What Is Entrepreneurship?

Devi Budi Wijayanti

Student of English Department

PGRI University Semarang

ENTREPRENEURSHIP

Entrepreneurship is often discussed under the title of the entrepreneurial factor, the entrepreneurial function, entrepreneurial initiative, and entrepreneurial behaviour and is even referred to as the entrepreneurial “spirit. The entrepreneurial factor is understood to be a new factor in production that is different to the classic ideas of earth, work and capital, which must be explained via remuneration through income for the entrepreneur along with the shortage of people with entrepreneurial capabilities. Its consideration as an entrepreneurial function refers to the discovery and exploitation of opportunities or to the creation of enterprise. Entrepreneurial behaviour is seen as behaviour that manages to combine innovation, risk-taking and proactiveness (Miller, 1983).

The entrepreneurial function implies the discovery, assessment and exploitation of opportunities, in other words, new products, services or production processes; new strategies and organizational forms and new markets for products and inputs that did not previously exist (Shane and Venkataraman, 2000). Due to the fact that there is no market for “opportunities”, the entrepreneur must exploit them, meaning that he or she must develop his or her capabilities to obtain resources, as well as organize and exploit opportunities. The downside to the market of “ideas” or “opportunities” lies in the difficulty involved in protecting ownership rights of ideas that are not associated with patents or copyrights of the different expectations held by entrepreneurs and investors on the economic value of ideas and business opportunities, and of the entrepreneur’s need to withhold information that may affect the value of the project.  

ENTREPRENEUR CAPITALIST MANAGER CHARACTERIZED BY

BEHAVIOUR -Discovers and exploits opportunities

-A creator who initiates and motivates the process of change -Capital owner: 

shareholders 

-Controlling shareholder 

-Passive shareholder -Administrates and manages resources 

-An administrator 

 -Accepts risks 

-Uses intuition, is alert, explores new business 

-Leadership, initiates new ways of acting 

-Identifies business opportunities 

-Creation of new Enterprise -Aversion to risktaking 

-Assesses alternatives 

  

-Choice of venture assets 

 -Aversion to risktaking 

-“Rational” decision-maker. Explotes business 

-Creates and maintains competitive advantage 

-Creates trust to enhance cooperation  

-Supervision of the administrative process  

The individual entrepreneur detects or creates business opportunities that he or she then exploits through small and medium-sized firms, normally participating in funding the capital for that firm, carries out the role of arbitrator or simply “sells the idea” of the business project. The “corporate entrepreneur” or the chief executive of large firms must also be considered. This figure is no longer limited to efficiently managing the firm’s assets and coordinating and controlling its activities; in the current climate, he or she must anticipate, articulate and manage change. In other words, they must reinvent the firm on a daily basis, creating new enterprise (spin-offs) and develop company networks. When discussing the figure of the corporate businessman, one must also consider the key shareholders that take an active part in the firm, along with managers that share in making up the firm’s basic competences. 

However, the manager’s function is first and foremost to supervise the process of combining resources, and efficiently manage the firm’s business portfolio. They have a key function when, as is normally the case, firms do not operate efficiently (Leibenstein, 1979), and instead are a long way short of their production boundaries. A second but fundamental task of the manager is to build up a reputation and an atmosphere of trust that transforms a conflictive system (individuals with conflicting objectives) into a system of cooperation. 

*Source: (http://www.uv.es/bcjauveg/docs/LibroCuervoRibeiroRoigIntroduction.pdf)