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| The definition of an entrepreneur has evolved over time as the world's economic structure has changed and become more complex. Since its beginnings in the Middle Ages, when it was used in relation to specific occupations, the notion of the entrepreneur has been refined and broadened to include concepts that are related to the person rather than the occupation. Risk taking, innovation, and creation of wealth are examples of the criteria that have been developed as the study of new business creations has evolved. In this text, entrepreneurship is defined as the process of creating something new with value by devoting the necessary time and effort; assuming the accompanying financial, psychological, and social risks; and receiving the resultant rewards of monetary and personal satisfaction and independence.
The decision to start an entrepreneurial venture consists of several sequential steps: (1) the decision to leave a present career or lifestyle, (2) the decision that an entrepreneurial venture is desirable, and (3) the decision that both external and internal factors make new venture creation possible. Although the decision-making process is applicable to each of the three types of start-up companies, the emphasis in each one is certainly different. Because of their differing natures, foundation companies and high-potential ventures require a more conscious effort to reach a defensible decision on these points than do lifestyle firms. There are both pushing and pulling influences active in the decision to leave a present career: the "push" of job dissatisfaction or even a layoff, and the "pull" toward entrepreneurship of seeing an unfilled need in the marketplace. The desirability of starting one's own company is strongly influenced by culture, subculture, family, teachers, and peers. Any of these influences can function as a source of encouragement for entrepreneurship, with support ranging from government policies that favor business to strong personal role models of family or friends. Beyond the stage of seeing entrepreneurship as a "good idea," the potential entrepreneur must possess or acquire the necessary education, management skills, and financial resources for launching the venture.The study of entrepreneurship has relevance today, not only because it helps entrepreneurs better fulfill their personal needs but because of the economic contribution of the new ventures. More than increasing national income by creating new jobs, entrepreneurship acts as a positive force in economic growth by serving as the bridge between innovation and the marketplace. Although the government gives great support to basic and applied research, it has not had great success in translating the technological innovations to products or services. Although intrapreneurship offers the promise of a marriage of those research capabilities and business skills that one expects from a large corporation, the results so far in many companies have not been spectacular. This leaves the entrepreneur, who frequently lacks both technical and business skills, to serve as the major link in the process of innovation development, and economic growth and revitalization. The study of entrepreneurship and the education of potential entrepreneurs are essential parts of any attempt to strengthen this link so essential to a country's economic well-being. |