ENTREPRENEURSHIPCHAPTER 1

WHAT IS ENTREPRENEURSHIP?

Prof.Dr.Huseyin ARASLI

TERMS OF ENTREPRENEURSHIP

NEW INNOVATION FLEXIBLE DYNAMIC CREATIVE RISK-TAKING

DEFINITIONS THE PROCESS OF CREATING SOMETHING

DIFFERENT WITH VALUE BY DEVOTING THE NECESSARY TIME AND EFFORT, ASSUMING THE ACCOMPANYING FINANCIAL, PSYCHOLOGICAL, AND SOCIAL RISKS, AND RECEIVING THE RESULTING REWARDS OF MONETARY AND PERSONAL SATISFACTION

R.D. HISRICH, (1986)

DEFINITIONS

THE CREATION AND MANAGEMENT OF NEW BUSINESSES, SMALL BUSINESSES, AND FAMILY BUSINESS.

THE ACADEMY OF MANAGEMENT

S.A.SHANE, (1997)

COMMON THEMES IN DEFINITIONS OF ENTREPRENEURSHIP

Defining Defining EntrepreneurshipEntrepreneurship

Profit or Non-for-Profit or Non-for-ProfitProfit

GrowthGrowth

UniquenessUniqueness

The EntrepreneurThe Entrepreneur ProcessProcess

Creating ValueCreating Value

Organization Organization CreationCreation

InnovationInnovation

Source: W.B. Gartner, 1990

DEFINITION OF ENTREPRENEURSHIP

THE PROCESS WHEREBY AN INDIVIDUAL OR A GROUP OF INDIVIDUALS USE ORGANIZED

EFFORTS AND MEANS TO PURSUE OPPORTUNITIES TO CREATE VALUE AND GROW BY FULFILLING WANTS AND NEEDS THROUGH INNOVATION AND UNIQUENESS, NO MATTER

WHAT RESOURCES ARE CURRENTLY CONTROLLED.

MARY COULTER, 2001

HISTORICAL PERSPECTIVES ON ENTREPRENEURSHIP

ENTREPRENEURSHIP IS NOT A TWENTIETH OR TWENTY-FIRST-CENTURY PHENOMENON

EARLY IN THE EIGHTEENTH CENTURY THE FRENCH TERM ENTREPRENEUR WAS FIRST USED TO DESCRIBE A “GO-BETWEEN” OR A “BETWEEN-TAKER”

RICHARD CANTILLON, A NOTED ECONOMIST AND AUTHOR IN THE 1700s, USED THE TERM (ENTREPRENEUR) TO REFER TO A PERSON WHO TOOK AN ACTIVE RISK-BEARING ROLE IN PURSUING OPPORTUNITIES

HISTORICAL PERSPECTIVES ON ENTREPRENEURSHIP

THIS INDIVIDUAL-THE ENTREPRENEUR-SERVED AS THE BRIDGE BETWEEN SOMEONE WHO HAD THE CAPITAL, OR MONAY, BUT WHO CHOSE NOT TO PERSONALLY PURSUE THOSE OPPORTUNITIES

INSTEAD AN INDIVIDUAL (OR GROUP OF INDIVIDUALS) FINANCED THE PURSUIT OF OPPORTUNITIES AND THE ENTREPRENEUR SERVED AS THE GO-BETWEEN-THE ACTIVE (ACTIVELY INVOLVED) RISK TAKER

HISTORICAL PERSPECTIVES ON ENTREPRENEURSHIP

LATE IN THE EIGHTEENTH CENTURY, THE CONCEPT OF ENTREPRENEURSHIP WAS EXPANDED TO INCLUDE NOT ONLY THE BEARING OF RISKS BUT ALSO

THE PLANNING,

SUPERVISING,

ORGANIZING,

AND EVEN OWNING THE FACTORS OF PRODUCTION.

HISTORICAL PERSPECTIVES ON ENTREPRENEURSHIP

THE END OF THE NINETEENTH CENTURY, THE CONCEPT OF ENTREPRENEURSHIP CHANGED SLIGHTLY AGAIN TO DISTINGUISH BETWEEN THOSE WHO SUPPLIED FUNDS AND EARNED INTEREST AND THOSE WHO PROFITED FROM ENTREPRENEURIAL ABILITIES.

DURING THE EARLY PART OF THE TWENTIETH CENTURY, THERE WASN’T MUCH CHANGE IN HOW THE ROLE OF ENTREPRENEURSHIP WAS VIEWED

MISCONCEPTIONS ABOUT ENTREPRENEURSHIP

SUCCESSFUL ENTREPRENEURSHIP TAKES ONLY A GREAT IDEA

ENTREPRENEURSHIP IS EASY ENTREPRENEURSHIP IS A RISKY GAMBLE ENTREPRENEURSHIP IS FOUND ONLY IN

SMALL BUSINESS ENTREPRENEURIAL VENTURES AND

SMALL BUSINESSES ARE THE SAME THING

THE CURRENT IMPORTANCE OF ENTREPRENEURSHIP

INNOVATION

NUMBER OF NEW START-Ups

JOB CREATION

THE BENEFITS OF ENTREPRENEURSHIP

OPPORTUNITY TO CREATE YOUR OWN DESTINY OPPORTUNITY TO MAKE A DIFFERENCE OPPORTUNITY TO REACH YOUR FULL POTENTIAL OPPORTUNITY TO REAP (get) UNLIMITED PROFITS OPPORTUNITY CONTRIBUTE TO SOCIETY AND BE

RECOGNIZED FOR YOUR EFFORTS OPPORTUNITY TO DO WHAT YOU ENJOY AND HAVE FUN

AT IT

THE NINE DEADLY MISTAKES OF ENTREPRENEURSHIP

1. MANAGEMENT INCOMPETENCE2. LACK OF EXPERIENCE3. POOR FINANCIAL CONTROL4. FAILURE TO DEVELOP A STRATEGIC PLAN5. UNCONTROLLED GROWTH6. POOR LOCATION7. IMPROPER INVENTORY CONTROL8. INCORRECT PRICING9. INABILITY TO MAKE THE ENTREPRENEURIAL

TRANSITION

Discussion and Questions

Define entrepreneurship. Describe the historical perspectives of

entrepreneurship. Explain why entrepreneurship is important.

HOMEWORK 1

FIND OUT 10 ENTREPRENEURSHIP WEB SITES ADDRESS.

FIND OUT ENTREPRENEURSHIP JOURNAL WEB SITES ADDRESS AND COPY ONE ARTICLE WHICH IS RELATED WITH ENTREPRENEURSHIP.