The Nature of Entrepreneurship

The Nature of Entrepreneurship

To an economist, an entrepreneur is one who brings resources, labor, materials, and other assets into combinations that make their value greater than before, and also one who introduces changes, innovations, and a new order.

To a psychologist, such a person is typically driven by certain forces – the need to obtain or attain something, to experiment, to accomplish, or perhaps to escape the authority of others.

To one businessman, an entrepreneur appears as a threat, an aggressive competitor, whereas to another businessman the same entrepreneur may be an ally, a source of supply, a customer, or someone who creates wealth for others, as well as finds better ways to utilize resources, reduce waste, and produce jobs others are glad to get.

Entrepreneurial Behavior

Although being an entrepreneur means different things to different people, there is agreement that we are talking about a kind of behavior that includes:

  1. initiative taking
  2. the organizing and reorganizing of social and economic mechanisms to bundle resources in innovative ways, and
  3. the acceptance of risk, uncertainty, and/or the potential for failure.

Entrepreneurship is a dynamic process of creating incremental wealth. The wealth is created by individuals who assume the major risks in terms of equity, time, and/or career commitment to provide value for some product or service.

Entrepreneurship is the process pf 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.

Entrepreneurs respond to, and create, change through their entrepreneurial actions, where entrepreneurial actions refers to behavior in response to a judgmental decision under uncertainty about a possible opportunity for profit.

By | 2016-11-16T14:51:09+00:00 February 1st, 2016|Entrepreneurship|Comments Off on The Nature of Entrepreneurship

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