Entrepreneurship Reading Answers

Entrepreneurship is the progression of designing, launching and running an innovative business, which is habitually primarily a small business. The people who produce these businesses are called entrepreneurs. Entrepreneurship has been defined as the "capacity and will to progress, establish and manage a business project along with any of its risks to make a turnover." While explanations of entrepreneurship typically emphasis on the launching and running of businesses, due to the high risks involved in launching a start-up, a substantial proportion of start-up businesses have to close due to "deficiency of funding, bad business choices, an economic disaster, dearth of market demand, or a blend of all of these."

A wider definition of the term is occasionally used, particularly in the field of economics. In this usage, an Entrepreneur is a unit which has the skill to find and act upon openings to translate inventions or technologies into products and services: "The entrepreneur is able to identify the commercial potential of the invention and establish the capital, talent, and other resources that turn a discovery into a commercially feasible innovation." In this sense, the term "Entrepreneurship" also captures innovative actions on the part of established firms, in addition to parallel activities on the part of new businesses. Entrepreneurship is an act of being an entrepreneur, or "the owner or manager of a business enterprise who, by risk and initiative, shots to make profits". Entrepreneurs act as managers and supervise the launch and development of an enterprise. Entrepreneurship is the course by which either an individual or a team classifies a business opportunity and obtains and positions the necessary resources essential for its manipulation. Early-19th-century French economist Jean- Baptiste Say provided an extensive definition of entrepreneurship, saying that it "moves economic resources out of an area of lower and into an area of higher productivity and superior yield". 

Entrepreneurs generate something new, something diverse-they change or transmute values. Regardless of the firm size, big or small, they can contribute in entrepreneurship opportunities. The prospect to become an entrepreneur needs four criteria. First, there must be opportunities or circumstances to recombine resources to produce profit. Second, entrepreneurship involves differences between people, such as privileged access to certain individuals or the capability to identify information about opportunities. Third, taking on risk is a need. Fourth, the entrepreneurial process entails the organization of people and resources. The entrepreneur is a factor and the study of entrepreneurship reaches back to the work of Richard Cantillon and Adam Smith in the late 17th and early 18th centuries. Though, entrepreneurship was mainly overlooked theoretically until the late 19th and early 20th centuries and empirically until a thoughtful renaissance in business and economics since the late 1970s. In the 20th century, the understanding of entrepreneurship owes much to the work of economist Joseph Schumpeter in the 1930s and other Austrian economists such as Carl Menger, Ludwig von Mises and Friedrich von Hayek. According to Schumpeter, an entrepreneur is a person who is keen and able to translate a new idea or invention into a positive innovation. Entrepreneurship employs what Schumpeter called "the gale of creative destruction" to substitute in whole or in part inferior innovations across markets and industries, at the same time generating new products with new business models. In this way, imaginative destruction is largely accountable for the dynamism of industries and long-run economic growth. The belief that entrepreneurship leads to economic growth is an interpretation of the residual in endogenous growth theory and as such is fiercely argued in academic economics The exploitation of entrepreneurial opportunities may comprise, developing a business plan, hiring the human resources, attaining financial and material resources, providing leadership, being responsible for both the venture's success and failure and lastly, risk aversion.

Entrepreneurship may function within an entrepreneurship ecosystem which often comprises:

- Government programs and services that encourage entrepreneurship and support entrepreneurs and start-ups.

- Non-governmental organizations such as small-business associations and organizations that offer guidance and mentoring to entrepreneurs (e.g.

through entrepreneurship centers or websites)

- Small-business advocacy organizations that lobby governments for amplified support for entrepreneurship programs and more small business

-friendly laws and regulations

- Entrepreneurship resources and amenities (e.g. business incubators and seed accelerators)

- Entrepreneurship education and training programs presented by schools, colleges and universities

- Financing (e.g. bank loans, venture capital financing, angel investing and government and private foundation grants)

In the 2000s, usage of the term "entrepreneurship" prolonged to include how and why some individuals (or teams) recognize opportunities, evaluate them as viable, and then decide to exploit them. The term has also been used to discuss how people might use these opportunities to develop new products or services, launch new firms or industries, and make wealth. The entrepreneurial process is undefined because opportunities can only be acknowledged after they have been exploited. Entrepreneurs display positive biases towards finding new possibilities and seeing unmet market requirements, and a bent towards risk-taking that makes them more likely to exploit business opportunities.