The Worst Advice We Have Ever Heard About Leadership Qualities
The concept of entrepreneurship is multifaceted. There are varied, diverse and somewhat contradictory sets of definitions of the term. As a way out the definitional dilemma, this article aims to describe the financial perspective on entrepreneurship.
The economic perspective rests on certain financial variables including innovation, risk bearing, and resource mobilization.
Innovation/Creativity In this particular approach, entrepreneurs are folks that perform new combination of productive resources. The key ingredient, the carrying out of new combination (or innovation) distinguishes entrepreneurs from non-entrepreneurs. While new venture creation appears as the most prevalent form of entrepreneurship, similar internet site there exist other kinds. Entrepreneurship also involves the initiation of changes in the form of subsequent expansion within the amount of goods produced, and in existing form or structure of organisational relationships.
Within the entrepreneurship literature, some scholars have questioned the utilization of organization creation as criterion for entrepreneurship. It has been argued that organizations such as political parties, associations and social groups will almost always be created by those who are not "entrepreneurs." Interesting as it might sound, the terms entrepreneurship and entrepreneur are already adopted by varied scholars to meet the innovation and spirit of the time. This is evidenced by attempts to apply entrepreneurial thinking to contemporary team-oriented place of business strategies. Members of such groups - political parties, associations and social groups - as a result, may very well be called entrepreneurial teams. Besides, activities inherent in such groups have flourished in recent years, and also are increasingly being described as social entrepreneurship.
Risk Taking This is another financial variable upon which the financial perspective revolves. Risk taking distinguishes entrepreneurs from non-entrepreneurs. Normally, entrepreneurs are calculated risk takers. They bear the uncertainty in market dynamics. This notion has its critics and advocates. Entrepreneurs may not necessarily risk her own funds but risk other personal capital for example reputation and also the possibility of being more gainfully employed elsewhere.
Resource Mobilization here, entrepreneurship is reflected in alertness to perceived profit opportunities within the economy. This implies the allocation of resources in pursuit of opportunities with the entrepreneur playing the role of the chance identifier. This way, entrepreneurs are distinguished by their ability to identify persistent shocks or challenges (of long term opportunities) to the environment, and then to synthesize the information and take decisive actions based upon it.
This article has conceptualized entrepreneurship based on resource mobilization, risk taking, and innovation. Beyond the previously discussed economic variables, entrepreneurship may also be viewed based on a set of personal characteristics, motives and incentives of the actor within the entrepreneurship act. This really is the psychological perspective, the topic of a future article. Along with the psychological perspective, we shall also examine the process and small business perspectives.
