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Entrepreneurship Research Paper Sample

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The Entrepreneur

The word ‘Entrepreneur’ has been around for a very long time. A French economist during the eighteenth century, J. This word was defined by B. Say as moving economic capital out of a lower region and into an area of higher efficiency and higher yield. From Cunningham, J.B. J.Lischeron (1991) and J.Lischeron (1991) define that the word entrepreneur was known in America as the one who began his own, fresh and small company some thirty years earlier, which even today still goes with many people. It is the production of novelty, fulfilment or a shift in customer demand that reflects on the word entrepreneur.

Researchers, Hofer and Bygrave (2003-4, Pg 6-7) suggests that entrepreneurs are the gap-fillers who given the supply and demand nature of market forces through their skills, perceive and take steps to correct market deficiencies. They not only offer innovative products and services and enable businesses to change the sector, but also generate more and more new employment. Supermarkets have produced the role of trolley collector; digital service desks are a by-product of computer technologies; medical advances have resulted in expanded layers of different job classifications and definitions. Jobs have increased not just in numbers but also in complexity. There was no apparent demand for these facilities one hundred years earlier, nor was there any reason for pursuing such a need.

Entrepreneurship Research Paper Sample

Entrepreneurship

Kirby (2003, Pg 786) investigated in his book that by the beginning of 1980s, entrepreneurship was at finest, a likely hopeful ground of academic inquisition. Though, by the finale of that decade, owing chiefly to remarkable progress in its corpse of experimental information, entrepreneurship might assert to be a rightful ground of educational inquisition in every compliment apart from one: it requires a considerable hypothetical basis. A main confront in front of entrepreneurship examiners in the 1990s is to build up theories and models build on firm basics from the social sciences (Welsch, 2003, Pg 4-5).

Wickham (2004) observe that subsequent to all, models and theories expect the result of operations. And it is not possible to operationalize an idea that cannot be defined, as an Entrepreneur a person who perceives a chance and makes an association to pursue it.

Entrepreneurship vs. Small Business

A lot of people make use of the terms “entrepreneur” and “small business possessor” simultaneously. At the same time as they might have a great deal in general, there are noteworthy dissimilarities between the entrepreneurial project and the small business. Jones-Evans Dylan and Carter Sara (2000, Pg 374-375) recommend that Entrepreneurial ventures vary from small businesses in the following ways:

  1. Quantity of wealth creation – rather than simply generating an income stream that replaces traditional employment, a successful entrepreneurial venture creates substantial wealth, characteristically in surplus of quite a few million dollars of turnover.
  2. The pace of wealth construction – while a flourishing small business can produce numerous million dollars of revenue over a life span, entrepreneurial prosperity formation repeatedly is quick; for instance, within 5 years.
  3. Risk – the danger of an entrepreneurial venture must be elevated; or else, with the inducement of certain profits several entrepreneurs would be following the thought and the opening no longer would survive.
  4. Innovation – entrepreneurship repeatedly occupies considerable innovation further than what a small business may display. This innovation offers the venture the spirited benefit that fallout in capital creation. The innovation might be in the creation or service itself, or in the business procedures used to convey it.

The Entrepreneurial Process

Allow us start with the entrepreneurial procedure because this is at the core of the topic. Some of the vital characteristics of the entrepreneurial procedure are as follows

  • Commenced by an act of human will.
  • Takes place at the stage of the individual firm.
  • Entails a change of state.
  • Entails a discontinuity.
  • A holistic procedure.
  • An energetic process.
  • It is distinctive.
  • Entails several antecedent variables.
  • Results are tremendously receptive to the early conditions of these variables.

Taken collectively, these characteristics generate a set of limits and criteria that will have to be met by any “ideal” replica of entrepreneurship. It is; therefore, suitable to scrutinize each of them more cautiously and completely.

Entrepreneurship is known to include ambition, drive, inspiration, and perseverance as elements in its simplest type. The entrepreneur must be prepared to assume individual responsibilities for establishing targets, addressing challenges, and reaching goals through their activities. Where in the twenty-first century can these enigmatic attributes be found? The following entrepreneurs also shown that they have these qualities in abundance, including certain losses. They are often symbolic of the businesspeople who have made a difference to the socioeconomic and working climate. Researcher Hofer (2003-4, Pg 15-16) provides examples of former famous innovators and pioneers such as refined calculated medication dispensing by Dr. Wallace C. Abbott (Abbott Laboratories); Elias Howe and Isaac Singer – the sewing machine; Rowl and Hussey Macy – N.Y. Retailers; George Eastman – Eastman Kodak (1888) – in his earlier years, cameras and photography, office copiers and industrial photography, etc.; Joseph Engelberger – the founder of robotics, to this day has transformed the face of heavy and risky industrial and military operations. Microsoft – Paul Allen and Bill Gates (1975) – has perhaps had the biggest influence. At the foundation of each of the new corporate giants are creative entrepreneurial organisations.

Public Sector Entrepreneurship – A Critical Review

Scott Shane and Venkataraman S. (2002) access this segment as a review on public sector entrepreneurship, including studies from three diverse research streams: political science, public administration and business studies. The author Welsch (2003, Pg 65-66) suppose that approaches from these fields are precious as they drop light on the same experience from unlike point of views. Throughout the 1980s (WBCSD, 1997, Pg 1) the political science literature invents the terms ‘political’ and ‘policy’ Entrepreneur, which are used exchangeably. According to Whittingham (1992, Pg 761) pronounce Entrepreneurs are illustrated as ‘advocates who are enthusiastic to spend their resources – time, force, status, wealth – to uphold a place in return for predictable future achievements in the shape of material, purposive, or solidary reimbursements’. Policy entrepreneurs are continuously shopping more or less for windows of prospects during which they thrust their favorite ideas. Material or other sort of remuneration such as social gratitude determines them. It is recognized that policy achievement and position as driving inspiration and they concentrate on the requirement to recompense more unambiguous notice to the issue. They establish that entrepreneurs are concerned by relaxed public-sector resources and by the likelihood of reassigning local budget to attain their policy objectives. Sandberg illustrates, (2004-5, Pg 14) in common, most of the study on political entrepreneurs has function the notion to biographical case studies; emphasizing on the life of entrepreneurial influential, or to the expansion and execution of fresh strategies. Birley (1985, Pg 114) suggests, the focus of the study has transferred from politicians, to officials at the management stage of the public sector who perform as entrepreneurs. The researchers are paying attention on entrepreneurship representations as resources of attaining more competent and victorious organisations in non-turnover and public surroundings.

According to Peter Drucker (1997, Pg 96-97) the appearance of the entrepreneurship occurrence in the public division has lifted a motivating argument in the public administration over the self-governing accountability of Public executives and politicians. The dissimilarities between the private and the public divisions do not permit the acceptance of the entrepreneurship replica for public organisations. Entrepreneurship comprises anti-democratic distinctiveness’s such as grave dependence on authority and compulsion, a fondness for innovative change, and disregard for customs.

Wickham (2004) states that Entrepreneurship in community organisations is a trend that has been examined insufficient to date. The study is chiefly theoretical (supported on perception or learned estimation) and not extremely methodical. The major techniques used to supply proof are improvised biographies or case learning’s. Furthermore, Scott Shane (2002) put forward that the mainstream of the political science learning’s has pay attention on the American public sector, as a result enduring US prejudiced. This paper indicates the validity of the notion of entrepreneurship in the background of European local government. Local government in Europe is characterised by a fast-altering atmosphere. Equal to twenty years ago, they focused mostly on governmental subsidy and local taxes. Nonetheless, the circumstances have altered (and is altering) universally in Europe.

Entrepreneurship and Societal Change

It shows that the last two decades have seen most important communal alterations in all of these dimensions. Modifications in the financial and labor markets have augmented mobility considerably. Conceivably more imperative, development in logistics, cross-border flow of labor, capital, and ideas, deteriorating of rational property safety, and the increase in global contact have helped people, money, products, and ideas scatter all through the world, flowing to the areas of supreme chance (Kirby, 2003, Pg 796-797).

Entrepreneurial Marketing

Wickam Philip (1997, Pg 247) researches that an assessment of the marketing-entrepreneurship edge suggests two main subject parts for study. The primary of these can be named the role of marketing in entrepreneurship. This feature of the edge is related with the function of marketing tools, conception, and theory in sustaining new business enterprise formation and small business increase. This region has received substantial consideration over the previous decade.

The second dimension of the border can be termed the role of entrepreneurship in marketing, and is our center of attention here. It symbolizes an examination of conducts in which entrepreneurial approaches and behaviors can be useful to the progress of marketing plans.

The expression “entrepreneurial marketing” is anticipated as an amalgamative concept for conceptualizing marketing in a period of information concentration and enduring change in the environmental perspective within which companies function. (Gibb, 1999, Pg 15) It can be defined as the proactive recognition and abuse of chances for magnetizing and retaining customers through inventive approaches to risk management, resource leveraging and value creation. Entrepreneurial marketing (EM) symbolizes an opportunistic viewpoint wherein the dealer is not merely accountable for communication actions, but with constantly discovering new resources of value for clientele and new markets for the firm. Value is produced through approaches to the basics of the marketing mix that confront current industry suppositions (Journal Of Small Business Management, 2004, Pg 14-15). Significantly, EM represents an unusual approach to envisaging the business itself, its association with the marketplace, and the position of the marketing function inside the firm.

Entrepreneurial Growth: Predictors and Indicators

According to Carter Sara (2000, Pg 373-375), in order to explore the subject of entrepreneurial growth, growth predictors, and growth indicators, a search of the recent growth literature was undertaken.

Entrepreneurial Growth: Predictors

While development can take several types, including organic growth and acquired growth, company growth is usually followed by an increase in revenue, an increase in the number of staff, and an increase in overall assets. Development is made up of changes in both of these measures, so what defines growth? To recognise a company’s growth method, quantification and recognition of these growth predictors is important. Growth predictors help to clarify the cause of fast growth and offer insight into what pushes an organisation to successfully develop its market (Journal Of Small Business Management, 2004, Pg 9-10).

In the areas of entrepreneurial development, there are many research sources predictors, such as:

  • Environments
  • Managerial practices
  • Planning and control
  • Network resources and alliances
  • Accessibility of capital (financial, human, social, etc.)
  • Interactions
  • Demographics
  • Firm age
  • Personal attributes

Entrepreneurial Growth: Indicators

According Welsch (2003, Pg 268-269), several of the empirical research studies used multiple indicators in their studies so the percentages sum to more than 100. The main two growth factors cited are: workforce numbers/job formation and growth in sales and revenue. These two metrics are the most common indicators of growth by far. In fact, the top-five indicators found that most commonly used growth indicators include Turnover/sales (30.9 percent), Employment (29.1 percent), Multiple indicators (18.2 percent), Performance (12.7 percent), Market share (5.5 percent), and Assets (1.8 percent).

The two widely used metrics are revenue and jobs. Reliable and prescribed quantitative metrics such as revenue or wages are not arbitrary measures such as satisfaction or assumed market position. As a metric, growth in assets is not advised since it is not significant in the service business, where visible assets are also very limited. In order to better adjust for the variations in firm scale, both relative and absolute steps have been proposed (WBCSD, 1997, Pg 1).

Entrepreneurial Failures: Key Challenges and Future Directions

Wickam Philip (1997, 227-228) propose that new firms create new jobs, open up chances for upward social mobility, foster economic flexibility, and contribute to competition and economic efficiency. However, new firms fail at an alarming rate, and that failure is a norm, rather than the exception. Much of the research on entrepreneurship has concentrated on active projects, and little is understood on why ventures struggle. On how they struggle, still less is learned.

In general, Wickham (2004) examines that many different terminologies are related to business failure, such as firm closures, entrepreneurial exit, dissolution, discontinuance, insolvency, organizational mortality, bankruptcy, and organizational failures. With no difference, these terminologies have been used interchangeably.

Failure Factors

Individual Characteristics – The Entrepreneurs

Most researchers in the field like Scott Shane and Venkataraman S. (2002) they also discovered that the creator is the secret to the success and failure of projects. The studies explored the results of the schooling of the creator, working knowledge, experience unique to the business, and relatives. This stream of analysis focuses mainly on the philosophy of human resources which in general, claims that the founder’s strong human capital endowment eliminates the opportunities for entrepreneurial failure.

Firm Size and Liability of Smallness

Researchers also concluded that the initial scale, which can be determined by the sum of financial resources spent and the number of people working at the time of the establishment, often impacts entrepreneurship failure. In a similar vein, it was found that a high survival rate for firms with $50,000 or more of start-up capital and employees. A study of the winery industry and a study of medical products found similar results. However, no support for the belief that size has an impact on failure rate (Cunningham, J.B. and J.Lischeron, 1991)

Firm Growth

Rates decreased by half for firms that grew. Even a modest amount of development has decreased the average rate of loss within five years to 34 percent; and that the earlier in the life of the business that growth occurred, the lower the chance of failure.

M-Commerce: A Chance to Enhance the Entrepreneurial Endeavor

Forecasts according to Whittingham, R. (1992, Pg 698) estimates that, by 2010, mobile services will be generating about half of operators’ average revenue per user. The operators’ task as entrance providers and satisfied aggregators – frequently throughout alliances with contented and service providers – will permit them to present customers a fresh, more personalized and complete variety of information and services, while allowing them to discriminate themselves from the opposition.

An expansion to electronic commerce is not mobile commerce. It reflects a distinct theory of business which involves multiple business models. It would allow businesses with new dimensions, such as time and speed, consumer position, and their needs and desires, more challenging in the market climate. A large amount of market opportunities would spring up in an m-commerce setting, and it is up to a young generation of entrepreneurs to take advantage of these opportunities and truly leverage them.

E-Commerce Entrepreneurship: Emerging Practices, Key Challenges, and Future Directions

In particular e-commerce technology has prompted many entrepreneurs to examine how their businesses capture, synthesise, use and disseminate knowledge through consumers, personnel, and supply networks, the International Journal of Entrepreneurship and Creativity (2005, pg 1) states. Many that are able to innovate with innovative product and service offerings would be placed to perform more successfully. In contemporary science, the degree to which entrepreneurs capitalise on the circumstances posed by e-commerce and participate in creativity and innovation is of significant interest.

The twentieth century has been described as the “century of the entrepreneur”. The entrepreneurial landscape continues to be transformed; a modern form of entrepreneurship is taking shape as the 21st century progresses. Electronic commerce is transforming the essence of industry with the exponential acceleration and availability of technologies (Welsch, 2003, Pg 168-169).

Entrepreneurship and Community Development

As supported by study reports throughout the United States and around the world, entrepreneurship practises lead to community and social growth. The area of sociology, psychology, and economics, where much of the studies began during the 1960s and 1970s, has grown beyond study connecting entrepreneurship and economic growth. The Global Entrepreneurship Monitor reports continue to calculate worldwide economic impacts from the development of new projects annually. Social science analysts and urban development experts see entrepreneurship projects as crucial ingredients in socially deprived communities to change conditions. Others, it is emphasized the need to consider entrepreneurship’s impact on social as well as economic wealth creation (Sandberg, 2004-5, Pg 5-6).

Women Entrepreneurs In The New Millennium: Recent Progress And Future Directions For Research, Entrepreneurship Development, And Teaching

Welsch (2003, Pg 267-268)  argued that women have entered the world of entrepreneurship in significantly growing proportions during the last two decades. They have added to the world economy and to their local societies through the creation and development of their corporations. There are varied routes women have taken to assume leadership positions in industry; but most often than not, most women business owners have faced or worked to escape barriers and difficulties in building their companies. The involvement of women driving small and entrepreneurial companies in the workplace has had a profound effect on jobs and worldwide market environments.

Research has shown that woman leaders who operate high-growth-oriented firms have a deeper dedication to their company’s performance, a greater desire to sacrifice on behalf of their company, earlier growth preparation, and sufficient capitalization, and a team-based style of organisational design. Strategic intentions emphasising market development and technological change were stated by these women. It has been suggested that women entrepreneurs prefer a managed approach to business growth as opposed to following more risky growth strategies.

Our conclusion is encouraging: we have seen that with the proliferation of educational programs, research support, policy development, and an eventual increase in financial opportunities as markets and economies recover, more and more women around the world will embark on entrepreneurial paths

7 Types of Entrepreneurs

  • Serial Entrepreneurship

The general definition proposes that serial entrepreneurs are those entrepreneurs who have put up for sale or stopped their original businesses but afterwards inherited, established, and/or obtained other businesses. Serial entrepreneurs classically wish to egress from an early venture when entrepreneurial opportunities are supposed to have been fatigued. Once they disappear, they look for new potential with a fresh venture. Serial entrepreneurs are known to start numerous firms; some of which are booming and others are not.

  • Nascent Entrepreneurs

Persons who are bearing in mind the organization of a novel business.

  • Novice Entrepreneurs

Also referred to as trainee, first time, or recruiting entrepreneurs. These individuals at present own one business and have no previous business possession understanding as an originator, a successor, or a buyer.

  • Habitual Entrepreneurs

Also referred to as business generators and skilled founders. These are individuals who have recognized, inherited, and/or bought more than one business. Stated another way, they start or buy several businesses at one time or successively and are recognized on the basis of two dimensions: whether a novel or obtainable business is concerned and whether the entrepreneurial act is sequential (serial) or synchronized (portfolio).

  • Portfolio Entrepreneurs

Referred to as manifold (business) entrepreneurs and analogous entrepreneurs. These are persons who have establish more than one company but still own the most recent businesses established prior to the start-up of their present, new, and/or sovereign schemes. Or those who have retained their original businesses but at a later on date have inherited, established, and/or bought other businesses.

(The International Journal of Entrepreneurship and Innovation, Feb 2005, Pg1)

  • Immigrant, Ethnic, and Minority Entrepreneurship

Studies of immigrant-, ethnic-, and minority-owned businesses should all be the same. Are not all immigrants a minority? Yes. Are not all immigrants ethnic? Yes, but the term “ethnic” includes more than immigrants. The three classes are viewed accordingly from a federal viewpoint. In the market for government contracts, ethnic firms are given with equal care. Federal immigration laws control immigrants; and a majority of “ethnics” are citizens of this country and part of our American fabric that we commonly identify as “the melting pot. For an aggregate of both immigrant entrepreneurs as well as indigenous ethnic entrepreneurs, researchers use the word “minority entrepreneur.”

  • Dual Nationality – Immigrant and Ethnic Entrepreneurship

In an environment that gradually resembles a global community, dual nationality reflects the rising uncertainty that can impact patriotic allegiance. Dual citizenship would make it simpler for owners to work, fly, and buy property abroad and make unlimited investments back home. Some scholars suggest that dual citizenship may be obtained by as many as 25 million United States people. In 1967, the U.S. Supreme Court affirmed the right to dual citizenship, but the argument continues: no man can serve two masters” versus “a child has two parents and can love both mother and father.

Innovations in Entrepreneurship Education

Entrepreneurship education nowadays is like a child who has abruptly full-fledged. The regulation has achieved spanking respect and is enjoying growing demand. Creative concept of tournaments, internships and advisory opportunities that allow learners to apply entrepreneurial skills (Ted Fuller, 2002, Pg 325-326). Competitions for business proposals are a means of infusing any strategic fire into an inherently safe environment, and innovation is reaching even this “mainstream” tool of entrepreneurship education.

Today, entrepreneurship education in U.S. has exploded to more than 2,200 courses at over 1,600 schools; 277 endowed positions; 44 refereed academic journals, mainstream management journals devoting more issues (some special issues) to entrepreneurship; and over 100 established and funded centers. The discipline’s accumulated “wealth” has grown to exceed $440 million with over 75% of those funds accruing since 1987 (The International Journal of Entrepreneurship and Innovation, May 2005, Pg 1-3).

New Ventures for Entrepreneurs

According to Jones-Evans Dylan, Carter Sara (2000, Pg 377-378) entrepreneurs get thrilled over their novel ideas and they cannot hang around to be in a yacht and float above the Caribbean. A few will accomplish achievement if they are elegant and use their assets intelligently. Innovation is the key to successful Entrepreneurial Process. Innovation is only one percent motivation and ninety nine percent patience and hard work. It actually takes time and hard work to sparkle a brainwave into a creation that can be sold.

One in thirty three grown-up in the UK today is an entrepreneur. This observable fact is by no means limited to Europe. The foremost country for entrepreneurship is Brazil, where one in eight mature person is an entrepreneur. Australia is also at the back of the U.S., with one in twelve adult entrepreneur (Ted Fuller, 2002, Pg 326).

In recent times, these characteristic; Innovation, planning, decesion-making and risk-taking, especially innovation and risk-taking, were the leading issues that describes those who decide to turn out to be entrepreneurs. Consider it or not, entrepreneurs are not presently born. Well, some, certainly, seem to be likely -born entrepreneurs, except for the rest of us, the values of entrepreneurship can absolutely be obtained by hard work and proper functioning. Following are few points which are considered for the new ventures for entrepreneurs in the near future:

  1. Sustained elevated rates of innovation which generates openings for new firms.
  2. Sustained expansion of the service division which is the upper-most expanded area for novel organisations creation.
  3. A boost in the number of practical organisations to which associations can subcontract their purposes, and open circumstances for entrepreneurs.
  4. Optimistic environment for small business – a universal awareness that small business is a hopeful authority on the economic comfort and security of the country, giving entrepreneurs authority and admiration.
  5. Expansion in international business prospects.

Conclusion

In conclusion, by arguing that agents’ choices are influenced by what others have chosen, we support the idea that human decisions about undertaking an entrepreneurial activity are interdependent. We describe the importance of cultural traits in shaping the productive make-up of an economy and use this intuition to complement the traditional argument on the emergence of productive networks. We then use both effects to suggest that entrepreneurship exhibits increasing returns to adoption, thereby promoting growth. Our disagreement also has policy inference. Every person has a decision threshold that is the end at which the personal family member return to entrepreneurship becomes constructive. The sequence of individuals’ decisions made on the basis of these thresholds determines the quantity of entrepreneurship which, in turn, feeds future individual decisions and, by promoting the mobilization of resources and concentration of activity, encourages growth (Sandberg, 2004-5, Pg 10-12).

Entrepreneurship is focused on economic and social philosophy, and changes in both.  However there are risks associated with the innovation. Innovation is the important instrument for an entrepreneur to be successful. It is based on a new concept or an idea, which may contribute to social, technological or economical innovation that may brings success and wealth to the entrepreneur rather than variation. There is a need that these innovations should be addressed in a systematic manner. The risk should be properly identified, calculated and minimized as much as possible. (Drucker, 1997, Pg 103-104) The field of entrepreneurship is needed to be advanced so as to make contributions to the practice of management, it consistency and agreement by it practitioners as well more research upon the entrepreneurship issues.

Works Cited;
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  • Carter Sara; Enterprise and Small Business: Principles, Practice and Policy, 1st Edition, Financial Times, (February 2000), ISBN:0-201-39852-4. Pg 367-383.
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