Entrepreneurship Def: Entrepreneurship is an activity which involves a risk and starts as something new.

Entrepreneur is the word from French and literally translated, means Between-Taker or Go-Between Nature and Evolution of Entrepreneurship: Earliest Period: An example for entrepreneur as go-between is Marco Polo, he attempted to establish trade routes to Far East. As a Go Between, He would sign a Contract with a money person to sell his goods. A Common Contract during this time provided a loan to merchant adventurer at a 22.5% rate, including insurance. While the capitalist was a passive risk bearer, the merchant-adventurer took the active role in the trading, bearing all physical and emotional risks. When the merchant-adventurer sold the goods and completed the trip, the profits were distributed with the capitalist taking most of them (upto 75%), remaining with the Merchant-adventurer (25%). Middle Ages In the middle ages the word entrepreneur was used to describe both an actor and a person who managed large production projects. In such large production projects, this individual did not take any risks, but merely managed the project using the resources provided, usually by the government of the country. A typical entrepreneur in the middle ages was the cleric- the person in charge of great architectural works, such as castles and fortification, public buildings etc. 17th Century The reemergent connection of risk with entrepreneurship developed in the 17th Century, with an entrepreneur being a person who entered into a contractual agreement with the government to perform a service or to supply stipulated products. Since the price was fixed, any resulting profits or losses were the entrepreneurs. 18th Century In the 18th century, the person with capital was differentiated from the one who needed capital. In other words, the entrepreneur was distinguished from the capital provider (present days a venture capitalist). One reason for this differentiation was the industrialisation occurring through out the world, as was the case with the inventions of Eli Whitney and Thomas Edison. Both were developing new technologies and were unable to finance their inventions themselves. Whereas Whitney financed his cotton gin with expropriate British crown property. Edison raised capital from private sources to develop and experiment in the field of electricity and chemistry. Both Whitney and Edison were the capital users. 19th and 20th Centuries In the late and 19th and 20th Centuries, entrepreneurs were frequently not distinguished from managers and were viewed mostly from an economic perspective. Especially in the 20th Century the notion of Entrepreneur as an innovator was established. The function of an entrepreneur is to reform or revolutionarise the pattern of production by exploiting an invention or more generally an untried technological method of producing a new commodity or producing an old one in a new way, opening a new source of supply of materials or a new outlet for products, by organising a new industry.

Concepts of Entrepreneurship Entrepreneur traits, creativity, innovation, business planning and growth management are five of the main concepts of entrepreneurship (Davison, 2006). The three concepts of entrepreneurship which we find most amazing are innovation, business planning and growth management. An entrepreneur must be innovative. This is achieved by (1) Developing new products or services (2) Developing new methods of production (3) Identifying new markets (4) Discovering new sources of supply, and (5) Developing new forms of organizations This content, creates an impression that the heart of entrepreneurship is to find a need and fill it .This amazes, one because of its simplicity. There is not much to entrepreneurship but to provide what society needs. If a need is fulfilled, then money can come out of such an endeavor. Surely, people will flock to what you provide because they have a need for it. Activities of Entrepreneurship 1. Action-oriented 2. Involves calculated risks 3. Involves much planning 4. Starts small and grows 1.
Action-oriented.

The key word in this characteristic is action; something is always moving. Owning a startup most likely means managing it as well, at least at the beginning. The management concept means many things like: Making sure your business runs smoothly and efficiently; Finding a market for your product; Meeting the changing demands of your product in the marketplace; Having in place the necessary operations to allow your business to operate successfully; Maintaining a productive and efficient workforce. 2.
Involves calculated risks.

The key word in this characteristic is calculated. There is risk involved in every business. You can do preparation to make sure you minimize risk as much as possible but sometimes, you get surprises, both positive and negative. However, someone must take responsibility for the decisions. That person is you. The more planning you do, the more you can minimize risk and increase the likelihood of success. One of the challenges in starting a business is financing. It takes money to start and maintain a business, whether it is a one-person operation or a larger operation. It is not easy to have an accurate financial estimate in the beginning. Thats why it is important to plan for the unexpected; consider the calculated financial risks during the start-up time. This step is even more important if one have a family and dependents. 3. Involves much planning.

The key word in this characteristic is planning. Operating a successful business involves knowing how to do many things and having many skills and talents. A good piece of advice for any entrepreneur is to do your homework and educate yourself in every aspect of the business opportunity you want to pursue. Having the power to set your own policies (such as working hours) and having the power to keep all the profits provides a wonderful sense of independence. While the prospect of independence is exciting, it also brings responsibilities and challenges. In the long run, if your business does poorly, you are still responsible for your business debts. It is critical to understand and accept the financial responsibilities and legal ramifications of establishing a business before you make that final decision. 4. Starts small and grows. The key word in this characteristic is grows. It takes time for a business to grow. Success does not happen overnight. Hopefully, this growth will be positive. What can you expect from the experience?