Entrepreneurship by M.

Mansoor Sultan
INTRODUCTION
 Introduction to Entrepreneurship
Entrepreneurs have always been present, however their behavioural patterns were different in different periods of
time.

The word entrepreneur was derived from the French word “entreprendre”, which means “to undertake” (Kuratko,
2016).

The usage of the term entrepreneur can be traced from 1755, wherein an entrepreneur was described to “buy the
country produce from those who bring it or to order it to be brought on their account. They pay a certain price to
resell wholesale or retail at an uncertain price” (Cantillon, 1931, p.51; Hamilton & Harper, 1994)

Entrepreneur from the very beginning, was principally an independent speculator of the commodity (Hamilton &
Harper, 1994)
 Introduction to Entrepreneurship

In the modern day markets, the term entrepreneur has been closely linked with economic development.
An economic development can emerge due to several reasons, which includes:
(a) the launch of new source of procurement for raw materials or materials
(b) the introduction of a new production mechanism
(c) the introduction of a new quality of product, or a novel product
(d) the opening of new market
(e) the re-organisation of a business.
The management of all these aspects are carried by an enterprise, and the people whose functions are to carry out
these activities are called entrepreneurs (Bull & Willard, 1993)
 Introduction to Entrepreneurship

take risks whilst

innovators or transform the create value
In contemporary seeking rewards for
developers who opportunities into through multiple
markets, their ventures and
identify and capture merchandisable stakeholders and
entrepreneur act as: efforts (Kuratko,
opportunities concepts resources
2016)
 Definition of an Entrepreneur
To date, several definitions have been penned to describe an entrepreneur. And some of them are
mentioned herewith:

Entrepreneur is someone who manages all the necessary resources to produce and market a product which responds to the
market scarcity (Leibenstein, 1968; Bull & Willard, 1993).

“Entrepreneurs are individuals who recognize opportunities where others see chaos contradiction, and confusion. They are
aggressive catalysts for change within the marketplace” Kuratko (2016, p.3)

“Entrepreneur is the person who carries out new combinations, causing discontinuity. The role is completed when the
function is completed. The person may be an employee with an existing organisation or may start a new venture. An
investor per se only risks capital for a return.” Bull & Willard (1993, p. 186)
 Characteristics of an Entrepreneur
The main characteristics of the entrepreneur are due to their sociological and psychological factors. Some of those characteristics are
mentioned below:
Entrepreneurs are vision-oriented people

Entrepreneurs have a high need in achievement

Entrepreneurs do not rely on fate or luck, however they try to control their own lives

Entrepreneurs undertake moderate risks, which is why they look for high earning on their investments

Entrepreneurs have the abilities to deal with several ambiguous situations in their ventures. They face these ambiguous situations and
circumstances regularly because they do certain jobs and tasks which are entirely new by nature.
Entrepreneurs have the tendency to be productive and efficient with in a given period of time. However, at times, they might be seen as
inflexible individuals in team-work.
 Risk takers

Flexible
Traits of an Entrepreneur Knowledgeable

Some of the common traits of entrepreneurs are : Independent

Energetic

Creative

Dynamic leader

Responsive to suggestions or
criticisms

Resourceful

Initiators

Persistent
Description of Entrepreneurship

Entrepreneurship is an “act of establishing a new venture” Christensen et al,

(2000, p.4)

Entrepreneurship can also be considered as the function through which growth

and development can be achieved without commencing a new business venture.
It offers a process by which people either inside the companies or on their own,
look for prospects without regard to the resources they presently control
(Stevenson et al, 1989; Stevenson & Jarillo, 1990).

However, “an entrepreneurial organisation is that which pursues opportunity,

regardless of resources currently controlled” Stevenson & Jarillo (1990, p.23).
Definition of Entrepreneurship

“Entrepreneurship is the creation of

organisations. What differentiates entrepreneurs
from non-entrepreneurs is that entrepreneurs
create organisation, while non-entrepreneurs do
not. In behavioural approaches to the study of
entrepreneurship, an entrepreneur is seen as a set
of activities involved in organisation creation,
while in trait approaches an entrepreneur is a set
of personality traits and characteristics” Gartner
(1988, p.11)
 CHAPTER # 1
THE ENTREPRENEURIAL REVOLUTION
 ENTREPRENEURS CHALLENGING THE
UNKNOWN
Entrepreneurs are individuals who recognise opportunities where others see chaos or confusion.
They are aggressive catalysts for change within the marketplace.
• They have been compared to Olympic athletes challenging themselves to break new barriers, to
long-distance runners dealing with the agony of the kilometers,
• to symphony orchestra conductors who balance the different skills and sounds into a cohesive
whole,
• or to top-gun pilots who continually push the envelope of speed and daring.
Whatever the passion, because they all fi t in some way, entrepreneurs are the heroes of today’s
marketplace.
OUR ENTREPRENEURIAL ECONOMY

Entrepreneurship is the symbol of business tenacity and achievement.

Entrepreneurs are the pioneers of today’s business successes. Their sense of
opportunity, their drive to innovate and their capacity for accomplishment have
become the standard by which free enterprise is now measured. This standard is
taking hold throughout the entire world within the free and open economies.
Predominance of new ventures in the economy
The past decade has witnessed the powerful emergence of entrepreneurial activity
throughout the world. It is increasingly new and small fi rms, rather than large ones, that
are the major providers of job creation engines.
High growth versus lifestyle
During the past few years, the number of new venture start-ups in Australasia has been
consistently high. Evidence shows that entrepreneurial start-ups lead to high growth, wealth
and jobs. Around the world, generally 8–9 per cent of the adult population is involved in
start-ups. However, only about 1–2 per cent of the adult population (10–20 per cent of all
entrepreneurs) in countries as diverse as Australia and China are involved in high-growth
start-ups, defi ned as a new venture that ‘expects to create 19 or more jobs within 5 years after
the business has started’.8 These are the ones that we hear so much about.
Though they may be the backbone of an economy, most entrepreneurs only want to achieve
modest goals. They fund their lifestyles and families but do not actively contribute to the
growth of the dynamic economy. Many may never achieve anything new nor create any
wealth; they merely optimise supply and demand in established markets and add nothing of
value. The ability to identify a good potential opportunity does not automatically guarantee a
successful business, let alone a value-creating business. They are more interested in the ‘three
Bs’ (boat, beach house and BMW).
High growth versus lifestyle
 Entrepreneurs’ contribution to the economy

Entrepreneurial firms make two indispensable contributions to the economy. First, they are an integral part of
the renewal process that pervades and defi nes market economies. Entrepreneurial fi rms play a crucial role
in the innovations that lead to technological change and productivity growth. In short, they are about change
and competition because they change market structure. The economies of our region are dynamic entities
always in the process of ‘becoming’. It is about prospects for the future, not about the inheritance of the past.
Second, entrepreneurial fi rms are the essential mechanism by which millions enter the economic and social
mainstream of society. Small businesses enable millions of people, including women, ethnic minorities,
indigenous peoples and immigrants, to fi nd prosperity for themselves and their families. Another benefi t is
the way that entrepreneurship can also play a positive role in delivering health, education and welfare
services effi ciently. Social economy enterprises encourage the participation of stakeholders in the
management and delivery of such services, enhancing innovation and client-orientation. Such an approach
can supplement public resources and extend the range of services offered to consumers.
 TRENDS IN ENTREPRENEURSHIP RESEARCH
The major themes that characterise recent research about entrepreneurs and new-venture
creation can be summarised as follows:
• The boundaries of entrepreneurship as a field are permeable and cross-disciplinary but there is a growing culture
and knowledge base within the fi eld. Nonetheless, since it is an ‘emerging’ fi eld, it has a reputation for
‘accumulative fragmentalism’.
• Entrepreneurs may actually use different cognitive process than other people to identify and evaluate
opportunities. Research on cognition is looking at how they make mental leaps and develop viable hunches before
these can be methodologically explained. Entrepreneurs are excellent at combining (sometimes scarce) resources to
start new ventures. They are different from the general population in that crucial ability to fi nd the necessary
inputs.
• Entrepreneurs are masters at ‘know-who’, meaning access to networks and processing information. In chaotic
markets, entrepreneurs somehow become alert and develop knowledge by making information investments that
others do not.
• Venture fi nancing, including classic venture capital, angel capital fi nancing and informal fi nancing, emerged in
the 1990s with unprecedented strength, peaked at the beginning of the millennium and has grown back to 1998
levels.
 TRENDS IN ENTREPRENEURSHIP RESEARCH

• Intrapreneurship (that is, entrepreneurship within large organisations) and the need for entrepreneurial
cultures have gained much attention during the past few years.
• Entrepreneurial entry strategies have been identified that show some important common denominators,
issues and trade-offs.
• The risks and trade-offs of an entrepreneurial career – particularly its demanding and stressful nature –
have been a subject of keen research interest relevant to would-be and practicing entrepreneurs alike.
• Women, minority, immigrant and indigenous entrepreneurs have emerged in unprecedented numbers.
They appear to face obstacles and difficulties different from those that other entrepreneurs face.
• Demographic trends are producing a large cohort of senior-preneurs (also known as grey, older, Third
Age, or elderly entrepreneurs).
 TRENDS IN ENTREPRENEURSHIP RESEARCH

• Entrepreneurial education has become an increasingly sought-after subject at universities. The number of
schools teaching a new-venture or similar course has grown from as few as two dozen 20 years ago to more
than 2000 at this time.
• The interest in entrepreneurship at business schools grows unabated. It is largely student and alumni-
driven. There is a shortage of entrepreneurship faculty, and courses are heavily staffed with part-timers,
who provide ‘war stories’ but little theory and context.
• The entrepreneurial spirit is universal among the free economies, judging by the enormous growth of
interest in entrepreneurship around the world in the past few years.
• The economic and social contributions of entrepreneurs, new companies and family businesses have been
shown to make immensely disproportionate contributions to job creation, innovation and economic
renewal, compared with the contributions that the largest companies make.
TRENDS IN ENTREPRENEURSHIP EDUCATION

Entrepreneurship education is one of the fastest growing disciplines in the world

today. The growth and development in curricula and programs devoted to raising
the level of enterprise and new venture creation has been remarkable. American
research shows that students – be they in art or architecture, sport or health – who
have had just one course in entrepreneurship or personal enterprise are more
likely to be self-employed, to start successful businesses and to launch social
enterprises.
The trend towards proprietorship and self-
employment is impressive (US Data)