no universally accepted definition of entrepreneurship, a phenomenon with many concepts
definition for class: the creation of any business, for profit or for common good, without regard to resources under the entrepreneur’s control, in order to seize a new opportunity for needed or wanted products, services, materials or business models
historically…
- term referred to an individual who takes on risk of turning vision into successful business enterprise
- some consider it as the creation of new organizations, while others focus on wealth creation and ownership
- franchising, corporate venturing, management takeover, and family business
- some have adopted opportunity based view and suggests entrepreneurship is about discovery and exploitation of profitable market opportunities
other forms of ownership…
- franchise: method of distributing products or services involving a franchisor, who establishes the brand’s trademark or trade name and a business system, and a franchise, who pays a royalty and usually an initial fee for right to do business under franchisor’s name and system
- contract is binding the twi parties is the “franchise” but more commonly refers to actual business that franchisee operates. practice of creating and distributing brand and franchise system referred to as franchising
- corporate venture: also known as venture capital- practice of directly investing corporate funds into external startup companies. this is usually done by large companies who wish to invest small, but innovative, startup firms. they do so through joint venture agreements and acquisition of equity stakes. investing company may also provide the startup with management and marketing expertise, strategic direction and or a line of credit.
general criteria of entrepreneurship:
- developing something new with value by dedicating the required time, commitment, and perseverance, undertaking the associated risks and rewards with objective of achieving prosperity and wealth
- can be a new start up organization or part of revitalizing an existing organization in response to an observed opportunity
- not only evident by new firms coming into the market but also by innovative and similar entries of existing firms into new markets
- entrepreneurial activities vary significantly, in relation to the type of organization and the level of creativity and innovation within the organization
track records of entrepreneurs: well known 21st century entrepreneurs have all faced different challenges and obstacles along the way, but the one thing they all have demonstrated is commitment and perseverance to their core goals and objectives