A Short Guide On Leadership Qualities
The concept of entrepreneurship is multi-dimensional. You will find varied, diverse and somewhat contradictory sets of definitions of the term. As a way out the definitional dilemma, this article aims to explain the economic perspective on entrepreneurship.
The economic perspective rests on certain financial variables including innovation, risk bearing, real estate development and resource mobilization.
Innovation/Creativity In the approach, entrepreneurs are people whom execute 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, there exist other forms. Entrepreneurship also involves the initiation of changes in the form of subsequent expansion within the quantity of goods produced, as well as 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's been argued that organizations such as political parties, associations and social groups tend to be created by individuals that 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 - therefore, might be called entrepreneurial teams. Besides, activities inherent in such groups have flourished in the present day, and also are increasingly being described as social entrepreneurship.
Risk Taking This is another financial variable upon which the economic perspective revolves. Risk taking distinguishes entrepreneurs from non-entrepreneurs. Quite often, 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 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 capability to identify persistent shocks or challenges (of long term opportunities) to the environment, and after that 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 referred to financial variables, entrepreneurship can also be viewed based on a set of personal characteristics, motives and incentives of the actor in the entrepreneurship act. This is the psychological perspective, the topic of a future article. As well as the psychological perspective, we shall also examine the process and small business perspectives.
