Defining Entrepreneurship Entrepreneur and Innovation †Free Samples

Question: Discuss about the Defining Entrepreneurship Entrepreneur and Innovation. Answer: Entrepreneurship Entrepreneurship is defined by scholars as an activity that requires discovery, assessment, exploitation, and utilization of opportunities to bring forward new products and services, new methods of organizing markets, procedures and processes, and raw materials with the help of new organizing methods and techniques that have not been used before. Entrepreneurship can be an encouraging factor for innovation (Onetti, Zucchella, Jones, McDougall-Covin, 2010). However, it can be said that although entrepreneurship needs innovation and ideas but goes much beyond a simple idea or innovation. Entrepreneurship is a powerful and an aggressive change agent in society and is one of the very important factors for the advancement and development of society. The study of entrepreneurship involves understanding the knowledge, skills, innovation processes, and creation of new ventures or businesses (Schaper, Volery, Weber, Gibson, 2014). An entrepreneur From this perspective of entrepreneurship, an entrepreneur is a person who is always looking out for new opportunities for business and trade. The factors which distinguish an entrepreneur are innovation, an ability of recognizing an opportunity, establishing processes for growth in business, and employing strategic management techniques in business (Schaper, Volery, Weber, Gibson, 2014). The motivating factor for an inventor or an engineer is generally the challenges presented by a problem but their main purpose is not a commercial opportunity for their idea or invention (Mbhele, 2012). The entrepreneurs, on the other hand, make use of the development in technology to enhance productivity and commercial activities and are therefore the force behind the economic growth and development of the country (Nambisan, Baron, 2012). Innovation Innovation comprises of both the business and the technical aspects of any change in technology or an invention. Innovation is just one of the many elements of the processes and procedures that an entrepreneur applies for the success of his business venture (Onetti, Zucchella, Jones, McDougall-Covin, 2010). Innovation relates to the evaluation of an idea and then bringing it in the market. But assessing the attractiveness of the market, and the dynamics and size of the market are important components of the commercial viability of an idea, therefore, the entrepreneurial understanding is a necessity for commercial success (Wright, n.d.). Key elements of entrepreneurship For an entrepreneurial process to be successful there are 5 key elements or conditions that need to be there. These are: The entrepreneur: an entrepreneur has to be proactive and recognize the right business opportunities to exploit and for that an individual needs to exhibit traits of entrepreneurial alertness and some prior knowledge about the markets, technology and trends, needs, and demands. He also should have good social networks which can help him in developing the business opportunity (Five Key Elements of Entrepreneurship, n.d.). Market opportunities: a market opportunity can be defined as a situation in which a new process can be introduced and new products and services can be sold at a price greater than the production costs. These opportunities can be present as market-pulled or driven by the demand and needs, or as market-pushed which are created by unemployed capacities and resources (Chapter 3: The entrepreneurship process UPSpace, n.d.). The resources: The resources which can help in the entrepreneurial venture to succeed consist of anything that can be useful to further the business opportunity. There are generally classified into six types of resources as per the resource-based theory (Chapter 3: The entrepreneurship process UPSpace, n.d.). The financial resources for the capital investment, the physical resources for manufacturing products, the human resources or the skilled and unskilled labour, the technological resources, the social resources, and the organizational resources (Ismail, Rose, Uli, Abdullah, 2012). The organization: To exploit the entrepreneurial opportunities various types of organizational arrangements are needed. Although entrepreneurship is generally associated with new start-ups, but there are other type of organizational structures also which provide opportunities entrepreneurial innovation. These include organizational structures like corporate ventures, joint ventures, franchises, business acquisitions, and much more. This proves that an entrepreneur and entrepreneurship can exist in diverse environments (Chatterji, Glaeser, Kerr, 2014). The right environment: To achieve entrepreneurial success the entrepreneurs need positive external environments which can be rich in different types of opportunities. The opportunity in an external environment can emerge due to regulatory, demographic, political, and social changes. The two important dimensions of the environment which affect the entrepreneurial activities are the macro level environment which comprises the society as a whole and the micro level environment which comprises of a community (Chapter 3: The entrepreneurship process UPSpace, n.d.). The role of entrepreneurship in economic growth Entrepreneurship has a major role to play in the economic development and raising the standards of living in a country. An entrepreneur may start a business venture for his personal growth and development but at the same time contributes a lot to the community, region, society, and country (Drucker, 2014). Some of the effects that entrepreneurship has on the economic development of the country are: Wealth Creation: In setting up new business ventures entrepreneurs invest their own capital and resources but also attract capital in the form of equity and debt from the lenders, investors, and the public at large. This results in a pooled capital which leads to creation and distribution of wealth from the success of entrepreneurial ventures and is also one of the primary aims of economic growth and development (7 Roles of Entrepreneurship in Economic Development of a Country, n.d.). Creating jobs: Entrepreneurs are job creators instead of job seekers. An entrepreneur instead of seeking a job creates a multiple numbers of job opportunities for others. One of the basic underlying principles of economic development is the job opportunities provided by the new and old businesses in the country (Drucker, 2014). Balanced regional growth and development: Entrepreneurs can help in the regional growth and development in their countries by locating their businesses in the less developed regions of the country. The setting up of industries in underdeveloped regions would lead to an automatic development in the infrastructure, transport, electricity, water, healthcare, and other public services in those regions (7 Roles of Entrepreneurship in Economic Development of a Country, n.d.). It would also create a number of indirect and direct job opportunities which would help in developing the economy of the region. The rise in disposable income would lead to an increase in the consumption levels creating a positive economic output (Kumar, n.d.). Per capita income and GDP: Each new business venture utilizes the labour, land, and capital resources to manufacture products and develop services that add to the national product and income. This raises the GDP and per capita income of the nation as a whole which is one of the important objectives of economic development (Shrivastava, Shrivastava, 2013). Standard of living: One of the key objectives of economic growth and development of the nation is to raise the standard of living of the population of the country (Peck, 2016). The entrepreneurs contribute to the economic growth of the society but also develop and adopt the innovation that leads to an enhancement in the quality of life of their consumers, employees, investors, and other stakeholders. For example, the use of automated machines improves time and cost efficiency and enhances productivity and also ensures that the same goods are available to the consumers at much lower prices (Shrivastava, Shrivastava, 2013). Exports: Another benefit of entrepreneurship is the expansion of the business in the foreign markets and tapping the offshore business opportunities. This not just provides an access to the global markets but also helps in increasing the foreign currency inflows in the country. This also gives the entrepreneurs an access to the latest technologies being used in the much advanced foreign markets. It also works to provide an economic stability to the business in the events of local economic recessions (Kumar, n.d.). Community development: Economic growth does not automatically lead to community development in all the regions of the country. Therefore, to attract entrepreneurial ventures a region will have to develop a pool of skilled and educated workers by providing educational and technical training opportunities (7 Roles of Entrepreneurship in Economic Development of a Country, n.d.). Explain the process of new venture creation The process of creating a new venture is considered to be the pivotal activity of entrepreneurship. The entrepreneurial process consists of all the activities, functions, and actions associated with recognizing opportunities and creating ventures to pursue those opportunities (Peck, 2016). Some Scholars have divided the new venture creation process model into two types: the process model which emphasizes on the entrepreneurial opportunities and the entrepreneurial behaviour model. The opportunities process models: These models focus on the procedures and processes through which new products, services, goods, raw materials, organizing methods, and markets can be introduced with the help of new Means-end, or ends, or means relationships. This model is further bifurcated into three opportunity viewpoints: the discovery process view, the allocative process view, and the Creative process view (Rico, Dubois, Coq, 2011). The behaviour process models: These models focus more on the individual entrepreneurs and study the activities of the entrepreneurs. This model is based on the view that for an entrepreneurship study and research it is very important to understand what are the activities undertaken by the individual entrepreneurs, what is actually created by them when they give a concrete shape to their new venture ideas (Rico, Dubois, Coq, 2011). The common features of Entrepreneurship in Australia and the Asia-pacific region Some of the common features that can be seen in the new start ups in the Asia pacific region and with a special reference to Australian ventures are: Among the indigenous businesses forestry, agriculture, fishery, tourism, recreation and arts, restaurants, and cafes are among the favoured business activities (Rola-Rubzen, 2011). Most of these businesses are managed by either the owner or the co-owners, very few are managed by hired staff (Schaper, Volery, Weber, Gibson, 2014). The business models for these ventures consist of sole proprietorships, trusts, partnerships, cooperatives, incorporated associations, companies, and Non-profit organizations (Rola-Rubzen, 2011). References Chatterji, A., Glaeser, E., Kerr, W. (2014). Clusters of entrepreneurship and innovation.Innovation Policy and the Economy,14(1), 129-166. Chapter 3: The entrepreneurship process - UPSpace. (n.d.). Retrieved August 10, 2017, from https://repository.up.ac.za/bitstream/handle/2263/24173/03chapter3.pdf?sequence=4 Drucker, P. (2014).Innovation and entrepreneurship. Routledge. Five Key Elements of Entrepreneurship. (n.d.). Retrieved August 10, 2017, from https://www.scribd.com/presentation/171642869/BM018-Chap-2-Five-Key-Elements-of-Entrepreneurship Ismail, A. I., Rose, R. C., Uli, J., Abdullah, H. (2012).The Relationship Between Organisational Resources, Capabilities, Systems And Competitive Advantage .Asian academy of management Journal,17(1). Kumar, C. (n.d.). What is the Role of an Entrepreneur in Economic Development ? Retrieved August 10, 2017, from https://www.preservearticles.com/201101143326/role-of-an-entrepreneur-in-economic-development.html Mbhele, T. P. (2012). The study of venture capital finance and investment behaviour in small and medium-sized enterprises.South African Journal of Economic and Management Sciences,15(1), 94-111. Nambisan, S., Baron, R. A. (2012, June 05). Entrepreneurship in Innovation Ecosystems: Entrepreneurs' Self?Regulatory Processes and Their Implications for New Venture Success. Retrieved August 10, 2017, from https://onlinelibrary.wiley.com/doi/10.1111/j.1540-6520.2012.00519.x/abstract Onetti, A., Zucchella, A., Jones, M. V., McDougall-Covin, P. P. (2010, August 10). Internationalization, innovation and entrepreneurship: business models for new technology-based firms. Retrieved August 10, 2017, from https://link.springer.com/article/10.1007/s10997-010-9154-1 Peck, R. M. (2016). Achieving the innovative edge in technology, engineering design, and entrepreneurship.Journal of Innovation and Entrepreneurship A Systems View Across Time and Space. doi: https://doi.org/10.1186/s13731-016-0035-y Rico, T. H., Dubois, P., Coq, M. L. (2011, March). A Process-Based Model of New Venture Creation: Toward ... Retrieved August 10, 2017, from https://hal.archives-ouvertes.fr/hal-00783553/document Rola-Rubzen, M. F. (2011). The Anatomy of the Australian Entrepreneur. Retrieved August 10, 2017, from https://www.iba.gov.au/wp-content/uploads/2012/01/20120110ReportAnatomyoftheAustralianEntrepreneur.pdf Schaper, M. T., Volery, T., Weber, P. C., Gibson, B. (2014).Entrepreneurship and small business. Shrivastava, S., Shrivastava, R. (2013). Role of Entrepreneurship in Economic Development: With Special Focus on Necessity Entrepreneurship and Opportunity Entrepreneurship .International Journal of Management and Social Sciences Research,2(2), 1-5. Wright, M. (n.d.). Academic entrepreneurship, technology transfer and society ... Retrieved August 10, 2017, from https://link.springer.com/article/10.1007/s10961-012-9286-3 7 Roles of Entrepreneurship in Economic Development of a Country. (n.d.). Retrieved August 10, 2017, from https://evoma.com/business-centre/7-roles-of-entrepreneurship-in-economic-development-of-a-country/