Entrepreneurship and Innovation
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The Origin of Entrepreneurship
Entrepreneurship-And-Innovation,The terminology of “entrepreneurship” is very broad and has formed the basis of formulation for many organisations in the world. The word itself is derived from 13th century where the literal meaning of entrepreneurship means “to get something done”, “to start off with something” or “to tackle something”. If all these definitions are put into context of the modern-day usage of this terminology, it is quite evident that an entrepreneur has to initiate the project and overcome several difficulties in order to accomplish the set goal (Blackburn, 2011).
However, over time the meaning of “entrepreneurship” was molded and by the end of 16th century the terminology was specifically used for a person who would start a business venture. According to this newly formulated definition, anyone who would associate themselves with working on establishment of a business and the willingness to take risks for it would be classified as an entrepreneur (Blackburn, 2011).
Its Dynamic Conception over the Years
The definition became clearer as the time passed; at first the terminology was being generally used for accomplishing any task, but the meaning gained direction in the timeframe of 16th century. The terminology gained further importance when it was first used as an academic term in 1730 by a famous economist Richard Cantillon (Blackburn, 2011). According to Richard Cantillon any person willing to take financial risk by making an investment, in order to establish a business venture to gain profit from it, will be considered an Entrepreneur (Blank & Dorf, 2012).
The concept gained further popularity as more and more economists and researchers started developing interest in it. After Richard Cantillon came other two economists Jean Baptiste Say and John Stuart Mill who took over the concept in 1800 as an academic terminology and elaborated that a person is considered an entrepreneur if he takes less resources into a business as an investment and is able to grow those resources to the point where he achieves financial stability can be called as an Entrepreneur (Blackburn, 2011).
The concept of “entrepreneurship” was also highlighted in one of the most famous book “Principles of Political Economy” which was written by Mill in 1848. Most people were confusing the concept of Entrepreneurship with business owners, however this book written by Mill highlighted the boundaries between the two terminologies (Blackburn, 2011).
According to this book, a person will be considered as an entrepreneur if he engages in everyday tasks of the business instead of just owning the business. As time passed, the terminology gained more reputation and clarity where most people started specifying the concept in their own way whilst succeeding and had apprentices following them in order to become an entrepreneur, to the point where this concept is now being used worldwide and is in the wish list of every business owner (Blackburn, 2011).
Types of Entrepreneurship
The phenomena of Entrepreneurship, being abstract and broad in nature, has many different types of which a few are discussed below.
Small Business Entrepreneurship
This is the type of entrepreneurship which is not that complex in nature. In this type, the business venture does not necessarily wants to make a drastic expansion or profitability in the current moment. These types of businesses have few owners and almost no investors.
The work methodology of these businesses is mostly overtaken by inexperienced workers or the family members (Zaratiegui & Rabade, 2005). The business has relatively low efficiency as the staff has little to no experience and is usually a small start-up with minimum investment (Zimmerer & Scarborough, 2008). Example of these businesses can be; local grocery markets, hair salons, plumbers, pharmacy among others.
Large Company Business Entrepreneurship
This type of business is the complete opposite of small business entrepreneurship and is extremely complex and abstract in nature. These are the businesses which are run by many owners and investors who have shares in it. Such businesses strive to achieve maximum profitability and want their expansion process to be conducted as soon as possible (Somerville & McElwee, 2011).
Complex functions are involved in the working methodology of these businesses which may involve advanced analysis on the requirement of targeted customers and usage of advanced strategies to make the best product for them with minimum cost structures (Torri, 2010). Example can be considered of major well known brands such as Google, Apple, Samsung and so on.
Scalable Startup Entrepreneurship
The organization or the business owner take a different approach to the business market where extensive procedures are conducted in order to evaluate, find and develop new markets to establish businesses that would impose a massive impact on how organizations used to conduct businesses. The mission statement of these businesses depicts finding a new market and ensuring a productive change (Swanson & Zhang,2014).
The funding for such functions is usually provided by a venture capitalist. Considering the job descriptions to be complex and specific, this type of businesses also require employees with advanced knowledge or specific skill set. The example of these businesses can be taken of Facebook, Twitter or simply Uber.
Social Entrepreneurship
Social Entrepreneurship is a different kind of entrepreneurship which involves well being of the world and environment regardless of the profit generated from it (Swanson & Zhang, 2011). These businesses work for the benefit of society rather than their own personal motives.
Such businesses conduct nonprofit social work by making the world a better place without any racial, social or cultural bias (Swanson & Zhang, 2010). The example may involve businesses that work for people with a disability such as “Leonard Cheshire Disability” or medical services being offered completely free such as “British Heart Foundation” (Swanson & Zhang, 2012).
Innovative Entrepreneurship
This is the type of entrepreneurship in which the organisation constantly seeks different ideas and strategies to make their products better and different from those being pitched by the competitors so as to ensure maximum profitability and recognition (Matthews & Brueggemann, 2015).
The example may include high-end business owners such as Jack Ma or Bill Gates who have been innovative in their work methodology and their companies stand out from the rest of the market competitors. This type not only ensures maximum profitability but also lays a foundation for recognition of the organization and its development structure (Matthews & Brueggemann, 2015).
Factors that Motivate Entrepreneurs
In order to make the business successful and achieve maximum profitability, the entrepreneur has to make sure that he is highly motivated. Entrepreneurship is not only about making money, but it also involves the development of a proper character. A person with a weak character is more likely to quit when the stakes are high or when he encounters problems which every entrepreneur has to go through.
Motivation ensures that the entrepreneur stays on track and there is consistency in their work methodology. Following are the few factors which allow an entrepreneur to keep themselves motivated throughout the development phase of the business structure (Weidinger et al., 2014).
Passion
One of the most important and fundamental principles of sustaining motivation for an entrepreneur is his passion which consolidates the drive that he has for accomplishing the task in hand. Passion ensures that the person takes right steps for the respective tasks, without passion the business or the working function would be considered lifeless.
In most scenarios, almost all of the entrepreneurs have to go through an exceptionally tough phase which requires a lot of evaluations and strategies to overcome it (Matzler et al., 2015). Passion ensures that the person takes the risk required in order to accomplish the task in hand and make the right decision for the right situation…………………………………………………continued
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