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.