1. Amity Global Business School Entrepreneurship Development BBA - VI Entrepreneurship“Entrepreneurship is a process of giving birth to an enterprise”. Economist Joseph Schumpeter has given a significant contribution in understanding theconcept of entrepreneurship. According to him, “An entrepreneur is a person who is willing andable to convert a new idea or invention into a successful innovation.” In the view of Schumpeteran entrepreneur employs “the gale of creative destruction.” Creative destruction can be definedas the process of creating new product, business model, or other business innovations byreplacing the old ones. Thus, new products and technologies developed by entrepreneurs overtime make current products and technologies obsolete. For example, before the advent ofmobile phones, pagers were very popular among people, but with the invention of mobilephones, pagers became obsolete. Therefore, Schumpeter held the argument that creativedestruction is the main factor behind economic growth and industry dynamism. He also held aview that entrepreneurship results not only in new industries, but also in new combinations ofcurrently existing inputs. Schumpeter exemplified this concept with the invention of a steamengine, which was used to develop a horseless carriage. Further, the horseless carriage wastransformed into a car. This formation of car from steam engine was not the development of anew technology, but the application of existing technologies in a novel manner.Thus, we can say that entrepreneurship is an act of bearing risks, bringing innovation,generating employment, and mobilizing resources.Entrepreneurs and entrepreneurship play a significant role in the socio-economic developmentof a nation. Entrepreneurs set up enterprises and generate employment for people in theirenterprises. This helps in reducing unemployment, which is the main cause of all socio-economic problems as well as results in increasing the total income of a country. Moreover,goods and services produced by entrepreneurs, after meeting the domestic demand, areexported to foreign countries to earn foreign exchange. In this way, entrepreneurs play asignificant role in the country‟s growth and prosperity in terms of production, employmentgeneration, and export. The significance of entrepreneurship is explained in the followingpoints: Raises productivity through technical and other forms of innovation Generates employment opportunities by establishing new enterprises Facilitates the transfer of technology Plays a strategic role in commercializing new inventions and products Facilitates the proper utilization of resources Improves the standard of living Plays a crucial role in the restructuring and transforming economy Facilitates a balanced economic development Brings dynamism in industries by launching innovative products and services Creates new markets and facilitates expansion into international markets 2. Entrepreneurship is the pursuit of market opportunities to produce innovative goods andservices. Once the enterprise gets established, the entrepreneurial process becomes effectivelya recurring progress of opportunities. It becomes the process of allocating scarce resourcesjudiciously to pursue the value-adding opportunities. The steps involved in the entrepreneurialprocess are explained as follows:Deciding to become an entrepreneur: Refers to the first step of the entrepreneurial process inwhich an individual decides to start his/her own enterprise. The desire to become anentrepreneur may be triggered by any on the following factors: Arising of an innovative idea backed up the ability to start a business Inheriting wealth and skills to establish an enterprise Prevailing problems in current jobs Willing to become own boss Pursuing own ideas Realizing the need of earning moneyIdentifying and evaluating the opportunity: Refers the second stage of the entrepreneurialprocess. In this process, the entrepreneur...
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