Entrepreneurship
Entrepreneurship
Entrepreneurship (/ˌɒntrəprəˈnɜːrʃɪp, -ˈnjʊər-/), from the French word 'entreprendre' meaning 'to undertake', is the process of designing, launching and running a new business, which is often initially a small business. The people who create these businesses are called entrepreneurs[1].
Definition
Entrepreneurship has been described as the "capacity and willingness to develop, organize and manage a business venture along with any of its risks to make a profit."[2] While definitions of entrepreneurship typically focus on the launching and running of businesses, due to the high risks involved in launching a start-up, a significant proportion of start-up businesses have to close due to "lack of funding, bad business decisions, an economic crisis, lack of market demand, or a combination of all of these."[3]
History
In the 2000s, the definition of "entrepreneurship" has been expanded to explain how and why some individuals (or teams) identify opportunities, evaluate them as viable, and then decide to exploit them, whereas others do not,[4] and, in turn, how entrepreneurs use these opportunities to develop new products or services, launch new firms or even new industries and create wealth.[5]
Types of entrepreneurship
There are several types of entrepreneurship that can be identified, including:
- Small business entrepreneurship: These are businesses that are commonly found in every town or city, such as grocery stores, restaurants, and salons. They are usually family-owned and have a limited scale of operations. They are not innovative and do not have high growth potential.[6]
- Scalable startup entrepreneurship: These are startups that start with a unique business idea. They aim to reach a global market and have high growth potential.[7]
- Social entrepreneurship: These are businesses that are driven by a social cause. They aim to make the world a better place.[8]
- Large company entrepreneurship: These are businesses that are well-established, but they aim to diversify their operations or enter new markets to ensure continuous growth.[9]
See also
References
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