The Low Down On Entrepreneur Skills Exposed

The concept of entrepreneurship is multifaceted. You can find varied, diverse and somewhat contradictory sets of definitions of the term. As a way out the definitional dilemma, this article aims to describe the economic perspective on entrepreneurship.

The economic perspective rests on certain economic variables including innovation, risk bearing, and resource mobilization.

Innovation/Creativity Within this approach, entrepreneurs are people whom 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, there exist other kinds. Entrepreneurship also involves the initiation of changes within the form of subsequent expansion in 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 has been argued that organizations such as political parties, associations and company management social groups often be created by individuals that are not "entrepreneurs." Interesting as it might sound, the terms entrepreneurship and entrepreneur have been adopted by varied scholars to meet the innovation and spirit of the time. This really 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 - because of this, could be called entrepreneurial teams. Besides, activities inherent in such groups have flourished at the moment, 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 might not necessarily risk her own funds but risk other personal capital such as reputation and the possibility of being more gainfully employed elsewhere.

Resource Mobilization here, entrepreneurship is reflected in alertness to perceived profit opportunities in the economy. This implies the allocation of resources in pursuit of opportunities with the entrepreneur playing the role of a chance identifier. This way, entrepreneurs are distinguished by their capability 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 determined by resource mobilization, risk taking, and innovation. Beyond the previously mentioned financial variables, entrepreneurship also can 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 subject of a future article. Along with the psychological perspective, we shall also examine the process and small business perspectives.