Lesson1:

Concept of
Entrepreneurship
 Entrepreneurship
• Entrepreneurship is a catchword on this
era of globalized economy. It is a
foundation and catalyst for economic
growth and innovation across nation.
• It is interesting to note that over the years,
the meaning of entrepreneurship has had a
lot of variations. These are some of
definitions that have been given to
entrepreneurship from early on to the
present time.
 Entrepreneurship
Contributor Definition

Knight (1921) Having profits from being uncertainty and

risk.
• Entrepreneurship is a catchword on this
Schumpeter (1934) Carrying out of new combinations of firm
era of globalized economy.
organization It is a new services,
– new products,
foundation and catalyst
new sources formaterial,
of raw economicnew methods
of production, new
growth and innovation markets,
across new forms of
nation.
organization.
• It is (1952)
Hoselitz interesting to note
Uncertainly that over the years,
bearing…coordination of
the meaning productive
of entrepreneurship has had
resources…introduction of a
innovations
lot of variations. Theseandareprovision
someof ofcapital.

definitions
Cole (1959) that have activity
Purposeful been togiven
initiateto
and develop a
profit-oriented business.
entrepreneurship from early on to the
McClelland (1961) Taking moderate risk.
present time.
 Entrepreneurship
Shapero (1975) A kind of behavior that include: (1) initiative
taking, (2) the organizing or reorganizing of social
economic mechanisms to turn resources and
situations to practical account, and (3) the
• Entrepreneurship
acceptanceisofarisk
catchword
failure. on this
era of globalized
Casson (1982)
economy. It is a
Decisions and judgments about the coordination
foundation and catalyst
of scare resources.for economic
growth and innovation
Ronstadt (1984)
across nation.
Dynamic process of creating incremental wealth.
• It is interesting to note
This wealth thatbyover
is created the who
individuals years,
assume
the major risks in terms of equity, time, and/or
the meaning career
of entrepreneurship has had a
commitment of providing value for some
lot of variations.
productThese are
or service. Thesome ofservice itself
product or
may or may not be new or unique, but value
definitions that have been given to
must somehow be infused by the entrepreneur by
entrepreneurship
securingfrom earlytheon
and allocating to theskills and
necessary
present time.resources.
 Entrepreneurship
Drucker (1985) Behavior rather than personality trait. Its
foundation lies in concept and theory rather than
in intuition.
Gartner (1985) Creation of new organizations.
• Entrepreneurship is a catchword on this
Hisrich & Brush Process of creating something new with value of
era of globalized
(1985) economy.
devoting the necessaryIt isand
time a effort: assuming
foundation and catalyst for
the accompanying economic
financial. Psychic, and social
risks and uncertainties: and receiving the
growth and innovation across nation.
resulting the rewards of monetary and personal
• It is interesting to note that over the years,
satisfaction.

the meaning
Stevenson & of entrepreneurship
Pursuit hastohad a
of opportunity without regard
Grousebeck (1989) resources currently controlled.
lot of variations. These are some of
definitions
Hart, Stevenson, andthat have
Pursuit been given
the opportunity withoutto
regard to
Dial (1995) resources currently controlled, but contained by
entrepreneurship from early on to the
the founders’ previous choices and industry-
present time.related experience.
Shane (2003)
Entrepreneurship
An activity that involves the discovery, evaluation
and exploitation of opportunities to introduce
new goods and services, ways of organizing,
markets, processes, and raw materials through
• Entrepreneurship
organizingis a catchword
efforts that previously on this
had not existed.
era of globalized economy. It is a
foundation and
Kuratko (2009)
catalyst for economic
Dynamic process of vision, change, and creation
growth and innovation across nation.
that requires an application of energy and
passion toward the creation and implementation
• It is interesting to note that over the years,
of new ideas and creative solutions.
the meaning of entrepreneurship has had a
lotand
Dyck ofNeubert
variations. These
Conceiving are some
an opportunity ofnew or
to offer
(2012) improved goods or services, showing the initiative
definitions that have
to pursue thatbeen given
opportunity, to plans,
making
entrepreneurship from
mobilizing early necessary
the resources, on to the to convert

present time.the opportunity into reality.

 Entrepreneurship
Although each of these definitions views
entrepreneurship from a slightly difference
perspective, they all contain the following
common elements:
• Innovation
• Opportunity seeking and exploitation
• Resource mobilizing
• Encountering skills and uncertainties
• Economic and personal rewards
 Entrepreneurship
There are a lot of factors that influence the
friendliness of a country to entrepreneurs; among
these are the employment regulations, bankruptcy
laws, and tax policies of a country. Culled from the
various sources, here are examples of
entrepreneurship in these 10 countries:
1. United States 6. Taiwan
2. China 7. Hong Kong
3. Singapore 8. Thailand
4. Canada 9. Malaysia
5. India 10. South Korea
 Entrepreneurship
There are many concepts and theories about
its genesis. However, based on its key features,
there were three basic ideas that explain the
appearance of entrepreneurial activity.
• The first focuses on the individual, in other
words, entrepreneurial action is conceived as
a human attribute, such as the willingness to
face uncertainty, accepting risks, the need for
achievement, which differentiate
entrepreneurs from the rest of society.
 Entrepreneurship
• The second fundamental idea
emphasizes economic and
environmental factors that motivate
and enable entrepreneurial activity,
such as the dimension of markets, the
dynamic of technological changes, the
structure of the market or merely the
industrial dynamic.
 Entrepreneurship
• The third factor is linked to the
functioning of institutions, culture
and societal values. This approach is
not exclusive given that
entrepreneurial activity is also a
human activity and does not
spontaneously occur solely due to the
economic environment or
technological, normative or
demographic changes.