Entrepreneurship Definitions and Evolution

Podcast Beta

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is a key aspect of entrepreneurship according to multiple scholars?

Adhering to traditional business practices

Maximizing personal wealth

Creating new products or services (correct)

Employment generation

How does Di-Masi (2010) define an entrepreneur?

An employee of a successful company

A risk-taker focused on theories

An individual who identifies market opportunities (correct)

A person who avoids instability

According to Scarborough (2013), what do entrepreneurs establish in the face of risk?

New businesses (correct)

Non-profit organizations

Franchises of existing brands

Government entities

What trait is common among entrepreneurs as indicated in the definitions provided?

Ability to predict market changes Signup and view all the answers

Which definition aligns with the view of entrepreneurship as an innovation-driven process?

Mobilizing resources to tackle market changes Signup and view all the answers

What does the perspective of Eze (2010) emphasize about entrepreneurs?

Identifying opportunities and mobilizing resources Signup and view all the answers

Which of the following is NOT a characteristic of entrepreneurs as described by various scholars?

Fear of making decisions Signup and view all the answers

What aspect is commonly associated with entrepreneurship according to Bagby (1998)?

Utilizing instability for profit Signup and view all the answers

What is the primary goal of an entrepreneur when establishing a new venture?

To generate profit and growth Signup and view all the answers

How does the Business Dictionary (2010) define an entrepreneur?

A person undertaking the conception and management of a venture Signup and view all the answers

What primary role do entrepreneurs play according to Schumpeter?

Innovators Signup and view all the answers

How do Shane and Venkataraman define entrepreneurs?

Individuals who identify and exploit market opportunities Signup and view all the answers

What key ability does Hisrich and Peters associate with entrepreneurs?

Addressing market inefficiencies Signup and view all the answers

According to Kirzner, what skill is crucial for an entrepreneur?

Efficiently allocating scarce resources Signup and view all the answers

What does Casson emphasize about entrepreneurs?

Their capability to navigate uncertainty Signup and view all the answers

What do Gartner's views depict entrepreneurs as?

Pioneers entering new markets Signup and view all the answers

What defines an intrapreneur, as per Jones, George, and Hill?

A manager identifying opportunities for product improvements Signup and view all the answers

What term did Pinchot coin related to entrepreneurship within companies?

Intrapreneur Signup and view all the answers

What focus does intrapreneurship involve within organizations?

Fostering an entrepreneurial mindset Signup and view all the answers

In what way can intrapreneurs contribute to an organization?

By exploiting business opportunities Signup and view all the answers

Which of the following best describes entrepreneurship according to Aruwa?

The willingness and ability to seek investment opportunities and operate an enterprise. Signup and view all the answers

What is a key aspect of entrepreneurship as mentioned in the content?

Risk-taking. Signup and view all the answers

According to Gartner, entrepreneurship is viewed as what?

The creation of new organizations. Signup and view all the answers

Which definition aligns with Nwachukwu's perspective on entrepreneurship?

A process of recognizing and evaluating business opportunities. Signup and view all the answers

What does the content suggest is a broader perspective of entrepreneurship?

The pursuit of opportunities irrespective of current resources. Signup and view all the answers

Penrose’s definition of entrepreneurship focuses on what aspect?

Identification of opportunities within the economic system. Signup and view all the answers

Which activity is NOT typically associated with entrepreneurship based on the content?

Exclusively sticking to traditional roles. Signup and view all the answers

Leibenstein's definition of entrepreneurship emphasizes what?

Activities necessary to create or operate an enterprise in undefined markets. Signup and view all the answers

Which of the following encompasses the multifaceted nature of entrepreneurship?

Diverse definitions and perspectives offered by various scholars. Signup and view all the answers

What does the term 'entrepreneur' primarily derive from?

The French term 'entreprendre' Signup and view all the answers

Who was historically suggested to be the first to introduce the concept of entrepreneurship?

Richard Cantillon Signup and view all the answers

During the colonial era in Nigeria, entrepreneurs commonly served as what?

Intermediaries for colonial masters Signup and view all the answers

What was a significant barrier to entrepreneurship in Nigeria during colonial times?

Competition with foreign products Signup and view all the answers

What act was introduced in Nigeria to support indigenous entrepreneurship after independence?

The Nigerian Enterprise Promotional Act of 1977 Signup and view all the answers

What economic activities did indigenous Nigerians engage in during the pre-colonial era?

Farming and craft trades Signup and view all the answers

What is a primary role of an intrapreneur within an organization?

Pursue innovation within the current organizational structure Signup and view all the answers

What differentiates intrapreneurs from entrepreneurs?

Intrapreneurs operate within the framework of an organization Signup and view all the answers

What does the term ‘entrepreneurship’ originate from?

French word meaning to pursue opportunities Signup and view all the answers

Which individual is credited with first using the term ‘Entreprendre’?

Ricardo Cantillon Signup and view all the answers

What is the primary purpose of entrepreneurship according to the definition provided?

To create opportunities through innovation Signup and view all the answers

How did the Oxford English Dictionary define ‘entrepreneur’ in 1897?

A manager of a public musical institution Signup and view all the answers

What is the main benefit of intrapreneurship for organizations?

Intrapreneurs drive innovation and growth Signup and view all the answers

Which of these statements best describes an entrepreneur?

Creates new business ventures independently Signup and view all the answers

Who coined the modern term ‘entrepreneur’ as it relates to economic agents?

J.B. Say Signup and view all the answers

What advantage does intrapreneurship provide to organizations?

Ability to adapt and maintain competitive edge Signup and view all the answers

Study Notes

Entrepreneurship Defined

There is no single, universally agreed-upon definition of entrepreneurship.
Diverse scholars have offered various definitions based on different aspects of entrepreneurship.
Entrepreneurship encompasses a range of activities, including self-employment, organizational creation, innovation, resource combination, and market opportunity identification and exploitation.
Entrepreneurship is essential for economic development.

Entrepreneurship: Evolution of Definitions

Aruwa (2006): Entrepreneurship is the willingness and ability to seek investment opportunities and successfully establish and operate an enterprise.
Penrose (1963): Entrepreneurship involves identifying opportunities within the economic system.
Leibenstein (1968, 1979): Entrepreneurship includes activities necessary to create or operate an enterprise where markets are not well-established or clearly defined, or where parts of the production function are unknown.
Gartner (1988): Entrepreneurship is the creation of new organizations.
Okpara (2000): Entrepreneurship involves the willingness and ability to identify investment opportunities and successfully establish and manage an enterprise.
Nwachukwu (1990): Entrepreneurship is a process involving recognizing and evaluating business opportunities, acquiring necessary resources, and taking appropriate action for success.

Entrepreneurship: Key Aspects

Risk-taking: Entrepreneurs embrace uncertainty and potential losses in pursuit of opportunities.
Team Formation: Entrepreneurs effectively assemble and manage teams to achieve business objectives.
Resource Management: Entrepreneurs efficiently allocate and utilize resources like capital, labor, and technology.
Planning & Vision: Entrepreneurs develop comprehensive plans, set goals, and have a clear vision for the future of their ventures.

Who is an Entrepreneur?

Di-Masi (2010): Entrepreneurs identify market opportunities and possess the motivation, drive, and ability to mobilize resources to capitalize on them.
Wikipedia (2010): Entrepreneurs are individuals who own and are accountable for new ventures, ventures, or ideas.
Knight (1921): Entrepreneurs attempt to predict and act upon market changes.
Business Dictionary (2010): Entrepreneurs conceive, organize, and manage ventures while seeking profit.
Eze (2010): Entrepreneurs identify opportunities and mobilize resources to transform ideas into businesses.
Envick & Langford (2000): Entrepreneurs own and operate their businesses.
Bagby (1998): Entrepreneurs utilize instability or lack to create new products or modify existing ones for profit.
Scarborough (2013): Entrepreneurs establish new businesses facing risk and uncertainty, aiming for profit and growth by identifying opportunities and assembling resources.

Attributes of Entrepreneurs

Innovators (Schumpeter, 1934): Entrepreneurs introduce new products, services, or business models.
Opportunity Exploiters (Shane & Venkataraman, 2000): Entrepreneurs identify and exploit market opportunities through creative resource utilization.
Visionary Leaders (Hisrich & Peters, 2002): Entrepreneurs inspire others and create value by addressing market inefficiencies.
Efficient Resource Allocators (Kirzner, 1973): Entrepreneurs effectively utilize scarce resources for business opportunities.
Navigators of Uncertainty (Casson, 1982): Entrepreneurs make decisions under imperfect information.
Pioneers (Gartner, 1988): Entrepreneurs enter new markets or segments, dealing with challenges and uncertainties.

Intrapreneurship: Corporate Entrepreneurship

Intrapreneurs are individuals who exhibit entrepreneurial behavior within established organizations.
They identify and exploit business opportunities within the organization.
Jones, George, & Hill (2000): Intrapreneurs identify opportunities for product improvements and oversee product development.
Pinchot (1985): Intrapreneurs are innovative employees.
Intrapreneurs contribute to organizational competitiveness and profitability.
Covin & Slevin (1986) & Burgelman (1983): Corporate entrepreneurship involves empowering employees to take initiative, think creatively, and pursue innovative projects.

Entrepreneurs vs. Intrapreneurs

Entrepreneurs: Create new ventures independently, assuming all aspects of the business.
Intrapreneurs: Innovate and drive change within existing organizations, working within the framework of the organization.

Origin of Entrepreneurship

The term "entrepreneur" derives from the French word "entreprendre," meaning "to undertake" or "to pursue opportunities."
Ricardo Cantillon (1723): First used "entreprendre" to describe economic agents coordinating inputs for uncertain profit.
J.B. Say (1821): Coined the term "entrepreneur" to describe individuals creating new wealth.
Schumpeter (1951): Suggested Cantillon was the first to introduce the concept of the entrepreneur.

Entrepreneurship Development in Nigeria: History

Pre-Colonial Era: A thriving entrepreneurial culture existed with indigenous people engaging in farming and crafts.
Colonial Era: Entrepreneurs faced challenges as they were relegated to serving as intermediaries for colonial masters.
Post-Colonial Era: Policies and initiatives aimed to promote indigenous entrepreneurship for economic development.

Post-Colonial Era Initiatives

Nigerian Enterprise Promotional Act of 1977: Reserved certain industries exclusively for Nigerians.
Post-Independence Policies: Focused on promoting indigenous businesses and fostering economic growth.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Explore the multifaceted definitions of entrepreneurship through scholarly perspectives. This quiz examines various interpretations and the critical role entrepreneurship plays in economic development. Test your understanding of key concepts and historical definitions in the field of entrepreneurship.