ale Encyclopedia of Small Business: Entrepreneurship

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An entrepreneur is one who organizes a new business venture in the hopes of making a profit. Entrepreneurship is the process of being an entrepreneur, of gathering and allocating the resources—financial, creative, managerial, or technological—necessary for a new venture's success. One engages in entrepreneurship when one begins to plan an organization that uses diverse resources in an effort to take advantage of the newly found opportunity. It usually involves hard work, long hours, and, usually, the hope of significant financial return. More importantly, entrepreneurship is characterized by creative solutions to old or overlooked problems; ingenuity and innovation are the entrepreneur's stock in trade. By taking a new look at difficult situations, the entrepreneur discerns an opportunity where others might have seen a dead end. Entrepreneurship is also a source of more entrepreneurship. Societies around the world have always been fueled by the innovations and new products that entrepreneurs bring to the market. All big businesses started out small, usually as one man or woman with a good idea and the willingness to work hard and risk everything. While it is true that many new businesses fail, the ones that succeed contribute a great deal to the creation of other new ventures which leads, in turn, to a dynamic national economy. Indeed, today's economists and business researchers cite entrepreneurship as a key component of future economic growth in North America and around the world. "Entrepreneurship is viewed as the catalyst to transfer a segment of our new generation of [downsized] people into self-employed business owners who will, in turn, provide jobs for the rest," wrote Mitch Lenko in CMA. "It is viewed as the necessary component to the creation of new wealth; and hopefully represents the fountainhead from which will spawn innovative management techniques for the design, manufacture and marketing of products that will compete globally."

Successful entrepreneurship depends on many factors. Of primary importance is a dedicated, talented, creative entrepreneur. The person who has the ideas, the energy, and the vision to create a new business is thecornerstone to any start-up. But the individual must have ready access to a variety of important resources in order to make the new venture more than just a good idea. He or she needs to develop a plan of action, a road map that will take the venture from the idea stage to a state of growth and institutionalization. In most instances, the entrepreneur also needs to put together a team of talented, experienced individuals to help manage the new venture's operations. Entrepreneurship also depends on access to capital, whether it be human, technological, or financial. In short, entrepreneurship is a process that involves preparation and the involvement of others in order to exploit an opportunity for profit.
Entrepreneurship Defined

The multiplicity of the entrepreneur's motivations and goals leads to questions aimed at distilling the essence of entrepreneurship. To what or to whom does one refer when one uses the word? Is there any difference between a person who opens yet another dry cleaning establishment, sandwich shop, or bookstore and the entrepreneur? If so, what is it that separates the two? What characteristics define an entrepreneur and entrepreneurship itself? Historians and business writers have struggled with providing the answers. Even today, there is no widely accepted definition, but the variety of possibilities provides important clues as to what makes entrepreneurship special. Harvard professor Joseph Schumpeter, for example, argued that the defining characteristic of entrepreneurial ventures was innovation. By finding a new "production function" in an existing resource—a previously unknown means through which a resource could produce value—the entrepreneur was innovating. The innovation was broadly understood; an innovation could take place in product design, organization of the firm, marketing devices, or process design. Nevertheless, innovation was what separated the entrepreneur from others who undertook closely related endeavors. Other researchers, such as professor Arthur Cole, defined

He demystified the topic. the sense that entrepreneurs are like magicians. He argued that Schumpeter's type of innovation can be systematically undertaken by managers to revitalizebusiness and nonbusiness organizations. creating thriving . Their definition could theoretically include all types and sizes of organizations with a wide variety of functions and goals. autonomy. Peter F. By combining managerial practices with the acts of innovation. and risk taking. Cole's entrepreneur was a builder of profit-minded organizations. Drucker's definition of entrepreneurship—a systematic. Still other observers. The Entrepreneurial Personality Writing in his book The Entrepreneurial Mind. These researchers focus on activities rather than organizational make-up in examining entrepreneurship. contending that entrepreneurship is something that can be strategically employed by any organization at any point in their existence. In his book Innovation and Entrepreneurship." His definition captures the spirit of the word. business can create a methodology of entrepreneurship that will result in the institutionalization of entrepreneurial values and practice. Drucker understood entrepreneurship as a tool to be implemented by managers and organizational leaders as a means of growing a business. maintain. Drucker took the ideas set forth by Schumpeter one step further. professional discipline available to anyone in an organization—brings our understanding of the topic to a new level. Drucker argued. resource gathering. and develop a profit-oriented business. The important part of this definition is the requirement that individuals must create a new business organization in order to be considered entrepreneurial. Jeffry Timmons defined entrepreneurship as "the ability to create and build something from practically nothing. have argued that all organizations and individuals have the potential to be entrepreneurial. such as Shapero and Sokol.entrepreneurship as purposeful activity to initiate. whether it be a start-up or a firm with a long history. They contend that entrepreneurship is characterized by an individual or group's initiative taking.

every race and ethnic setting. Timmons's words hint at the myths inherent in the common understanding of entrepreneurship. some personality traits seem to be more important than others. It is the one quality which entrepreneurs themselves admit is critical to the success of their initiatives. asset management. Robert C. and from every educational background. including creativity and the ability to tolerate ambiguous situations. But there are other. all age groups. "That quality is 'commitment'. communication abilities. They bring to mind the great entrepreneurs who have become icons of American business mythology. They come from every walk of life. Entrepreneurs make their ownmold. and short and small. There is no mould for the entrepreneur. marketing strategies. self-confidence.). It is the common thread in the lives and biographies of those that have succeeded in new enterprises. "While many authors and researchers have disagreed on the relative significance of individual entrepreneurial traits. In his book Entrepreneurship: Texts.organizations out of good ideas by virtue of hard work. Ronstadt indicated some additional traits that help entrepreneurs build thriving organizations." Other traits commonly cited as important components of entrepreneurial success include business knowledge (business planning. male and female. it is self-motivation that distinguishes successful entrepreneurs from those that fail. all agree on one quality that is essential to all entrepreneurs. regardless of definition. for as Lanko indicated. Many businesspeople believe that entrepreneurs have a personality that is different than those of "normal" people." wrote Lanko." But while it is hard to generalize about what it takes to be a successful entrepreneur. personality characteristics that an entrepreneur should develop as a means of further ensuring their success." But defining the various characteristics and qualities that embodyentrepreneurial success can be an elusive task. and personal skills. canny business dealing. and courage. "today's entrepreneurs are big and tall. Cases. Entrepreneurs are seen as having "the right stuff. less obvious. . technical and other skills. etc. Notes.

Often. owners of new ventures need to be able to decide how to best use a small advertising budget or how best to use their limited computer resources. the entrepreneur may lose sight of his or her purpose. an entrepreneur must be able to tolerate the ambiguity and uncertainty that characterize the first years of a new organization. personal or work history has led individuals to be more open to taking the risks involved with undertaking a new venture. Furthermore. Finally. entrepreneurs should have experience in the same industry or a similar one. For instance. individuals who know successful entrepreneurs may be stimulated to try their hand at running their own business. "Starting a business is a very demanding undertaking indeed. they must be creative in their ability to find capital. For instance. the ability of an entrepreneur to find unique solutions could be the key to his or her success. environmental factors often play a significant part in influencing would-be entrepreneurs. The successful entrepreneurs act as role models for those thinking about undertaking a new venture. or markets. It is no time for onthe-job training. Entrepreneurial success is often directly predicated on the business owner's ability to make do with the limited resources available to him or her. In addition. In nearly all cases. team members. "First and foremost." insisted thePortable MBA in Entrepreneurship. causing uncertainty for the venture and for the entrepreneur. One of the most vexing situations entrepreneurs face is the allocation of scarce resources. business or market conditions are bound to change during the first few years of a new business's life. but without the ability to handle the pressure that uncertainty brings upon an organization. providing proof that entrepreneurship does not always end in bankruptcy. Being creative enables entrepreneurs to more successfully manage businesses in new and ambiguous situations. In addition to being creative. work experience can provide entrepreneurs with invaluable experience and knowledge from which to draw. If would-be entrepreneurs do not have the right .Creative solutions to difficult problems may make or break the young and growing business.

Successful new ventures do not appear magically out of the swirl of the marketplace. What sticks in our memories are the qualities of a great entrepreneur. Successful entrepreneurs. This first step in the entrepreneurial process is where the entrepreneur determines what kind of potential market exists for the business and forms a rough idea of how to penetrate the existing market. and managed. work hard to build their organizations. they are planned. the innovation and opportinity are identified. and the business begins to take shape. they should either go out and get it before starting their new venture or find partners who have it. however. it must make crucial decisions about the way the business will be run. During the concept formation stage. the entrepreneur must answer hard questions about the potential business as well as his or her own motivations for starting his or her own business. and a stage where the organization is actually created." The Process of Entrepreneurship The myths that have grown up around the great entrepreneurs in America have focused more on the personality of the individual than on the work that he or she did to create a prosperous organization. those personality traits that "make" a great businessperson. starting from little and undertaking a process that results in a thriving business. All entrepreneurs go through three very general stages in the process of creating their ventures: a concept formation stage where ideas are generated. created. a resource gathering stage where necessary resources are brought together to launch the new business. . growth. and innovation. Even the best ideas become profitable only because the entrepreneur went through the steps necessary to build a company from the ground up.experience. Before any business opens its doors. CONCEPTFORMATION. It is important to understand some of the stages a businessperson must go through in order to create a successful entrepreneurial venture. The answers to these questions will provide the framework for future planning.

Quantitative analysis of the opportunity is a vital part of the conceptualization of the business.There is a great deal that is unknown to the entrepreneur before he or she starts out. it is a question of recognizing a good opportunity when you see one and having the skills to convert that opportunity into a thriving business. Nevertheless. Others are looking to capture a certain percentage of the market and thus increase their wealth. A new business can be opened by anyone with the capital and time to do it. Among the first questions an entrepreneur should ask are those that explore the potential profitability of the venture. The viability of the venture depends on the individual's ability to lessen that which is unknown and maximize that which is known." wrote William D. Before taking the plunge. Bygraves in The Portable MBA in Entrepreneurship. prospective entrepreneurs should investigate the extent to which their envisioned business will give them an opportunity to meet their goals. you must be prepared. The central question an entrepreneur should ask him or herself during the idea generation stage is whether there is actually an opportunity for a successful venture. will starting a new business enable the entrepreneur to accomplish things or meet personal and professional goals that he or she might not otherwise meet? Some entrepreneurs want to make a certain return on their efforts and investment or are looking to run a business that will afford them a certain lifestyle. "In entrepreneurship. including competitive pressures and capital start-up requirements. . "There is no more luck in becoming successful at entrepreneurship than in becoming successful at anything else. That is. The entrepreneur should be able to estimate sales and selling expenses as well as other costs of doing business. The results of "running the numbers" and creating a set of figures with which the future can be planned will enable the entrepreneur to determine whether the potential business will be profitable. the entrepreneur should investigate the size and other characteristics of the potential market for the product or service. Still others go into business for themselves because it would afford them the independence and freedom that working for someone else would not. To do that. businesses that will be successful for years to come must maintain a certain level of financial soundness. In order to develop a sense of the economic feasibility of a venture.

and because their founders were able to carve out an adequate amount of time—a most valuable resource. Without a sufficient supply of resources the opportunity might never be turned into a business that makes money for the entrepreneur. Many entrepreneurial ventures that manage to succeed do so in part because they were launched at an opportune time. 2) begin looking for a new entrepreneurial opportunity that is a better fit. after all—to attend to the myriadstart-up needs of the business. that of gathering the necessary resources. The first stage of the entrepreneurship process should give the individual enough information to decide whether or not the business has the capacity to meet the individual's personal and professional goals. When the patent expires. efficient ways that meet the needs of thefledgling organization.So in entrepreneurship. Human resources refers to the individuals who will help the entrepreneur take advantage of the opportunity. or 3) beings the second step in the entrepreneurial process. stock ownership. In the resource gathering stage the entrepreneur begins to assemble the tools that he or she will need to make the business idea a successful one. Capital can be financial (in the form of cash. human/managerial." RESOURCE GATHERING. just like any other profession. a person has to gather three types of primary resources: capital. An often-overlooked consideration in the resource gathering stage is time. a business based on a patented technological innovation has a certain amount of time to operate before the patent expires and competitors can duplicate the innovation. For instance. either as employees of the new organization or as paid and unpaidcounselors. the entrepreneur may: 1) continue to work in his or her present employment capacity. bringing them together in advantageous. In order to create a viable organization. intellectual (patents. and time. an entrepreneur has to be ready and able to manage the resources at his or her disposal. trademarks. or loans). brand names and copyrights). the competitive advantage held by the business is diminished or . luck is where preparation and opportunity meet. and technical (innovations in design or production that competitors can not or will not duplicate). In general. Once the decision has been made.

suppliers. The entrepreneur who runs the business has a certain amount of time before potential competitors notice that the business is (or will be) profitable. . employees. and educates new employees. establishes the strategic focus. ORGANIZATION CREATION AND DEVELOPMENT. the entrepreneur sets the philosophy of the organization. As the founder of the organization. an entrepreneur must be comfortable in all the roles. however. In that time frame—the window of opportunity—the entrepreneur who found the opportunity must manage resources so that the business is established and protected from the threat of competition. prospective clients. the entrepreneur goes from being just a visionary to a visionary with a business to run. In order to successfully manage a new venture. The roles that an entrepreneur must fill demand flexibility and creativity. In this role. In such instances. the would-be entrepreneur also needs to avoid the common mistake of rushing in to take advantage of the opportunity without adequately addressing all of the various elements that produce a successful start-up. One way to examine the changing managerial activities of the entrepreneur is to look at the different roles filled by the entrepreneur as the business develops. Other businesses may be based on selling to an emerging market. Entrepreneurship and Leadership Entrepreneurs must also be able to balance their managerial duties with leadership activities. This stage of the entrepreneurial process is the actual establishment and opening of the business. In addition. most entrepreneurs serve as the primary promoters for their new start-ups. During this stage. entrepreneurs are often called upon to provide counsel or advice to community members or employees. and others. the entrepreneur lays the groundwork for the emerging corporate culture. They must act as the new venture's chief spokesperson in contacts with financial backers.gone. In other words. they have to be able to handle both the day-today operations of the business as well as decision making obligations that determine the organization's long-term direction. as founders (or founding team members) of organizations. In addition.

Indeed. 2d ed. Change must be seen as a positive for a business to remain entrepreneurial. innovation has to be a primary strategy of the venture. researchers contend that many otherwise talented entrepreneurs have failed because they were unable to strike an appropriate balance between details of management and the larger mission that guides the new venture." In Encyclopedia of Entrepreneurship. The Portable MBA in Entrepreneurship. and future. . John Wiley & Sons. entrepreneurs should search for ways to delegate some of their management tasks rather than their leadership tasks. William D. in most cases the new business has long been far more dependent on its founder's leadership and vision than on his or her ability to monitor product quality or select new computers.. and vital organization. Kent. Therefore. Sexton. That is. 1997. Robert H. Donald L. but entrepreneurs must be both managers and visionaries in order to build their organizations. Prentice-Hall. After all.. Further Reading: Brockhaus. In general. Bygrave. Sr. It is a precarious relationship. "The Psychology of the Entrepreneur. If the venture is to remain dedicated to entrepreneurship. ed. Drucker pointed out that the venture must be receptive to innovation and open to the possibilities inherent in change. management has to take the lead in establishing the patterns that will lead to a dynamic. It is at this point that staffing decisions can become a critical component of long-term business success. The mission of the new venture can only be fulfilled if the entrepreneur remains entrepreneurial throughout the life of the organization. edited by Calvin A. 1982. Many entrepreneurs eventually reach a point where they realize that these twin obligations can not be fully met alone. and Karl H. flexible.philosophy. Vesper. management of an entrepreneurial organization requires policies that encourage innovation and rewards those who innovate.

Lord Publishing. Jeff. 1986. Robert. Mitch. Ronstadt. McGrath. Lenko. Context. Harvard Business School Press. and William C. April-June 2000. July-August 1995. Entrepreneurship: Texts. 1985. Drucker.Collins. The Entrepreneurial Mind. 2000. Brick House Pub. 1989.              Unanswered Questions New Answers Q&A Categories Coupons Guides Sign In | Sign Up Home Search Settings Top Contributors Help Center Home Ask us any Featured Videos: . Jeffry A. Timmons. "Knowledge. Hamilton. Harper & Row. Lazier. 1995. James C. and Learning in the Small Business. Dalley." International Small Business Journal. "Entrepreneurship: The New Tradition. and Bob Hamilton. Co. Beyond Entrepreneurship: Turning Your Business into an Enduring Great Company. Rita Gunther. Cases & Notes. June 2000. Peter F. "Does Entrepreneurship Pay?" Journal of Political Economy. Prentice Hall." CMA—The Management Accounting Magazine. Innovation and Entrepreneurship: Practice and Principles. The Entrepreneurial Mindset. and Ian MacMillan.. Barton H.. Entrepreneurship Top Home > Library > Miscellaneous > Wikipedia Entrepreneurship is the implementation of an individual's talent in the resources in which he is available with. half of all working men in the United States probably have a period of self-employment of one or more years. social success.1983)"[4] .[2] According to Paul Reynolds.S.[1] This may result in new organizations or may be part of revitalizing mature organizations in response to a perceived opportunity. the term has been extended to include social and political forms of entrepreneurial activity. one in four may have engaged in self-employment for six or more years.Top View more Business & Finance videos Wikipedia on Answers.Entrepreneurship comes from the French verb 'entreprendre' which means 'To undertake.' is the act and art of being an entrepreneur or one who undertakes innovations or introducing new things.e. "by the time they reach their retirement years. Participating in a new business creation is a common activity among U. when large entities spin-off organizations. When entrepreneurship is describing activities within a firm or large organization it is referred to as intrapreneurship and may include corporate venturing. workers over the course of their careers. in recent years. and expanding these resources in the future so that one can get individual as well as general i. entrepreneurship scholar and creator of the Global Entrepreneurship Monitor."[3] And in recent 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. finance and business acumen in an effort to transform innovations into economic goods. entrepreneurship may be defined as the pursuit of opportunity without regard to resources currently controlled (Stevenson. The most obvious form of entrepreneurship is that of starting new businesses (referred as Startup Company). "As well.

as well as extensive involvement in the business. business incubators. Angel investors generally seek annualized returns of 20-30% and more. or knowledge entrepreneurship have emerged. Many "high value" entrepreneurial ventures seek venture capital orangel funding (seed money) in order to raise capital to build the business. Entrepreneurship ranges in scale from solo projects (even involving the entrepreneur only part-time) to major undertakings creating many job opportunities. In more recent times. political entrepreneurship.Entrepreneurial activities are substantially different depending on the type of organization and creativity involved. and some NGOs. in the form of social entrepreneurship.[5] Many kinds of organizations now exist to support would-be entrepreneurs including specialized government agencies. science parks. the term entrepreneurship has been extended to include elements not related necessarily to business formation activity such as conceptualizations of entrepreneurship as a specificmindset (see also entrepreneurial mindset) resulting in entrepreneurial initiatives e. Contents             1 History 2 Characteristics of an entrepreneur 3 Concept 4 Promotion 5 Financial Bootstrapping 6 External financing 7 Entrepreneurship Education 8 Entrepreneurship Research 9 See also 10 References 11 Further reading 12 External links History .g.

entrepreneurship resulted in new industries but also in new combinations of currently existing inputs.The entrepreneur is a factor in microeconomics. In Schumpeter. was transformational but did not require the development of a new technology. incremental improvements which reduced the cost and improved the technology led to the complete practical replacement of beast drawn vehicles in modern transportation. In this case the innovation. an entrepreneur is a person who is willing and able to convert a new idea or invention into a successful innovation. the car. the understanding of entrepreneurship owes much to the work of economist Joseph Schumpeterin the 1930s and other Austrian economists such as Carl Menger. creative destruction is largely responsible for the dynamism of industries and long-run economic growth. simultaneously creating new products including new business models. merely the application of existing technologies in a novel manner. Despite Schumpeter's early 20th-century contributions.[6] Entrepreneurship employs what Schumpeter called "the gale of creative destruction" to replace in whole or in part inferior innovations across markets and industries. The supposition that entrepreneurship leads to economic growth is an interpretation of the residual in endogenous growth theory and as such is hotly debated in academic economics. It did not immediately replace the horsedrawn carriage. In this way. but in time. Ludwig von Mises and Friedrich von Hayek. traditional microeconomic theory did not formally consider the . For Schumpeter. An alternate description posited by Israel Kirzner suggests that the majority of innovations may be much more incremental improvements such as the replacement of paper with plastic in the construction of a drinking straw. In the 20th century. Schumpeter's initial example of this was the combination of a steam engine and then current wagon making technologies to produce the horseless carriage. and the study of entrepreneurship reaches back to the work ofRichard Cantillon and Adam Smith in the late 17th and early 18th centuries. but was largely ignored theoretically until the late 19th and early 20th centuries and empirically until a profound resurgence in business and economics in the last 40 years.

Knight classified three types of uncertainty. bearing risk. Ambiguity. For Schumpeter. Knight[7] (1921) and Peter Drucker (1970) entrepreneurship is about taking risk. True Uncertainty or Knightian Uncertainty. In this treatment the entrepreneur was an implied but unspecified actor. which is impossible to estimate 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 the number of other colored balls). For Frank H. the entrepreneur did not bear risk: the capitalist did. among other things. which is hard to measure statistically (such as the probability of drawing a red ball from a jar containing 5 red balls but with an unknown number of white balls).  Risk. Different scholars have described entrepreneurs as. but it is consistent with the concept of the entrepreneur being the agent of xefficiency. which is measurable statistically (such as the probability of drawing a red color ball from a jar containing 5 red balls and 5 white balls).   . 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 name of an idea.entrepreneur in its theoretical frameworks (instead assuming that resources would find each other through a price system). Some notable persons and their works in entrepreneurship history. spending much time as well ascapital on an uncertain venture.

however trait-based theories of entrepreneurship are increasingly being called into question. Zoltan Acs and David Audretsch have produced an edited volume surveying Entrepreneurship as an academic field of research. The place of the disharmony-creating and idiosyncratic entrepreneur in traditional economic theory (which describes many efficiency-based ratios assuming uniform outputs) presents theoretic quandaries. William Baumol has added greatly to this area of economic theory and was recently honored for it at the 2006 annual meeting of the American Economic Association. Entrepreneurs are often contrasted with managers and administrators who are said to be more methodical and less prone to risk-taking.[11] similar to the early great man theories of leadership.The acts of entrepreneurship are often associated with true uncertainty. even if a market already exists. nowadays. not least as many real-life entrepreneurs operate in teams rather than as single individuals.[8] The entrepreneur is widely regarded as an integral player in the business culture of American life. policy and social influences as part of the Global Entrepreneurship Monitor (GEM)[10] and its associated reports. Such person-centric models of entrepreneurship have shown to be of questionable validity. and particularly as an engine for job creation and economic growth. information on this site is not available Characteristics of an entrepreneur Entrepreneurs have many of the same character traits as leaders. particularly when it involves bringing something really novel to the world. Still. However. a vast literature studying the entrepreneurial personality argues that certain traits seem to be associated with entrepreneurs: .[9] and more than a hundred scholars around the world track entrepreneurial activity. Robert Sobel published The Entrepreneurs: Explorations Within the American Business Tradition in 1974. there is no guarantee that a market exists for a particular new player in the cola category. whose market never exists.

that is. and unsentimental. Woo. These types are not related to the personality but to the type of opportunity the entrepreneur faces.       Qualities 1. to be nomadic and to learn endlessly.argue that entrepreneurs exhibit extreme optimism in their decision-making processes.[12] David McClelland .found there are four types of entrepreneur: the innovator.primarily motivated by an overwhelming need for achievement and strong urge to build. ingeniousness and resourcefulness. they are cunning.focused specifically on creative entrepreneurship. prone to insights.prone to overconfidence and over generalizations. the over-optimistic promoter. Cole . & Dunkelberg .mercurial. Confidence The entrepreneur does not ask questions about whether they can succeed or whether they are worthy of success. They are confident with the knowledge that they will make their businesses succeed. Open Minded . Disciplined These individuals are focused on making their businesses work. Successful entrepreneurs are disciplined enough to take steps every day toward the achievement of their objectives. brainstorms. deceptions. the calculating inventor. Bird . They seldom are willing to submit to authority. opportunistic. Collins and Moore . He found that entrepreneurs in the creative industries needed a specific set of traits including the ability to prioritise ideas over data. pragmatic people driven by needs of independence and achievement. They exude that confidence in everything they do. 2. They have overarching strategies and outline the tactics to accomplish them. Cooper. and eliminate any hindrances or distractions to their goals. creative. and the organization builder.tough. John Howkins . 3. Busenitz and Barney .

8. 6. Entrepreneurs often come up with solutions which are the synthesis of other items. Strong work ethic . They set the parameters and make sure that projects follow that path. people skills and potential new businesses. 4. They have the ability to look at everything around them and focus it toward their goals.[13] 7. 9. Competitive Many companies are formed because an entrepreneur knows that they can do a job better than another. Creativity One facet of creativity is being able to make connections between seemingly unrelated events or situations. They need to win at the sports they play and need to win at the businesses that they create. They will repurpose products to market them to new industries. They are proactive. Self Starter Entrepreneurs know that if something needs to be done. They look at defeat as an opportunity for success. they should start it themselves. 5. Ideas are constantly being generated about workflows and efficiency. They are very good at highlighting the benefits of any situation and coaching others to their success.Entrepreneurs realize that every event and situation is a business opportunity. Determination Entrepreneurs are not thwarted by their defeats. They are determined to make all of their endeavors succeed. Successful entrepreneurs do not believe that something cannot be done. Most successful entrepreneurs know how to motivate their employees so the business grows overall. Strong people skills The entrepreneur has strong communication skills to sell the product and motivate employees. not waiting for someone to give them permission. An entrepreneur will highlight their own company’s track record of success. so will try and try again until it does.

Promotion Given entrepreneurship's potential to support economic growth. Once they see it. It may be distinguished as an ability to take risk independently to make utmost earnings in the market. whether they are in or out of the workplace. It is the process of planning. They will come in on their days off to make sure that an outcome meets their expectations. they want to go further. It is hope and dreams of millions of individuals around the world. Concept It has assumed super importance for accelerating economic growth both in developed and developing countries. It reduces unemployment and poverty and it is a pathway to prosper. Entrepreneurship is the process of exploring the opportunities in the market place and arranging resources required to exploit these opportunities for long term gain. This can be done in a number of ways: by integrating entrepreneurship into education systems. it is the policy goal of many governments to develop a culture of entrepreneurial thinking. and their businesses soar as a result.The successful entrepreneur will often be the first person to arrive at the office and the last one to leave. opportunities and assuming. They are willing to put in those extra hours to make the business succeed because there is a joy their business gives which goes beyond the money. 10. legislating to encourage risktaking. . Successful entrepreneurs want to see what the view is like at the top of the business mountain. and national campaigns. Their mind is constantly on their work. An example of the latter is the United Kingdom's Enterprise Week. The successful entrepreneur will always be reading and researching ways to make the business better. Thus it is a risk of business enterprise. They genuinely love their work. It promotes capital formation and creates wealth in country. Passion Passion is the most important trait of the successful entrepreneur. They know how to talk to their employees. organising. It is a creative and innovative skill and adapting response to environment.

Bootstrapping can be defined as “a collection of methods used to minimize the amount of outside debt and equity financing needed from banks and investors”. Many successful companies including Dell Computers and Facebook were founded this way.[16] The use of private credit card debt is the most known form of bootstrapping. research has been conducted on the presence of entrepreneurial theories in doctoral economics programs. fellow at the Ratio Institute in Sweden. but a wide variety of methods are available for entrepreneurs. downsizing and further chaos.[14] Many of these initiatives have been brought together under the umbrella of Global Entrepreneurship Week. finds such content to be sparse. which started in 2008. a worldwide celebration and promotion of youth entrepreneurship. Dan Johansson. entrepreneurship and creativity are factors that can save the corporate sector from plunging into a downward spiral of unemployment. There are different types of bootstrapping:      Owner financing Sweat equity Minimization of the accounts receivable Joint utilization Delaying payment .[15] Mokale Financial Bootstrapping Financial bootstrapping is a term used to cover different methods for avoiding using the financial resources of external investors.Outside of the political world. the absence of any other stakeholder gives the founders more freedom to develop the company. He fears this will dilute doctoral programs and fail to train young economists to analyze problems in a relevant way. Empirical evidence obtained from real-world data also suggests that in transition economy and in troubled times. While bootstrapping involves a risk for the founders.

remains with the catalyts of the Australian Graduate school of Entrepreneurship (AGSE) at Swinburne University of Technology. . and in some cases business contacts and experience . but also financial oversight. Melbourne. accountability for carrying out tasks and meeting many cases in return for an equity stake. technological and socio-environmental importance of entrepreneurship. Entrepreneurship Research Most Entrepreneurial research hot spots occur within a large entrepreneurial community such as the Masters of entrepreneurship and innovation (MEI) alumui and entrepreneurship PHD students at Swinburne University and Babson college which focuses primarily on the characteristics of entrepreneurs and the changes within the business culture as the result of more entrepreneurial management and thinking. Entrepreneurship Education Most prominately entrepreneurship education and the teaching of the adedemic culture of entrepreneurship. and in this case a range of options are available including:      Angel Investors Venture capital investors. Australia which in March 1989 formed the first Master of Entrepreneurship and Innovation which teaches the corporate. Crowd funding Hedge Funds Alternative Asset Management Some of these source provide not only funds. also Swinburne has an undergraduate entrepreneurship program that teaches entrepreneurship from a grassroots level.   Minimizing inventory Subsidy finance Personal Debt External financing Many businesses need more capital than can be provided by the owners themselves.

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