Meaning and Concept
The
term “Entrepreneurship” refers to the method in which a new small
business is launched, planned, and managed. The individuals who start a
business are known as entrepreneurs, based on the concept of entrepreneurship.
History
The
term entrepreneur has a history that originated in the 17th century, and the
word derives from the French word Entrependre means to pursue, which
signifies the challenge of a new enterprise to the persons who undertake. The
term entrepreneurship may therefore be defined as the creation, organization,
and management of new projects, along with the possibility of the
owner(s)/entrepreneur gaining benefit at the end (s)1.
A shift of Economic Resources
Economic
resources have been shifted from low productivity to high productivity by
higher-yielding entrepreneurs. And various uncertainties are involved in
entrepreneurship, whether related to the market, business environment, and
changes or trends, etc., obstacles and barriers. Entrepreneurship is not a
straightforward or straightforward process; it involves many problems,
challenges, uncertainty, resistance, and obstacles. Issues such as the access
and availability of (financial) resources that need to be financed by business
assets. Obtaining credit for the business could also be an issue. The
possibility of changes in entrepreneurial activities and market demand is also
present. Besides, there may be unpredictable changes in the market, which have
a significant influence on entrepreneurial activity. From now on, entrepreneurs
take the risk of many events as they do their business with uncertainty and
make adjustments according to the market in which they operate, which adversely
affect their activities, in the hope of making a profit at the end.
Link with Economy
Today,
the growth of entrepreneurial activity has become important due to the fact
that it is the core force that induces economic prosperity and development
through numerous economic activities. Besides, the creation of
entrepreneurship will help accomplish other goals such as the development and
growth of industries by beginning new enterprises, socially or economically
developing local community development, and creating and generating new work
prospects that will raise the jobs rate, also raising living standards.
Economic Theory
According
to economic theory, economic growth, along with the development of
entrepreneurship, occurs when economic conditions are promising. Also, the key
role/feature of entrepreneurs in the minds of economists is their ability and
capacity to coordinate capacity and production to monitor the factors used in
production2. Economic theory assumes that the rate of growth of
entrepreneurial activity within a nation contributes to the growth or growth of
the country's economy.
Entrepreneurs
start a business with innovative ideas to offer something different to the
market or to supply the existing market with the available offers. To gain
economic and financial growth, they start a business with the urge to grow up.
With the goals of earning a profit, as the entrepreneurs start their business.
Their activities not only create jobs for them (who owned the company) but also
create jobs for others as they hired staff to manage their activities and
activities and to run their company efficiently and effectively.
By
doing so, entrepreneurs not only improve their living standards but also assist
others (employees) to improve their living standards. They pay ta to the
government and are always busy in the economic activities; thus, they
contribute to the economic growth of the economy through all these activities.
Many researchers conduct studies to address or explore the link between
entrepreneurship and economic growth/development.
Entrepreneurship and Economic Development
Due to
differences in the contribution of entrepreneurship to economic growth or
economic activity, consideration of both the quantity and the quality of
entrepreneurship is essential.
Innovative Ideas and Intention to Growth
With
innovative ideas, entrepreneurs enter a market and are determined to grow.
Through growth-oriented, transformative and productive entrepreneurship, which
is considered innovative, new products, jobs and processes have been created,
and this entrepreneurship plays an essential role in encompassing the tax base
for the government. Entrepreneurship thus leads to the entire economy with the
goal of development that can only be accomplished by imagination and invention
that offers something new to the consumer or by joining a new market. Innovation
would be like introducing a new brand or adding something new to the current
brand. A significant contribution to the economy is made by these types of
activities. In addition to this, these activities open new doors for workers
and allow them to improve their standard of living. Additionally, these
activities help to reduce poverty as well as unemployment within a country.
Productive Economy
The
productive economy has been encouraged by entrepreneurs through the use of
effective as well as revolutionary new methods of development. Besides,
economic growth or economic progress may achieve equilibrium dependent on the
development of entrepreneurship.
Existing Services
When
entering a new market with a revolutionary idea(s), some start-ups have no
intention of development and creativity and they instead provide the same
offerings as those offered in the current market. However, with a fresh idea, a
few figures are entrepreneur seeks to reach the unserved market. Such types of
entrepreneurship have led to the creation of new jobs only for individuals who
own them, rather than contributing to the entire economy.
The Force that Driven the Static Economy Equilibrium to move forward.
Based
on the combination of the abilities and capabilities of the individual,
entrepreneurial activity is the critical force that drives the static economy
balance to move forward (s). Innovative and creative ideas and skills are
involved in these capabilities, and the result of these capabilities is the
identification and introduction of new products or services related to either
quality or any other aspect, a new method or process adopted for the company to
improve performance, seeks to enter a new market with innovations, the new way
to organize the production of innovation.
References
1. Leithy, W.E., 2017. Towards Creating an Entrepreneur
Competencies Model. Journal of Entrepreneurship & Organization
Management, 6(2), pp.215–221.
2. Julien, P.-A., 1993. Small businesses as a research subject:
Some reflections on knowledge of small businesses and its effects on economic
theory. Small Business Economics, 5(2), pp.157–166.
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