What Is an Entrepreneur?

An entrepreneur is an individual who creates a new

business, bearing most of the risks and enjoying
most of the rewards. The entrepreneur is
commonly seen as an innovator, a source of new
ideas, goods, services, and business/or
procedures.
ENTREPRENEURSHIP
The capacity and willingness to develop, organize and
manage a business venture along with any of its risks in
order to make a profit. The most obvious example of
entrepreneurship is the starting of new businesses.
In economics, entrepreneurship combined with land,
labor, natural resources and capital can produce profit.
Entrepreneurial spirit is characterized by innovation and
risk-taking, and is an essential part of a nation's ability to
succeed in an ever changing and increasingly
competitive global marketplace.
“The entrepreneur always searches for
change, responds to it and exploits it
as an opportunity.” (Peter Drucker)
The evolution of the field of
entrepreneurship has been formulated
by scholars based on theories that are
rooted in economics, psychology,
sociology, anthropology and
management.
Entrepreneurship has an
enormous impact on the
economy and in the society.
Globally, the level of
entrepreneurial activity has
contributed significantly to the
national level of economic
growth of many countries.
ENTREPRENEURIAL ACTIVITIES
Entrepreneurial activity responds to policies
that ensure the protection of new ideas,
facilitate access to capital and talent,
allow the management of risks.
There are many efforts in various countries to
uplift the lives of its citizens.
Entrepreneurship is one of the key engines of
economic growth.
Entrepreneurship is perceived to be the symbol
of business innovation, determination,
perseverance and achievement.
It is a catchword in this era of globalized
economy
It is a foundation and catalyst for economic
growth and innovation across nation
Small and Medium Enterprises (SMEs) are
concrete manifestations of entrepreneurship.
Joseph Schumpeter, an Austrian economist,
was the one who first articulated the
importance of entrepreneurship to the
economy and in the society in 1934.
DEFINITION OF ENTREPRENEURSHIP FROM
EARLY ON TO PRESENT
ENTREPRENEURSHIP
Knight 1921 – having profits from bearing
uncertainty and risk
Schumpeter 1934 – carrying out of new
combinations of firm organization—new
products, new services, new sources of
raw material, new methods of production,
new markets, new forms of organization
Hoselitz 1952 – uncertainty bearing…
coordination of productive
resources… introduction of
innovations and provision of capital.
Cole 1959 – purposeful activity to
initiate and develop a profit oriented
business.
McClelland 1961 – taking moderate risk
Shapero 1975 – a kind of behaviour that
includes : initiative taking, organizing or
reorganizing of social economic
mechanisms to turn resources and
situations to practical account and the
acceptance of risk failure
Casson 1982 – decisions and judgements
about the coordination of scarce
resources.
Ronstadt 1984 – dynamic process of
creating incremental wealth. This wealth is
created by individuals who assume the
major risks in terms of equity, time and/or
career commitment of providing value for
some product or service. The product or
service itself may or may not be new or
unique, but value must somehow be infused
by the entrepreneur by securing and
allocating the necessary skills and
resources.
Drucker 1985 – behaviour rather than
personality trait. Its foundation lies in
concept and theory rather than in intuition.
Gartner 1985 – creation of new organizations
Hisrich & Brush 1985 – process of creating
something new with value by devoting the
necessary time and effort; assuming the
accompanying financial, psychic and social
risks and uncertainties; and receiving the
resulting rewards of monetary and personal
satisfaction.
Stevenson & Grousebeck 1989 – pursuit of
opportunity without regard to resources
currently controlled.
Hart, Stevenson and Dial 1995 – pursuit of
opportunity without regard to resources
currently controlled, but constrained by
the founders’ previous choices and
industry related experience.
Shane 2003 – 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 thorough
organizing efforts that previously had not
existed.
Kuratko 2009 – dynamic process of vision,
change and creation that requires an
application of energy and passion toward
the creation and implementation of new
ideas and creative solutions.
Dyck and Neubert 2012 – conceiving an
opportunity to offer new or improved goods
or services, showing the initiative to pursue
that opportunity, making plans, mobilizing
the resources necessary to convert the
opportunity into reality.
CONTRIBUTIONS OF ENTREPRENEURSHIP TO THE
ECONOMY AND SOCIETY
Create employment
Develop new markets
Introduces innovation
Generates new sources of materials
Stimulates investment interest in the new
business ventures being created
Improves the quality of life
Serves as role models
Brings social benefits to the people
Utilizes and mobilizes indigenous resources
Provides more alternatives for consumers
EXAMPLES OF ENTREPRENEURSHIP IN 10
COUNTRIES
United States – noted to be one of the
friendliest countries for entrepreneurs, home
to Apple, Google, Starbucks, Walmart and
Walt Disney
China – home to budding entrepreneurs who
manufacture different products that range
from toys, gadgets, electronics and cars; a lot
of products have generic brand names
Singapore – literally a small country
that controls a significant portion of the
economy in Asia, home to entrepreneurs
who innovate on existing services for local
and international use.
Canada – entrepreneurs here are exploring
opportunities over the internet such as the
people from a region called Sanikiluag,
known for their wood carving skills and
entrepreneurs are selling their products
online.
India – one of the countries in the Asia
Pacific rim with a strong base of
entrepreneur organizations led by the
youth and women.

Taiwan – entrepreneurship here is

encouraged through the small and
medium enterprise incubation centers for
the purpose of nurturing young firms, new
products and technologies.
*** incubators – provide space, facilities, hands
on management assistance and access to
technologies and financing to clients, helping
them to survive and grow during the start-up
period.
Hongkong – with the knowledge based economy,
it utilizes its human resources to make its
economy the best possible through
entrepreneurship such as activities related to
tourism and agricultural exports which receives
strong support from government and private
sector.
Thailand – the extent of government
support to entrepreneurs is very evident,
in its international airport in Bangkok, a
huge section is subsidized by the Bureau
of Small and Medium Enterprises for the
promotion of local products. Tourism for
the international markets and agricultural
exports are two major sources of income
of Thai entrepreneurs.
Malaysia – this country is becoming
friendlier to entrepreneurs which is
apparent in the growing numbers of
businesses which decided to locate here.

South Korea – it emerged from the Asian

financial crisis better than any other
country in the region, home to Samsung
and Kia.