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Entrepreneurship is the creation or extraction of value.
More seevice definitions have described entrepreneurship as the process of designing, launching and running a new business, which is often initially a small businessor as the "capacity and willingness to develop, organize and manage a business venture along with any of its risks to make a profit. In the field of economicsthe term entrepreneur is used for an entity which has the ability to translate inventions or technologies into products and services.
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As an academic field, entrepreneurship accommodates different schools of thought. It has been studied within disciplines such as economics, sociology and economic history. These scholars tend to focus on what the entrepreneur does and what traits that an entrepreneur has see for example the text under the headings Elements below. This is sometimes referred to as the functionalistic approach to entrepreneurship. Entrepreneurship is an act of being an entrepreneuror "the owner or manager of a business enterprise who, by risk and initiative, attempts to make profits".
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Entrepreneurship is the process by which either an individual or a team identifies a business opportunity and acquires and deploys the necessary resources required for its exploitation. Earlyth-century French economist Jean-Baptiste Say http://www.xgs.in/blog/matchmaking-gold-coast/free-dating-in-thailand.php a broad definition of entrepreneurship, saying that it "shifts economic resources out of an area of lower and into an area of higher productivity and greater yield". Entrepreneurs create something new, something different—they change or transmute values.
The opportunity to become an entrepreneur requires four criteria. First, there must be opportunities or situations to recombine resources to generate profit. Second, entrepreneurship requires differences between people, such as preferential access to certain individuals or the ability to recognize information about opportunities.
Third, taking on risk is a necessity. Fourth, the entrepreneurial process requires the organization of people and resources. The entrepreneur is a factor in and the study of entrepreneurship reaches back to the work of Richard Cantillon and Adam Smith in the late 17th and early 18th centuries. However, entrepreneurship was largely ignored theoretically until the late 19th and early 20th centuries and empirically until a profound resurgence in business and economics since the late s. In the 20th century, the understanding of entrepreneurship owes much to the work of economist Joseph Schumpeter in the s and other Austrian economists such as Carl MengerLudwig von Mises and Friedrich von Hayek. According to Schumpeter, an entrepreneur is a person who go here willing and able to convert a new idea or invention into a successful innovation.
Entrepreneurship employs what Schumpeter called "the gale of creative destruction" to replace in whole or in part inferior innovations across markets how to start up a dating service industries, simultaneously creating new products including new business models. In this way, creative destruction is largely responsible for the dynamism of industries and long-run economic growth.
The supposition that entrepreneurship leads to economic growth is an interpretation of the residual in endogenous growth theory and as such is hotly debated in academic economics. An alternative description posited by Israel Kirzner suggests that the majority of innovations may be much more incremental improvements such as the replacement of paper with plastic in the making of drinking straws.
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The exploitation of entrepreneurial opportunities may include: [17]. Economist Joseph Schumpeter — saw the role of the entrepreneur in the economy as " creative destruction " — launching innovations that simultaneously destroy old industries while ushering in new industries and approaches. For Schumpeter, the changes and "dynamic disequilibrium brought on by the innovating entrepreneur [were] the norm of a healthy economy ". Entrepreneurship may operate hoe an entrepreneurship ecosystem which often includes:. In the s, usage of the term "entrepreneurship" expanded to include how and why some individuals or teams identify opportunities, evaluate them as viable, and then decide to exploit them. Entrepreneurs exhibit positive biases towards finding new possibilities and seeing unmet market needs, and a tendency towards risk-taking that makes them more likely to exploit business opportunities. The aervice first appeared in the French dictionary entitled Dictionnaire Universel de Commerce compiled by Jacques des Bruslons and published in How to start up a dating service considered the entrepreneur to be a risk taker who deliberately allocates resources to exploit opportunities to maximize the financial return.]
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