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Subject : Entrepreneurship and Business Planning (EntrepHRM)
Definition of Entrepreneurship
* The art of science of innovation and risk-taking for profit in business.
* The practice of starting new organizations or revitalizing mature organizations, particularly new businesses generally in response to identified opportunities.
* It came from the root word “entrepreneur”
* French word means “entreprendre” which means undertake
Common Themes in Definitions of Entrepreneurship
* Individual
* Innovation
* Organization Creation
* Creating Value
* Profit or not-to-profit
* Growth
* Uniqueness
* Process
Misconceptions about Entrepreneurship
* Successful entrepreneurship needs only a great idea
* Entrepreneurship is easy
* Entrepreneurship is a risky gamble
* Entrepreneurship is found only in small businesses
* Entrepreneurial ventures and small businesses are the same thing.
Men behind Entrepreneurship
Eighteenth Century
* Early 1700s – Richard Cantillon, coined the term entrepreneur who was then used to describe a “go-between”or a “between-taker”
* Late 1700s – the risk bearing concept entrepreneur was expanded to include planning, supervising, organizing, and owning the factors of production.
Nineteeth Century
Early part of the century – Jean Baptiste Say proposed the difference between the profits of entrepreneurship from the profits of capital ownership.
Late part of the century – distinction was made between those who supplied funds and earned interest, and those who profited from entrepreneurial abilities.
Twentieth Century
* Early part of the century – In mid 1930s, the concept of entrepreneurship expanded when Joseph Schumpeter coined the term creative destruction, which is defined as the process whereby existing products, processes, ideas and businesses are replaced with better ones.
* Late part of the century – Peter Drucker

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