Question:
Write a Literature review on Concepts, theories, Models of Entrepreneurship. You are also expected to provide a write-up on the history of Entrepreneurship.
Entrepreneurs are referred to as the innovators or the one has the willingness to take risks and build up new ideas for creating new and profitable solutions for the modern-day issues. This innovations and ideas will guide to the conception of a fresh organization and the most obvious form for entrepreneurship would be starting of a new venture. The entrepreneurs virtualize opportunities when other people see chaos and confusion. They are prone to changes and adapt easily when there are any changes taking place in the marketplace (Drucker, 2014). They challenge the unknown factors and create a future continuously. There is a thin line of distinction between the small business owners and the entrepreneurs. The small business owners manage their business with an aim for expecting a stable growth, sale and profits while the entrepreneur’s focuses on producing innovative ideas, profitability and obtain sustainable growth. Entrepreneur is beyond the mere creation of the business, which aims at creating opportunities, take risks and have the ability to convert the ideas into reality. The expression entrepreneur has been derived from a French word entreprendre which means to carry out (Kirzner, 2015). Entrepreneur is one who takes on the responsibility of organizing, managing and taking the risks involved in the business organization. Although it is not possible to draw a single definition on entrepreneur and there is no profile, which can actually represent the entrepreneur of today however a sharp focus has, been made by the researchers on this subject. Entrepreneurship has been regarded as a dynamic method that creates incremental assets. This asset is something, which is formed by the individuals who believe that there is risk involved in justness, time and job commitment for providing a worth to the item for consumption or the service. The entrepreneur needs to inculcate the required skills or resources in order to make an ordinary product or service new and unique.
Entrepreneurs cannot be referred as armchair quarterbacks. They are known as active participants in the start-up games. They like exploring and learning new things, figuring out how to create new things without any kind of instructions. They are brilliant people having exceptional business knowledge. They are the people who undertake challenges. In case of any business there are certain crisis like the predicaments of the management, financial crisis, issues relating to the product, personnel problems and issues relating to public relations (Kuratko, 2016). The one thing, which is certain, is that the business is not going to work according to the plan. It is mandatory to improvise the business plan quickly and knowledgably. One of the crucial characteristic of entrepreneurship would be coachability. Founders are aware that they can’t do everything and they must create their own shortcuts by providing others with answers and a willingness to listen to the experts.
According to the entrepreneurial novice, an entrepreneur or a small business is similar. Some of the factors of distinction are as follows:
Entrepreneurs do not want the things to stay, they look for changes, creating more energy and developing things. Small businessperson is happy and content in what they have and carry on.
Entrepreneurs are innovative and have a technical mind. While the small business owners do things, which others are doing, this would include opening a shop (Storey, 2016).
Entrepreneurs are always looking for big opportunities and they are ready to move on once their business has been set up good enough. Small business owners are usually sentimental and view their business as a community or a part of the family (Lofstrom, Bates & Parker, 2014).
Entrepreneurs will often not do things just out of passion or opportunity other than making profits or making a means of living.
Entrepreneurs would transform the whole world. The small business owners want to make a living and their main aim is serving the local community.
Entrepreneurs are high risk takers
Entrepreneurs are the ones who assume the business risks; they know taking risks is a gamble. They are neither lofty nor stumpy risk takers. They like situations, which are influential, and they like taking up challenges if the chances are in their favor (Bögenhold, Heinonen & Akola, 2014).
Entrepreneurs seek the best risk or the reward action
Entrepreneurs normally do not act if they have assessed all the risks and they are able to make sense out of the complexity. These are some of the traits that make them successful while the others fail. One way of limiting the risk is to choose the best business idea
Entrepreneurs are motivated to get rich
Starting a business cannot be regarded as a rich-quick alternative. It normally take one to three years for a new business to make profits. During the starting, stage most of the entrepreneurs do not buy the things which they need like luxurious cars (Germak & Robinson, 2014). Most of them prefer junk cars and the surplus money that is left is used to pay the debt off and reinvest in the business.
Entrepreneurs defining the economies of the countries around the world
Entrepreneurship has an significant part to play in the economic growth and improvement in the standard of living. By establishing a business entity the entrepreneurs are able to invest in their resources and attract capital from public, lenders and the investors. This leads to the mobilization of the public wealth and benefit the people from entrepreneurs success and the growth of the business. Entrepreneurs are the job creators (Chaston, 2017). Being an entrepreneur would mean that there is one less job seeker and the entrepreneur can create employment opportunities for the other job seekers. The setting up of a new business or industrial unit would help in regional development, which are located in less developed, and the backward areas. The growth in these areas would lead to the development of infrastructure like roads, airports, stable electricity and the water supply.
Entrepreneurs are high-tech wizards
The success of the high-tech entrepreneurs is overplayed by the attention of the media. A very small percentage of the business is being considered as high-tech entrepreneurs because what was considered as high-tech previously cannot be termed same today. Its not high-tech but huge profit margin, which is considered appropriate as per today’s standard (Summers, 2015). One has to look towards the recent problems that have attacked the computer industry for understanding the basic principle used. There are very few business which would require technical abilities. There are people who have started with multimedia business without any technical experience. Thus, there are many businesses who do not even need technical business at all.
Entrepreneur has become very common today because everyone is doing this. This is because barriers to entrepreneurship are low because there is a need huge amount of capital or jump through a number of bureaucratic hoops. However, now a day the term entrepreneur has become quite common (Paunescu, 2014). It gives importance to the workforce of the company that have numerous attributes related with the entrepreneur. An entrepreneur also takes risks with an attempt to solve the given hitch. Entrepreneurs can come from any background and they can expertise in any trade. The increase in the marketing class of the entrepreneur is a good thing. They can push startups towards further success and even in a faster pace than before with the help of growing hack and the marketing strategies.
A psychological approach mainly focuses on the behavioral and the cognitive view that will help in shedding new light on the entrepreneurial alertness. Giving regards to the conceptual entrepreneur alertness for searching the information that is related to the business opportunities and a significant difference has been found between the entrepreneurs and the managers in respect with the entrepreneurial alertness (Baum, Frese & Baron, 2014). There study has highly being criticized for the purely behavioral approach and limited generalizability of the finding, it has also provided with a completely new perspective towards entrepreneurial alertness, mentioning the actions to be performed. As per the cognitive aspect conceptualized entrepreneurial encourages people to think in new and unusual way as this will help the people to identify the innovative and unique business opportunities.
In entrepreneurship, the main central for identifying new opportunities would include comprehension and interpretation. Entrepreneurship has always been a good area for studying the effects of knowledge and identifying the opportunities related to success. Having specific entrepreneurial knowledge is more important rather than having general knowledge. The construction of practical knowledge has been gaining a lot of attention. Practical knowledge has positive effect on the growth of the venture (Baporikar, 2015). It encourages the entrepreneurs to perform actions and improve the working of a business by making innovative products and services. Existence of cognitive bias or overconfidence leads to errors because there is a possibility that people might take irrational decisions. It also has detrimental effects on the entrepreneur because they might make strategic mistakes or even take up too many tasks, which might lead to overextension. Entrepreneurs may have to face many setbacks and obstacle in the entrepreneurial process that might increase the emotional and cognitive resilience. Factors like motivation are important antecedents for entrepreneurial action.
The first thing, which the new entrepreneurs need to know, is that failure is common and success cannot be given. It is important to understand the risk taken and consider the fact that it possible that one might not succeed immediately (Selden & Fletcher, 2015). Being an entrepreneur is not easy because at the end the entrepreneur can blame himself. Excuses are something, which cannot be cut in this field. If the business failed it is likely that the entrepreneur didn’t research properly, or it hired wrong people. There is a lot of research and planning required in order to become a successful entrepreneur. Without preparation, it is possible that the dream business will fail. It is important to have decisiveness, but preparations should be made before making big decisions. It is important to avoid mistakes to avoid pitfalls in future and taking rash decisions. The last thing involves commitment, in order to succeed it is important to give your 100 percent. If one is serious of becoming an entrepreneur he should never stop trying.
Entrepreneurs are the ones who are always looking for big ventures, make moves that would be paid off months later. There would be a positive impact if everything is going well but unhappiness kicks in when nothing goes according the plan. Overdrafts become the best friend of the entrepreneur (Klotz & Neubaum, 2016). In the starting cash flow is tight and one living alone for weeks or even months. But as the time passes there would be a possibility of dipping into overdraft and the bank providers calling and lowering their overdraft fees. It is kind of soul destroying as after putting all the efforts, resources and energy the desired results are not achieved. This is when it is important to surround yourself with mentors, which are experienced.
The entrepreneurial motivation refers to a process that motivates the entrepreneur to put forth superior level of hard work for achieving the entrepreneurial goals. Entrepreneurial stimulus can also be defined as the forces or the drives within an entrepreneur that would affect the route, amount and the perseverance of his intended conduct as an entrepreneur. A motivational entrepreneur will have a willingness to exert effort for a certain period towards a particular goal (Ismail et al., 2016). There two main factors which determine the entrepreneurial motivation are internal and external factors. Internal factors would include desire to do something new, becoming independent, achieving things that one wants from life, one’s occupational and educational background. The external factors would include the assistance of the government, availability of labour and the raw material, encouraging the establishment of the big business houses and promise the demand of the product.
The concept of entrepreneurship stirs the interest the various categories of large goods-producing companies and the standing of high-intuitions among them. Entrepreneurship can be defined as a process by which means a process is discovered, evaluated and the opportunities that can be created in the future goods and services. The opportunities are evaluated to encompass the situation where new products, raw materials, services and the methods of organization are being introduced and sold out at a price higher than that of the production cost. According to the classic view of the entrepreneurship, there is a production of determinants for successful entrepreneurship (Phillips et al, 2015). A line of demarcation has been made between the determinants that are related to human capital, financial and social capital and the other determinants are being made. Research on entrepreneurial has been gaining huge popularity. Some of the entrepreneurial trends would include entrepreneurship education, social entrepreneurship, family business, women and minority entrepreneurs, technopreneurship and the entrepreneurial finance.
Social entrepreneurship is something, which drives towards social innovation and alteration in many fields that includes health, education, surroundings and the growth of the enterprise. Their goal is poverty mitigation along with commercial keenness, various trade methods and encouraging innovation and overcome the traditional practices (Zahra, Newey & Li, 2014). A social entrepreneur can be regarded similar to that of the business entrepreneur, which builds well-built organizations, which is set up as non-profit companies. Social entrepreneurship provides platform, which are unparalleled at the provincial and the international levels that will underline an advance leading models for sustainable social improvement. It helps in the identification of a population of societal entrepreneurs and engages it in structuring up a international, provincial and trade agenda that will develop the world in close association with the stakeholders.
A social entrepreneur can be defined as a person in charge who:
Some of the traits, which the social entrepreneurs share, include:
Social entrepreneurship is all about applying practical, innovative approaches that would benefit the society in general, giving emphasis on the poor and the marginalized. A term that has a unique approach towards the social and the economic problems, an approach that would cut all the sectors and discipline grounded under certain values (Zahra, Newey & Li, 2014). A process that is common for each social entrepreneur, irrespective of the fact that weather its area of focus is education, wealth reform, health, human and worker’s right, environmental and economic development irrespective of the fact that the organization is a profit or a non-profit organization. It is an approach that would separate the social entrepreneur from the rest of the world comprising of well-meaning people and an organization which has dedicated their lives towards social improvement.
Social entrepreneurship will continue its uptick
Project manager at the BMW foundation and the co-founder of Canadian charitable platform, Ryan little suggests that social entrepreneurship has become more like a mainstream entrepreneurship and it has been regarded as a good thing. By the next five to ten years, there is a possibility that there can be a shift in the funding of social enterprises (Alexander, 2015). Social entrepreneurship inherits the phenomenon relating to the popularity and fascination with the people. Social entrepreneurship drives towards social change and the potential payoff, with the lasting and transformational benefit for the society that will set the field and apart the practitioners.
An improved ecosystem will benefit the social entrepreneurship
As we go deeper in the discussion of the social entrepreneurship there would be an improvement in the availability of service that will help the social entrepreneurs to succeed. It is also expected that organizations and the various professionals, which support the social entrepreneurs, will improve the academic methods and the resources (Zahra, Newey & Li, 2014). Social entrepreneurship has been growing towards global and investment interest, so there is a need of talented individuals who would be motivated to solve the social problems and those who are able to turn an idea into profitability and a sustainable long-term business undertaking.
A rise in connectivity can be expected from the social entrepreneurs
Social entrepreneurs have always craved for connections and in the recent times, they have met that tipping point. Networks and the organizations, which support early stage social entrepreneurs, will be increasing in the upcoming years for supporting the growing needs of quality support and fuel up a high-impact social entrepreneurship ecosystem (Frohlich & Oppenheimer, 2015). The capabilities of the connected communities will increase due to the sharing of best practices and support. Benefits which the scrappy social entrepreneurs having big social missions would include robust network of people, resources and the ideas that will increase the scale and the sustainability.
How social entrepreneurship is perceived by the millennial
The entering of the millennial in the labour force and start a new business worldwide and shaping the global economy. Millennials are represented as the largest batch to join the global market in the last 5 decades and it has completely changed the way of conducting a business. Irrespective of the fact that millennial are joining the market at the toughest time in the past 100 years, it has been found that they are still willing to pay extra for sustainable offerings (Prabhu, et al., 2017). Thus, social entrepreneurship can be regarded as a weapon for the next generation for tackling the social challenges and create a change.
References
Alexander, M. M. (2015). A Comparative Look at International Approaches to Social Enterprise: Public Policy, Investment Structure, and Tax Incentives. Wm. & Mary Pol’y Rev., 7, 1.
Baporikar, N. (2015). Societal Influence on the Cognitive Aspects of Entrepreneurship. International Journal of Civic Engagement and Social Change (IJCESC), 2(4), 1-15.
Baum, J. R., Frese, M., & Baron, R. A. (Eds.). (2014). The psychology of entrepreneurship. Psychology Press.
Bögenhold, D., Heinonen, J., & Akola, E. (2014). Entrepreneurship and independent professionals: Social and economic logics. International Advances in Economic Research, 20(3), 295-310.
Chaston, I. (2017). Entrepreneurship. In Technological Entrepreneurship (pp. 1-24). Springer International Publishing.
Choi, N., & Majumdar, S. (2014). Social entrepreneurship as an essentially contested concept: Opening a new avenue for systematic future research. Journal of Business Venturing, 29(3), 363-376.
Drucker, P. (2014). Innovation and entrepreneurship. Routledge.
Frohlich, N., & Oppenheimer, J. A. (2015). Political leadership and collective goods. Princeton University Press.
Germak, A. J., & Robinson, J. A. (2014). Exploring the motivation of nascent social entrepreneurs. Journal of Social Entrepreneurship, 5(1), 5-21.
Ismail, I., Husin, N., Rahim, N. A., Kamal, M. H. M., & Mat, R. C. (2016). Entrepreneurial success among single mothers: the role of motivation and passion. Procedia Economics and Finance, 37, 121-128.
Kirzner, I. M. (2015). Competition and entrepreneurship. University of Chicago press.
Klotz, A. C., & Neubaum, D. O. (2016). Research on the dark side of personality traits in entrepreneurship: observations from an organizational behavior perspective. Entrepreneurship Theory and Practice, 40(1), 7-17.
Kuratko, D. F. (2016). Entrepreneurship: Theory, process, and practice. Cengage Learning.
Lofstrom, M., Bates, T., & Parker, S. C. (2014). Why are some people more likely to become small-businesses owners than others: Entrepreneurship entry and industry-specific barriers. Journal of Business Venturing, 29(2), 232-251.
Paunescu, C. (2014). Current trends in social innovation research: social capital, corporate social responsibility, impact measurement. Management & Marketing, 9(2), 105.
Phillips, W., Lee, H., Ghobadian, A., O’Regan, N., & James, P. (2015). Social innovation and social entrepreneurship: A systematic review. Group & Organization Management, 40(3), 428-461.
Prabhu, V. P., McGuire, S. J., Kwong, K. K., Zhang, Y., & Ilyinsky, A. (2017). Social Entrepreneurship among Millennials: A Three-Country Comparative Study. Australian Academy of Accounting and Finance Review, 2(4), 323-353.
Rahim, H. L., & Mohtar, S. (2015). Social entrepreneurship: A different perspective. International Academic Research Journal of Business and Technology, 1(1), 9-15.
Selden, P. D., & Fletcher, D. E. (2015). The entrepreneurial journey as an emergent hierarchical system of artifact-creating processes. Journal of Business Venturing, 30(4), 603-615.
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Summers, T. C. (2015). How Hackers Think: A Mixed Method Study of Mental Models and Cognitive Patterns of High-tech Wizards (Doctoral dissertation, Case Western Reserve University).
Zahra, S. A., Newey, L. R., & Li, Y. (2014). On the frontiers: The implications of social entrepreneurship for international entrepreneurship. Entrepreneurship Theory and Practice, 38(1), 137-158.
Zahra, S. A., Newey, L. R., & Li, Y. (2014). On the frontiers: The implications of social entrepreneurship for international entrepreneurship. Entrepreneurship Theory and Practice, 38(1), 137-158.
Zahra, S. A., Newey, L. R., & Li, Y. (2014). On the frontiers: The implications of social entrepreneurship for international entrepreneurship. Entrepreneurship Theory and Practice, 38(1), 137-158.
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