PART 1: INTRODUCTION

THE DEFINITION OF ENTREPRENEURSHIP AND ENTREPRENEUR :

         The concept of entrepreneurship has a wide range of meaning. “Entrepreneurship” has become a buzzword in the public debate in recent years. However, the concept of entrepreneurship is often used without a precise definition, and it may not always be completely clear what the different measure is actually measuring.

1.1  ENTREPRENEURSHIP

       What is entrepreneurship? Entrepreneurship is defined as the process of starting a business, typically a startup company offering an innovative product, process or service. The entrepreneur sees an opportunity and often exhibits biases in taking the decision to exploit the opportunity. The exploitation of entrepreneurial opportunities includes design actions to develop a business plan, acquire the human, financial and other required resources, and to be responsible for its success or failure. Entrepreneurship may operate within an entrepreneurship ecosystem which includes government programs and services that support entrepreneurs, entrepreneurship resources (for example, business incubators and seed accelerators), entrepreneurship education and training and financing such as loans, venture capital financing, and grants

1.1.1 BY JOSEPH SCHUMPETER

         In the 20th century, entrepreneurship was studied by Joseph Schumpeter in the 1930s and other Austrian economists such as Carl Menger, Ludwig von Mises and Friedrich von Hayek. The term "entrepreneurship" was coined around the 1920s, while the loan from French of the word entrepreneur dates to the 1850s.

        According to Schumpeter, an entrepreneur is willing and able to convert a new idea or invention into a successful innovation.  Entrepreneurship employs what Schumpeter called "the gale of creative destruction" to replace in whole or in part inferior offerings across markets and industries, simultaneously creating new products and new business models. Thus, creative destruction is largely responsible for long-term economic growth. The idea that entrepreneurship leads to economic growth is an interpretation of the residual in endogenous growth theory and as such continues to be debated in academic economics.

         For Schumpeter, entrepreneurship resulted in new industries and in new combinations of currently existing inputs. Schumpeter's initial example of this was the combination of a steam engine and then current wagon making technologies to produce the horseless carriage. In this case the innovation, the car, was transformational, but did not require the development of dramatic new technology. It did not immediately replace the horse-drawn carriage, but in time, incremental improvements reduced the cost and improved the technology, leading to the modern auto industry.

1.2  ENTREPRENEUR

       Who is entrepreneur? Entrepreneur is an individual who, rather than working as an employee, runs a small business and assumes all the risk and reward of a given business venture, idea, or good or service offered for sale. The entrepreneur is commonly seen as a business leader and innovator of new ideas and business processes. On the other extreme of definition, anyone who wants to work for him or herself is considered to be an entrepreneur.

         Entrepreneurs play a key role in any economy. These are the people who have the skills and initiative necessary to take good new ideas to market and make the right decisions to make the idea profitable. The reward for the risks taken is the potential economic profits the entrepreneur could earn.