The Definition of Entrepreneurship

In political economicsentrepreneurship is the quality of being an entrepreneur, i.e. one who “undertakes an enterprise”. The term puts emphasis on the risk and effort taken by individuals who both own and manage a business, and on the innovations resulting from their pursuit of economic success.

“Entrepreneurship” in this sense may result in new organizations or may be part of revitalizing mature organizations in response to a perceived opportunity. The most obvious form of entrepreneurship is that of starting new businesses (referred as startup company); in recent years, the term has been extended to include social and political forms of entrepreneurial activity”. When entrepreneurship is describing activities within a firm or large organization it is referred to as intra-preneurship and may include corporate venturing, when large entities spin-off organizations.

According to Paul Reynolds, an “entrepreneurship scholar” and creator of the Global Entrepreneurship Monitor, “by the time they reach their retirement years, half of all working men in the United States probably have a period of self-employment of one or more years; one in four may have engaged in self-employment for six or more years. Participating in a new business creation is a common activity among U.S. workers over the course of their careers.” And in recent years has been documented by scholars such asDavid Audretsch to be a major driver of economic growth in both the United States and Western Europe. “As well, entrepreneurship may be defined as the pursuit of opportunity without regard to resources currently controlled (Stevenson,1983)”

Entrepreneurial activities are substantially different depending on the type of organization and creativity involved. Entrepreneurship ranges in scale from solo projects (even involving the entrepreneur only part-time) to major undertakings creating many job opportunities. Many “high value” entrepreneurial ventures seek venture capital or angel funding (seed money) in order to raise capital to build the business. Angel investors generally seek annualized returns of 20–30% and more, as well as extensive involvement in the business. Many kinds of organizations now exist to support would-be entrepreneurs including specialized government agencies, business incubatorsscience parks, and some NGOs. In more recent times, 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.g. in the form of social entrepreneurshippolitical entrepreneurship, or knowledge entrepreneurshiphave emerged.

Since 2008, an annual “Global Entrepreneurship Week” has been announced, with the aim of “exposing people to the benefits of entrepreneurship” and getting them to “participate in entrepreneurial-related activities”.

 

Source : Wikipedia

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