) define entrepreneurship as “the pursuit of lucrative opportunities by enterprising individuals (entrepreneurs)”. It is proactive and involves creation of new systems, resources, or processes to produce new goods or services and/or serve new markets, Lumpkin and Dess (1996). This pursuit of profitable opportunities has led to emergence of technological developments and hence economic growth. Bateman and Snell (2009) seem to be convinced by Schumpeter’s observation that, in every industry, new technological development has completely changed rules of competition. For instance, leading companies that respond ineffectively to technological opportunities can falter while new companies emerge as the dominant competitors. For example, Malawi Telecommunications Limited (MTL) used to lead the communication industry in Malawi but because of rigidity to technological changes TNM and Airtel out performed it with wireless phones, while G4S, Fedex and DHL mail and other parcel delivery hence dominated the market even the remotest areas.
Entrepreneurship is more concerned with the idea and the opportunity lying ahead. In entrepreneurship you don’t have to be first with a product/service idea if you can figure out a way to execute an existing idea better than the competition. That’s IBM combined existing components and Microsoft’s operating system to launch a personal computer that eventually beat Apple’s and Atari’s earlier models. Entrepreneurs use a variety of ways to exploit opportunities in entrepreneurship. That’s using various ingenious trapping devices to explore domains that big companies avoid and introduce goods or services that capture the market because they are simpler, cheaper, more accessible or more convenient. Possibilities arising from technological discoveries such as microcomputers, biotechnology, nanotechnology etc; demographic changes, lifestyle and taste changes e.g. increased interests in music has brought Internet music downloads programs (YouTube); economic dislocations such as booms or failures; calamities such as wars and natural disasters; government initiatives and rule changes e.g. the towards energy efficiency has brought the use of energy saver bulbs installation and solar energy acquisition, provide...
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