How Does the World Define Entrepreneurship?
The concept of entrepreneurship has been around since the creation of great civilizations. The term “entrepreneurship” comes from the French term “entreprendre” which means to “to undertake” something. This French term “entreprendre” was defined by economists 200 years ago to describe the process of the industrial revolution. “These early economists noted that production processes required labor (mental and physical human effort), physical capital (plant and equipment), human capital (knowledge and expertise), and land (natural resources).” Source: Page 2, Social Entrepreneurship: A Modern Approach to Social Value Creation by Arthur C. Brooks (Pearson Prentice Hall 2006). But, these early economists failed to realize that more was needed for the industrial revolution to take off like managerial skills and the business owner ability to take risks to increase productivity and grow the business.
Many earlier scholars stated that there was more to entrepreneurship than just manpower, creation of products, and productivity. The concept of entrepreneurship should also include management talent, risk opportunities, recognition of different opportunities, being innovative, and wanting great results. The great “godfather” of entrepreneurship, the economist John Schumpeter, defined the ultimate phenomenon of entrepreneurship as follows in 1934:
“First of all there is the dream and the will to [find] a private kingdom, usually, though not necessarily, also a dynasty… Then there is the will to conquer: the impulse to fight, to prove oneself superior to others, to succeed for the sake, not of the fruits of success, but of success itself. From this aspect, economic action becomes akin to sport…The financial result is a secondary consideration, or, at all events, mainly valued as an index of success and as a symptom of victory, the displaying of which very often is more important as a motive of large expenditure than the wish for the consumers’ goods themselves….Finally, there is the joy of creating, of getting things done, or simply of exercising one’s energy and ingenuity….Our type seeks out difficulties, changes in order to change, delights in venture.” Source: Page 3, Social Entrepreneurship: A Modern Approach to Social Value Creation by Arthur C. Brooks (Pearson Prentice Hall 2006).
In summary entrepreneurship has been defined in many ways like financial freedom, personal value, and economic stability of small communities. A good definition for entrepreneurship can be “independence from big corporations”. Entrepreneurship can also be defined as the freedom to create one’s own economic opportunities. Also, can be defined as having the ability to help grow and improve the economy of local communities.
Here are some of the terminology that defines “entrepreneurship” throughout the world:
- Acquisition and merger: The idea of taking over or buying another business that is not your own.
- Advertising: The activity of letting the public know about your business, and the products and services one’s business has to offer to current customers and future customers.
- Corporation: A type of business that is a separate legal entity from the owner and involves Board of Directors including stocks and bonds.
- Entrepreneur: A person who starts their own business or assist others in a business venture. Someone who is not afraid to take major risks and wants to add value to the world.
- Home Based Business: This type of business occurs when individuals run their business from home no matter the size of the business.
- Joint Venture: Where two companies agree to go into business together, but remain separate legal entities.
- Marketing: The concept of conducting research on how to grow and promote a business. It is the act of promoting a business to the general public.
- Networking: This concept is meeting other business owners and forming business relationships with those individuals.
- Outsourcing: This when a business owner hires another business to complete certain tasks for them like accounting services and secretarial services.
- Business Plan: The roadmap that a business owner will create to discuss how they will run and operate the business.
There are many other terms used to define the “entrepreneurship” process, but these are some of the major ones used to define it. Entrepreneurship gives an individual the opportunity to fulfill their dreams of being their own boss and having financial freedom. The process of entrepreneurship has helped to lift many communities around the world out of poverty.
Donya Zimmerman is a business consultant, mediator, and legal professional with over ten years of experience. Donya is also a public speaker and aspiring author. She has a few books in the works that will be published and released in the latter part of 2015. The books will focus on entrepreneurship, small business, and daily devotionals. She is owner of Family & Community Mediation and Business Consulting (FACMBC) based in Baltimore, Maryland and has been in business since 2013. Services provided by FACMBC: Mediation and Conflict Resolution Services; Business Registration Assistance (Limited Liability Company, Corporation, S-Corp, Limited Liability Partnership, etc.); Business Plan Drafting Assistance; Business Certification Assistance (MBE, WOSB, 8A, 501(c) (3), Hub Zone, etc.); and Business Organization Assistance. She is also a contributing writer to the Maryland Daily Examiner Newspaper. Donya Zimmerman has made article contributions to the Simply Inspirational Women in Business Journal for 2014 published by Dr. Cheryl Cottle.
If you are thinking about starting your own small business or non-profit organization do not hesitate to contact me because I can show you how to do so. Contact information: email@example.com; www.facebook.com/FACMBC; www.twitter.com/FACMBC; https://dzimmerman36.wordpress.com; http://www.linkedin.com/in/dzbusconsultantandmediator