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Published by Mohammed Yunus

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Published by: Mohammed Yunus on Oct 07, 2013
Copyright:Attribution Non-commercial


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What is entrepreneurship?In  political economics, 
is the quality of being anentrepreneur ,i.e. one who "undertakes an enterprise
The term puts emphasis onthe risk and effort taken by individuals who both own and manage a business,and on the innovations resulting from their pursuit of economic success. "Entrepreneurship" in this sense may result in new organizations or may be part of revitalizing mature organizations in response to a perceived opportunity. The most obvious form of entrepreneurship is that of starting new  businesses  (referred as startup company); in recent years, the term has been extended to include social and political forms of entrepreneurial activity".Whenentrepreneurship is describing activities within a firm or large organization it isreferred to as intra-preneurship and may include corporate venturing, when large entities spin-off organizations.
 According to
Paul Reynolds
, an "entrepreneurship scholar" and creator of theGlobal Entrepreneurship Monitor ,"by the time they reach their retirement years,half of all working men in the United States probably have a period of self-employment of one or more years; one in four may have engaged in self-employment for six or more years. Participating in a new business creation is acommon activity among U.S. workers over the course of their careers. And inrecent years has been documented by scholars such as David Audretsch to be a major driver of  economic growth in both the United States and Western Europe. "As well, entrepreneurship may be defined as the pursuit of opportunity withoutregard to resources currently controlled (Stevenson,1983)Entrepreneurial activities are substantially different depending on the type of organization and creativity involved. Entrepreneurship ranges in scale from solo projects (even involving the entrepreneur only part-time) to major undertakingscreating many job opportunities. Many "high value" entrepreneurial venturesseek  venture capital or  angel funding (seed money)in order to raise capital to  build the business. Angel investors generally seek annualized returns of 20
30% and more, as well as extensive involvement in the business.Many kinds of organizations now exist to support would-be entrepreneurs including specializedgovernment agencies,  business incubators, science parks,and some  NGOs.In more recent times, the term entrepreneurship has been extended to includeelements not related necessarily to business formation activity such as
conceptualizations of entrepreneurship as a specific mindset (see also entrepreneurial mindset) resulting in entrepreneurial initiatives e.g. in the formof  social entrepreneurship,  political entrepreneurship,or  knowledge entrepreneurship have emerged.Since 2008, an annual"Global Entrepreneurship Week " has been announced, with the aim of "exposing people to the benefits of entrepreneurship" andgetting them to "participate in entrepreneurial-related activities".
Definition of entrepreneurship by famous person
Schumpeter According to Schumpeter, an entrepreneur is a person who is willing andable to convert a new idea or invention into a successful innovation. Entrepreneurship employs what Schumpeter called "the gale of  creativedestruction" to replace in whole or in part inferior innovations acrossmarkets and industries, simultaneously creating new products includingnew business models.In this way, creative destruction is largely responsible for the dynamism of industries and long-run economic growth.The supposition that entrepreneurship leads to economic growth is aninterpretation of the residual in endogenous growth theory and as such is hotly debated in academic economics. An alternate description posited byIsrael Kirzner suggests that the majority of innovations may be much moreincremental improvements such as the replacement of paper with plastic inthe construction of a drinking straw.
For Schumpeter, entrepreneurship resulted in new industries but also in newcombinations of currently existing inputs. Schumpeter's initial example of thiswas the combination of a steam engine and then current wagon makingtechnologies to produce the horseless carriage. In this case the innovation, thecar, was transformational but did not require the development of a newtechnology, merely the application of existing technologies in a novel manner.It did not immediately replace the horsedrawn carriage, but in time, incrementalimprovements which reduced the cost and improved the technology led to thecomplete practical replacement of beast drawn vehicles in moderntransportation. Despite Schumpeter's early 20th-century contributions,traditional microeconomic theory did not formally consider the entrepreneur in its theoretical frameworks (instead assuming that resources would find eachother through a price system). In this treatment the entrepreneur was an implied but unspecified actor, but it is consistent with the concept of the entrepreneur  being the agent of  x-efficiency. 
Different scholars have described entrepreneurs as, among other things, bearingrisk. For Schumpeter, the entrepreneur did not bear risk: the capitalist did.
Knight and Drucker
For  Frank H. Knight(1921) and Peter Drucker  (1970) entrepreneurship is about taking risk .The behavior of the entrepreneur reflects a kind of person willing to  put his or her career and financial security on the line and take risks in the nameof an idea, spending much time as well as capital on an uncertain venture. Knight classified three types of uncertainty.
Risk, which is measurable statistically (such as the probability of drawinga red color ball from a jar containing 5 red balls and 5 white balls).
Ambiguity, which is hard to measure statistically (such as the probabilityof drawing a red ball from a jar containing 5 red balls but with anunknown number of white balls).
True Uncertainty or Knightian Uncertainty, which is impossible toestimate or predict statistically (such as the probability of drawing a red ball from a jar whose number of red balls is unknown as well as thenumber of other colored ballsAmbassador-at-Large for Global Women's Issues Melanne Verveer greets participants in the African Women's Entrepreneurship Program at theDepartment of State in Washington, D.C.

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