Evolution of the Concept of Entrepeneurship
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The word entrepreneurship find its origin in a french word "entreprendre" which means to " undertake". The term entrepreneurship, in french, in literally translated , means " go-batween" and has been used since the 12 century. An earliest example of an entrepreneur as go-between is marco polo, which attempted to establish trade routes to far east. As go-betwen, marco polo would sign common contract with capital providers ( capitalist) to sell his goods, which provided insurance. During the seventh century , the term entrepreneur was used for a person who entered into a contractual arrangement with the government to perform services or supply stipulated products. Since the contract price was fixed, any resulting profits or losses belonged to the entrepreneur, thereby assuming the risk arising out of his expedition.
Richard cantillon, a noted french economist during the 17th century is credited as the founder of the term entrepreneurship.
He developed on of the early theories of entrepreneurship. He viewed the term entreprebeur as a risk taker, observing the problems between supply and demand and option for buying cheaply and selling at a higher price.
Richard cantillon said the entrepreneurs is one who undertake an Enterprise, especially a contractor who act as an intermediary between capital and labour. In recent times, there has been a great deal of attention paid to the subject of entrepreneurship as many people have realized that small firms contribute considerably to the economic well being of nation's in no small measure. Consequently, developing countries have established policies and tax incentive that encourage the planning and implementation of small business with the beliefs that small business can potentially grow into a large business.
Jean Baptise say in 1767 to 1832 expanded the ideas of cantillon and conceptualize an entrepreneur as an economic agent who unites all means of production, land of one, labour of another and capital of yet another and thus produce product. By selling the product in the market, he pays rent on land , wages to labour, interest on capital and what remains is his profits he stated this 1827.
Innovations is a key tool of entrepreneurs, by which they exploit an opportunity for a different business or different services and Joseph schumpter defined entrepreneurs as an innovator. In his words, "The entrepreneurs in an advance economy is an individual who introduced something new in economy. A method of production not yet tested by experience in the branch of manufacturing, a product with which consumers are not yet familiar, a new source of raw material or of new markets and the like". Schumpter also labeled entrepreneurs as "creative destructors" a label that has been linked to successful entrepreneurs in the world today , the innovations, creativity and risk bearing are all integral part of being an entrepreneur.
It involves the ability to create and conceptualize something new, which can consist of anything from new product to a new distribution system to method for developing a new organization structure.
Nature of entrepreneurship : what it means
Although there is no official definition of entrepreneurship, the following has evolved from the work done at Harvard business shcool which now generally accepted by many authors. "Entrepreneurship is the process of creating or seizing an opportunity and pursuing it regardless of the resources currently controlled" (Timmons, 2994). Drucker says " entrepreneurship is "risky" mainly because so few of the so called entrepreneurs know what they are doing." He further proposed that entrepreneurship is a practice.
What this means is that entrepreneurship is not a state of being nor is it characterise by making plans that are not acted upon. Entrepreneurship begins with action and creation of new organization. This organization may or may not be one self sustaining and in fact, may never earn significant revenue. However, when individuals create a new organization, they have entered the entrepreneurship paradigm.
Entrepreneurship, according to onuoha in 2007 is "the practice of starting new organization or revitilizing mature organization, particularly new businesses generally in response to identified opportunities. "Similarly, to Dollinger in 2003 sees entrepreneurship as the creation of an innovative economic organization (network of organization) for the purpose of gain or growth under condition of risk and uncertainty.
Hisrich, Peter's, and Shepherd in 2008, sees entrepreneurship as the process of creating something different with value by devoting the necessary time and effort, assuming the accompanying financial, psychic and social risk , and receiving the resulting reward of monetary and personal satisfaction and independence.
According to Aldrich and weidenmeyer in 1993 says entrepreneurship is the mobilization of resources to pursue opportunities. Delmur in 1996 considers entrepreneurship as the initiation, commitment and leadership that institution and organizations to exploit opportunities in the market with the aim of financial gain.
Amabile in 1997 sees entrepreneurship as the implementation of new ideas in a new business venture or in an existing organization. Shane and Venkataraman in 2000 also sees entrepreneurship as the study of source of opportunities, how the opportunities are discovered, evaluated and exploited.
Farhangmehr and Goncalves in 2016 extend this conceptualization to include the ideas of environmental complexity and uncertainty. There are therefore, many conceptualization of what constitutes entrepreneurship.
One of the earliest writers in the field of entrepreneurship recognise actors who promote entrepreneurship_ who drive the process of entrepreneurship in nation's. This author called this actors as entrepreneurs. His name was Joseph schumpter.
Schumpter lived between 1883 to 1950. Schumpter argued that entrepreneurs are "creative rebels" who are innovators of new products and services, new methods of production, new source of supply and new forms of organizations. Schumpter also labeled entrepreneurs as "creative destructors", a label that has been linked to successful entrepreneurs in the world today. From this this exposition, we can safely characterise entrepreneurs as possessing the following characterise.
1. Entrepreneurs are involved in identifying, evaluating and exploiting opportunities in the market to create new business
2. Entrepreneurs mobilise resources to pursue these opportunities
3. There must be initiation, commitment and leadership to exploit these market opportunities for profit
4. Entreprenuers are involved in doing something new in either a new organization or wthin and existing organization
5. The entrepreneurs is conversant with the environment in which he or she operates
6. Entrepreneurs focus on innovations in everything about founding and managing a new business or existing business, organization or institution.
In Conclusion regardless who or from which decipline the term entrepreneurship is being defined , the concept of innovations and creativity are integral part of the development and concept of entrepreneurship and should be at the heart of any meaningful definition of the concept.
Entrepreneurship is therefore, the dynamic process of creating ceremonial wealth. The wealth is created by individuals who assume the major risk in terms of equity , time and career commitment or provide value for some product or service. The products or service may or may not be new or unique, but value must somehow be infused by the entrepreneurs by receiving and locating necessary skills and resources according to Ronstadt in 1984.
From this definitions, entrepreneurship can be summed up as nothing but the process of creating something new with a value, particularly responding to the opportunities available. It involves time, effort and assumption of risk, with the expectation of receiving the rewards at the end. The rewards can take any form it could be monetary or non monetary ( personal contentment).
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