Entrepreneurial PlanningChapter 14). EntrepreneurshipThe term which was coined back in 1700s has evolved tremendously in terms of its definition over the years. Although many people equate it to starting up a new business economists contend that it goes beyond that and basically entails taking the risk to venture into a something that will make profits. A contemporary definition of entrepreneurship is that it is a process of taking an initiative, organizing economic and social resources and turning these resources into a profit making venture (Casson 331). Entrepreneurships have outstanding characteristics that make them quite distinct from other firms.
A large number of entrepreneurships are started by individuals although some are team ventures as opposed to other organizations that are formed by the governments or are subsidiaries of multinational corporations. Entrepreneurships also have high rate of growth relative to other organization due t the fact that the entrepreneur is in constant research to upgrade his business. In addition entrepreneurships generate jobs for themselves and the people they employ and create intense competition in the business world thus enhancing productivity of a country.
An entrepreneur differs from someone working under employment in a number of ways. Daily (405) maintains that entrepreneur is his own boss and they are solely responsible for decision required in the business. Besides that, they have potential of achieving significant financial growth compared to employed individuals. Being an entrepreneur is also associated with development of equity and equity as the individual is in charge of the whole business. Casson (339) contends that one is directly involved in the business affairs and thus can make positive contribution towards its growth. 13).
Are entrepreneurs made or born? Studies about the nature of entrepreneurs have been polarized with endless debates. Some researchers argue that children born by entrepreneurial parents are more likely to make good entrepreneurs compared to others. This viewpoint underscores the argument that entrepreneurs are born and not made. Other researchers in the other hand oppose this stating that it is the family environment that influences such behavior and not the fact that they were born by entrepreneurial parents (Laser 2). Probably they helped in the family business when they were young or shared in the family business success in one way or another.
Even though it is arguably correct that hereditary factors have a significant share in creating entrepreneurs, the inherent fact is that an entrepreneur whether made or born, must possess specific entrepreneurial traits Laser (3) maintains that one of the basic characteristic of an entrepreneur is nonconformity. This means an individual’s ability to defy mainstream rules so as to facilitate original innovation. Another feature of an entrepreneur is self-efficacy; the individual should have an inner belief that he will be able to attain his goals.
Entrepreneurs also possess considerably high achievement motivation than other people. They are more achievement-minded and less affiliation or power-minded. Flora (2) states unlike gamblers, entrepreneurs set goals they are able to reach with their abilities and experiences, that is, they are ‘realistic high goal setters’. Additionally, they have a preference for innovation; to do familiar things in new way or come up with completely new ideas. Entrepreneurs to not oppose uncertainty for the future but they are ready to set measures to avoid the eventualities.