Entrepreneurship

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Entrepreneurship is the process of designing, launching and running a new business, which was originally a small business. The people who make this business are called entrepreneurs

Entrepreneurship has been described as "the capacity and willingness to develop, organize and manage business ventures along with its risks for profit". While the definition of entrepreneurship typically focuses on launching and running a business, because of the high risks involved in launching start-ups, a significant proportion of new business must be closed due to "lack of funding, poor business decisions, and economic crises, lack of market demand - or a combination of all this.

A broader definition of this term is sometimes used, especially in Economics. In this use, the Entrepreneur is an entity that has the ability to discover and act on opportunities to translate invention or technology into new products: "Entrepreneurs are able to recognize the commercial potential of discovery and regulate capital, talent, etc. The resources that turn discovery into innovation commercially viable. "In this sense, the term" Entrepreneurship "also captures innovative activities on the part of established companies, in addition to similar activities in new business sections.

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Element

Entrepreneurship is the act of becoming an entrepreneur, or "owner or manager of a business enterprise that, with risk and initiative, seeks to generate profits." Employers act as managers and oversee the launch and growth of a company. Entrepreneurship is the process whereby an individual or team identifies a business opportunity and obtains and disseminates the resources necessary for its exploitation. The early 19th century French economist Jean-Baptiste Say provided a broad definition of entrepreneurship, saying that it "shifts the economic resources out of the lower areas and into areas with higher productivity and greater yields." Entrepreneurs create something new, something different - they change or change value. Regardless of the size of the company, large or small, they can take part in entrepreneurial opportunities. The opportunity to become an entrepreneur requires four criteria. First, there must be an opportunity or situation to recombine resources to make a profit. Second, entrepreneurship requires differences among people, such as privileged access to specific individuals or the ability to recognize information about opportunities. Third, taking risks is a must. Fourth, the entrepreneurial process requires the organization of people and resources.

Entrepreneurs are a factor in entrepreneurial and study achieving a return to the work of Richard Cantillon and Adam Smith in the 17th century and early 18th century. However, entrepreneurship was largely ignored theoretically until the late 19th and early 20th centuries and empirically until a major revival in business and economics since the late 1970s. In the 20th century, entrepreneurial understanding owed much to the work of Joseph Schumpeter's economists in the 1930s and other Austrian economists such as Carl Menger, Ludwig von Mises, and Friedrich von Hayek. According to Schumpeter, an entrepreneur is a person who is willing and able to turn a new idea or discovery into a successful innovation. Entrepreneurship uses what Schumpeter calls a "creative destruction storm" to replace overall or partial inferior innovation across markets and industries, simultaneously creating new products including new business models. In this way, creative destruction is largely responsible for industrial dynamism and long-term economic growth. The notion that entrepreneurship leads to economic growth is an interpretation of the residuals in the theory of endogenous growth and thus is hotly debated in the academic economy. An alternative description proposed by Israeli Kirzner suggests that the majority of innovations may be more additional improvements such as replacing paper with plastics in the manufacture of straws.

Exploitation of entrepreneurial opportunities may include:

• Develop a business plan
• Hire human resources
• Obtain financial and material resources
• Gives leadership
• Responsible for the success or failure of the venture
• Risk avoidance

Economist Joseph Schumpeter (1883-1950) saw the role of entrepreneurs in economics as "creative destruction" - launching innovations simultaneously destroying old industries while delivering new industries and approaches. For Schumpeter, the changes and "dynamic imbalances brought by entrepreneurs who innovate [are] healthy economic norms". While entrepreneurship is often associated with new start-ups, small, nonprofit, entrepreneurial behaviors can be seen in small, medium and large companies, new and well established firms and in nonprofit and not-for-profit organizations, including voluntary sector groups, charitable organizations and government.

Entrepreneurship can operate in entrepreneurial ecosystems that often include:

• Government programs and services that promote entrepreneurship and support entrepreneurship and get started
• Non-governmental organizations such as associations and small business organizations that offer advice and guidance to entrepreneurs (eg through an entrepreneurial center or website)
• Small business advocacy organizations lobbying the government to increase support for entrepreneurship programs and more eco-friendly laws and regulations
• Entrepreneurial resources and facilities (eg business incubator and stage accelerator)
• Entrepreneurship education and training programs offered by schools, colleges, and universities
• Funding (eg bank loans, venture capital financing, angel investment and government and private foundation grants)

In the 2000s, the use of the term "entrepreneurial" extended to cover how and why some individuals (or teams) identify opportunities, evaluate them as viable, and then decide to exploit them. The term has also been used to discuss how people can use this opportunity to develop new products or services, launch new companies or industries, and create wealth. The entrepreneurial process is uncertain because opportunities can only be identified once they are exploited.

Entrepreneurs tend to show a positive bias to discover new possibilities and see unmet market needs, and risk-taking tendencies that make them more likely to exploit business opportunities.

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History

Historical usage

"Entrepreneur" ( Ã, ( listen ) ) is a French loan word. The word first appeared in the French dictionary Dictionnaire Universel de Commerce compiled by Jacques des Bruslons and published in 1723. Especially in England, the term "adventurer" is often used to denote the same meaning. The study of entrepreneurship reached back to work in the late 17th and early 18th centuries of the Irish-French economist Richard Cantillon, which became the basis of classical economics. Cantillon defines the first term in his Essai sur la Nature du Commerce en GÃÆ' Â © nÃÆ' Â © ral , or Essay on General Trade Nature , a book deemed by William Stanley Jevons "the cradle of political economy". Cantillon defines the term as a person who pays a price for a product and resells it for an uncertain price, "making decisions about obtaining and using resources while consequently acknowledging the risk of the company". Cantillon considers entrepreneurs as risk takers who deliberately allocate resources to take advantage of opportunities to maximize financial returns. Cantillon stresses the entrepreneur's willingness to take risks and face uncertainty, so he draws attention to the function of the entrepreneur and distinguishes between the functioning of employers and owners who provide money.

Jean-Baptiste Say also identifies entrepreneurs as drivers of economic development, emphasizing their role as one of the collecting factors of production that allocates resources from less to more productive fields. Both Say and Cantillon belong to a French school of thought and are known as physiocrats.

Back in medieval guild times in Germany, a craftsman needed a special permit to operate as an entrepreneur, a small proof of competence ( Kleiner BefÃÆ'¤higungsnachweis ), which limited the training of apprentices to artisans holding Meister certificates. The institute was introduced in 1908 after a period called freedom of trade ( Gewerbefreiheit , introduced in 1871) in the German Reich. However, proof of competence is not necessary to start a business. In 1935 and in 1953, greater proof of competence was introduced ( GroÃÆ'Ÿer BefÃÆ'¤higungsnachweis Kuhlenbeck ), which required the craftsmen to obtain a Meister internship training certificate before being allowed to establish a new business.

20th century

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. Although the French loan of the word "entrepreneur" originated in 1850, the term "entrepreneurship" was invented around the 1920s. According to Schumpeter, an entrepreneur is willing and able to turn a new idea or discovery into a successful innovation. Entrepreneurship uses what Schumpeter calls a "creative destruction storm" to replace overall or partially lower supply in different markets and industries, simultaneously creating new products and new business models, so that creative destruction is largely responsible responsible for long-term economic growth. The idea that entrepreneurship leads to economic growth is an interpretation of the residuals in the theory of endogenous growth and thus continues to be debated in the academic economy. An alternative description by Israeli Kirzner suggests that the majority of innovations may be additional enhancements such as replacing paper with plastics in the construction of straws that do not require special quality.

For Schumpeter, entrepreneurship produces new industries and new combinations of current inputs. Schumpeter's earliest example of this is the combination of the steam engine and then the current wagon-making technology to produce a horse-drawn carriage. In this case, innovation (ie car) is transformational, but does not require the development of dramatic new technology. It did not immediately replace the horse carriage, but in the gradual improvement of time reduced costs and improved technology, leading to the modern automotive industry. Despite Schumpeter's contribution at the beginning of the 20th century, traditional microeconomic theories do not formally consider entrepreneurs in their theoretical framework (rather than assuming that resources will find each other through the price system). In this treatment, the employer is an implied but not specific actor, consistent with the concept of entrepreneurship as an x-efficiency agent.

For Schumpeter, entrepreneurs are not at risk: the capitalist does it. Schumpeter believed that the balance was imperfect. Schumpeter (1934) suggests that continuous environmental change provides new information about optimal resource allocation to improve profitability. Some individuals acquire new information before others and re-incorporate resources to gain entrepreneurial advantage. Schumpeter argues that entrepreneurs shift the production possibilities curve to higher levels using innovation.

Initially, the economists made the first attempt to learn the concept of entrepreneurship in depth. Alfred Marshall views businessman as a multi-tasker capitalist and observes that in a truly competitive market equilibrium, there is no place for "entrepreneurs" as the creators of economic activity.

2000s

In the 2000s, entrepreneurship has been extended from its origin in nonprofit businesses to incorporate social entrepreneurship, where business objectives are sought alongside social, environmental or humanitarian goals and even the concept of political entrepreneurs. Entrepreneurship within an existing company or large organization has been referred to as intrapreneurship and can include enterprise businesses in which large subsidiary organizations are "spin-off".

Entrepreneurs are leaders who are willing to take risks and initiate, take advantage of market opportunities by planning, managing, and mobilizing resources, often by innovating to create new products or services or improve existing ones. In the 2000s, the term "entrepreneurship" has been extended to include a specific mindset that results in entrepreneurial initiatives, for example in the form of social entrepreneurship, political entrepreneurship or knowledge entrepreneurship.

According to Paul Reynolds, founder of Global Entrepreneurship Monitor, "by the time they reach their retirement, half of all workers in the United States may have an independent working period of one year or more; self-employment for six years or more.Participating in new business creations is a common activity among US workers during their career. " In recent years, entrepreneurship has been claimed as a key driver of economic growth both in the United States and Western Europe.

Entrepreneurial activity differs substantially depending on the type of organization and creativity involved. Entrepreneurship scale on a scale from solo, part-time projects to large-scale businesses involving teams and who can create more jobs. Many "high-value" entrepreneurial ventures seek venture capital or angel funds to raise capital to build and expand business. Many organizations exist to support entrepreneurial candidates, including special government agencies, business incubators (who may be profitable, nonprofit, or operated by colleges or universities), science parks and non-governmental organizations, covering a range of organizations including nonprofits, charities, foundations, and business advocacy groups (eg Chamber of Commerce). Starting in 2008, an annual "Global Entrepreneurship Week" event aimed at "exposing people to entrepreneurial benefits" and getting them "participating in entrepreneurship-related activities" was launched.

The relationship between small business and entrepreneurship

The term "entrepreneur" is often combined with the term "small business" or used interchangeably with this term. Although most entrepreneurial businesses start as small businesses, not all small businesses are entrepreneurs in the strict sense of the term. Many small businesses are single owner operations that are solely composed of owners - or they have a small number of employees - and many of these small businesses offer existing products, processes, or services and they do not target growth. In contrast, entrepreneurial enterprises offer innovative products, processes or services and entrepreneurs typically aim to increase the company by adding employees, seeking international sales, and so on, a process financed by venture capital and angel investment. Successful entrepreneurs have the ability to lead the business in a positive direction with proper planning, to adapt to changing environments and understand their own strengths and weaknesses.

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Entrepreneur type

Ethnic

The term "ethnic entrepreneurship" refers to entrepreneurial business owners belonging to racial or ethnic minorities in the United States and Europe. The long tradition of academic research explores the experiences and strategies of ethnic entrepreneurs as they seek to integrate economically into mainstream US or European societies. Classical cases include Jewish merchants and merchants in major cities in the United States in the 19th and early 20th centuries as well as Chinese and Japanese small business owners (restaurants, farmers, shop owners) on the West Coast. In 2010, ethnic entrepreneurship has been studied in the case of Cuban business owners in Miami, motel owners in India from US and Chinese business owners in Chinatown across the United States. While entrepreneurship offers these groups many opportunities for economic progress, entrepreneurship and business ownership in the United States remain unequally distributed along racial/ethnic lines. Despite the many success stories of Asian entrepreneurs, the latest statistical analysis of US census data shows that whites are more likely than Asians, Africans and Latin Americans to be entrepreneurs in prestigious and profitable industries.

Institutional

The American-born English economist, Edith Penrose, has highlighted the collective nature of entrepreneurship. He mentioned that in modern organizations, human resources need to be combined to capture and create business opportunities better. Sociologist Paul DiMaggio (1988: 14) has broadened this view to say that "new institutions arise when well-organized players with sufficient resources [institutional entrepreneurs] see in them the opportunity to realize the interests they greatly value." This idea has been widely applied.

Culture

According to Christopher Rea and Nicolai Volland, cultural entrepreneurship is "the practices of individual and collective agents characterized by the mobility between the cultural profession and the mode of cultural production", which refers to the activity and creative industry sector. In their book The Business of Culture (2015), Rea and Volland identify three types of cultural entrepreneurs: "cultural personality," defined as "individuals who build [d] their own brand of personal creativity as cultural authorities and exploit them to create and retain various cultural enterprises "; "tycoons", defined as "entrepreneurs who rally [d] great influence within the sphere of culture by forging synergies between their industrial, cultural, political, and philanthropic interests"; and "collective enterprises", organizations that may be involved in cultural production for profit or non-profit purposes.

Feminist

Feminist entrepreneurs are individuals who apply feminist values ​​and approaches through entrepreneurship, with the aim of improving the quality of life and welfare of girls and women. Many do so by creating "for women, by women" companies. Feminist entrepreneurs are motivated to enter the commercial market with a desire to create wealth and social change, based on the ethics of cooperation, equality and mutual respect.

Social

Social entrepreneurship is the use of start firms and other entrepreneurs to develop, fund and implement solutions to social, cultural, or environmental problems. This concept can be applied to organizations with different sizes, goals, and beliefs. Nonprofit entrepreneurs typically measure performance using business metrics such as earnings, revenues, and stock price increases, but social entrepreneurs are not-for-profit or mixed-for-profit organizations by generating positive "returns to society" and should therefore use different metrics. Social entrepreneurship usually tries for broader social, cultural, and environmental goals that are often associated with the voluntary sector in areas such as poverty alleviation, health care and community development. Sometimes, earnings-producing social companies can be established to support social or organizational goals but not as an end in itself. For example, an organization that aims to provide housing and employment for the homeless can operate a restaurant, both to raise money and to provide jobs for the homeless.

Nascent

A newborn entrepreneur is someone in the process of building a business. In this observation, newborn entrepreneurs can be seen as pursuing opportunities, namely the possibility of introducing new services or products, serving new markets, or developing more efficient production methods. in a favorable way. But before such endeavors are truly established, the opportunity is just a business idea. In other words, chances are pursued that is perceptual in nature, which is sustained by the personal confidence of newborn entrepreneurs about the feasibility of the business outcomes to be achieved by these newborn entrepreneurs. Prescience and its value can not be confirmed ex ante but only gradually, in the context of the actions taken by new entrepreneurs to build the business. Ultimately, these actions can lead to pathways that newborn entrepreneurs deem to be no longer attractive or worthy, or lead to the emergence of business. In this sense, over time, a newborn venture may move in the direction of discontinuing or succeeding successfully as an operating entity.

The difference between beginner entrepreneurs, series, and portfolios is an example of categorization based on behavior. Another example is the (related) study by, on a sequence of start-up events. Newborn entrepreneurs who emphasize a series of activities involved in the emergence of new ventures, rather than solitary actions exploit opportunities. Such research will help to separate entrepreneurial action into sub-activities and explain the relationships between activities, between activities (or sequence of activities) and individual motivations to shape opportunities confidence, and between activities (or sequences of activities). ) and the knowledge necessary to form a confidence of opportunity. With this research, scholars will be able to begin to build a micro foundation theory of entrepreneurial action.

Scholars interested in newborn entrepreneurship tend to focus less on an act of exploitation of opportunities and more on a series of actions in the emergence of new ventures ,,. Indeed, newborn entrepreneurs engage in many entrepreneurial activities, including actions that make their business more concrete for themselves and others. For example, new entrepreneurs often seek and purchase facilities and equipment; seek and obtain financial support, establish legal entities, organize teams; and dedicate all their time and energy to their business

Project-based

The project entrepreneur is an individual involved in repeating assembly or temporary organization creation. This is an organization that has a limited life span aimed at producing a single goal or goal and is dissolved quickly when the project ends. Industries where project-based companies are widespread include: sound recording, film production, software development, television production, new media and construction. What makes project entrepreneurs different from the theoretical point of view is that they have to "pull back" these temporary efforts and modify them to fit the needs of emerging new project opportunities. A project entrepreneur who uses a particular approach and team for a single project may have to modify the business or team model for the next project.

Project employers are repeatedly exposed to the problems and tasks typical of the entrepreneurial process. Indeed, project entrepreneurs face two important challenges that always characterize the creation of new ventures: finding the right opportunity to launch projects and assembling the most appropriate team to take advantage of those opportunities. Resolving the first challenge requires the project entrepreneur to access the various information needed to seize new investment opportunities. Resolving the second challenge requires collaborative team assembly to be consistent with the project's specific challenges and should work immediately to mitigate performance risks that may be affected. Another type of entrepreneurship project involves entrepreneurs working with business students to get analytical work done on their ideas.

Millennium

The term "entrepreneurial millennium" refers to business owners affiliated with generations who grew up using digital technology and mass media - Baby Boomers products, people born during the 1980s and early 1990s. Also known as Generation Y, the business owner is equipped with new technological knowledge and new business models and has a strong understanding of its business applications. There are many breakthrough businesses coming from millennium entrepreneurs such as Mark Zuckerberg, who created Facebook. Irrespective of the expectations of millenial success, there are recent studies that have proven this to be fine. Comparisons between self-employed millennials and non-entrepreneurs show that the latter is higher. The reason is because they grow in different generations and attitudes from their parents. Some barriers to entry for entrepreneurs are the economy, debt from schools and regulatory compliance challenges.

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Entrepreneurship Behavior

Employers are generally seen as innovators - the designer of new ideas and business processes. Management skills and strong team-building skills are often regarded as important leadership attributes for successful entrepreneurs. Political economist Robert Reich considers leadership, management skills and team building to be an important quality of an entrepreneur.

Uncertainty of perception and risk taking

Theorists Frank Knight and Peter Drucker define entrepreneurship in terms of risk taking. Employers are willing to put their careers and financial security on track and take risks on behalf of ideas, spending time and capital on uncertain ventures. However, employers often do not believe that they have taken a large amount of risk because they do not see the level of uncertainty as high as everyone else. Knight classifies three types of uncertainty:

• Risk, which can be measured statistically (such as the possibility of drawing a red ball from a bottle containing five red orbs and five white balls)
• Ambiguity, which is difficult to measure statistically (such as the possibility of drawing a red ball from a jar containing five red orbs but an unknown number of white balls)
• The true uncertainty or uncertainty of Knightian, which can not be estimated or predicted statistically (such as the possibility of drawing a red ball from a jar whose contents, in terms of the number of colored balls, is completely unknown)

Entrepreneurship is often associated with actual uncertainty, especially when it involves the creation of new goods or services, for markets that did not exist before, rather than when an attempt creates a gradual increase for existing products or services. A 2014 study at ETH ZÃÆ'¼rich found that compared to typical managers, employers demonstrated higher decision-making efficiency and stronger activation in frontopolar cortex (FPC) areas previously associated with explorative options.

Coachability "and coaching take

The ability of entrepreneurs to cooperate with and receive advice from early investors and other partners (ie, their ability to nurture) has long been considered an important factor in entrepreneurial success. At the same time, economists argue that employers should not only act on all the advice given to them, even when the advice comes from well-informed sources, because entrepreneurs have far deeper and richer local knowledge about their own company than outsiders. Indeed, the size of the ability to be guided does not really predict the success of entrepreneurship (eg measured as success in subsequent funding rounds, acquisitions, pivots, and corporate survival). The study also showed that older and larger founding teams, perhaps those with more subject skills, were less trained than younger and smaller founder teams.

Strategy

Strategies that employers can use include:

• New product, service, or process innovation
• Continuous process improvement (CPI)
• Explore new business models
• Technology usage
• Use of business intelligence
• The use of economic strategies
• Product and service development in the future
• Optimized talent management

Designing individual connections/opportunities

According to Shane and Venkataraman, entrepreneurship consists of "enterprising individuals" and "entrepreneurial opportunities", so researchers should study the nature of individuals who identify opportunities when others are not, the opportunities themselves and the relationships between individuals and opportunities. On the other hand, Reynolds et al. argues that individuals are motivated to engage in entrepreneurial endeavors driven primarily by needs or opportunities, ie individuals pursuing entrepreneurship primarily because of the necessities of life, or because they identify business opportunities that meet their needs for achievement. For example, higher economic inequalities tend to increase the level of entrepreneurship at the individual level, suggesting that most entrepreneurial behaviors are based on needs rather than opportunities.

Opportunity and bias perception

The ability of entrepreneurs to innovate is related to innate traits, including extroversion and the tendency to take risks. According to Joseph Schumpeter, the ability to innovate, introduce new technologies, improve efficiency and productivity, or produce new products or services, is a hallmark of entrepreneurs. One study has found that certain genes that affect personality can affect the income of self-employed people. Some people may be able to use "innate ability" or quasi-statistics to gauge public opinion and market demand for new products or services. Employers tend to have the ability to see unmet market needs and underserved markets. While some entrepreneurs think they can feel and think about what others think, the mass media plays an important role in shaping the views and demands. Ramoglou argues that entrepreneurs are not so different and are basically a poor conceptualization of "non-entrepreneurs" who retain the praise portraits of "entrepreneurs" as innovators or outstanding leaders. Entrepreneurs are often overconfident, showing the illusion of control, when they open/expand business or new products/services.

Style

Differences in entrepreneurial organizations often reflect some of the heterogeneous identities of its founders. Fauchart and Gruber have classified entrepreneurs into three main types: Darwin, communitarian, and missionary. These types of entrepreneurs differ in fundamental ways in their self-image, social motivation and new corporate creation patterns.

Communications

Entrepreneurs need to practice effective communication both within their companies and with partners and external investors to launch and grow businesses and enable them to survive. An entrepreneur needs a communication system that connects his company's staff and connects the company with outside companies and clients. Entrepreneurs must be charismatic leaders, so they can communicate the vision effectively to their team and help create a strong team. Communicating a vision to followers may be the most important act of a transformational leader. Attractive vision gives employees a sense of purpose and encourages commitment. According to Baum et al. and Kouzes and Posner, the vision must be communicated through written statements and through direct communication. Entrepreneurs leaders must speak and listen to articulate their visions to others.

Communication is essential in the role of entrepreneurship as it allows leaders to convince potential investors, partners and employees about business feasibility. Employers need to communicate effectively to shareholders. Nonverbal elements in speech such as tone of voice, look in the sender's eyes, body language, hand gestures and emotional state are also important communication tools. The Communication Communication Theories argue that along communications people will attempt to accommodate or adapt their speaking methods to others. Face Negotiation Theory illustrates how people from different cultures manage conflict negotiations to maintain a "face". Hugh Rank's communication model "intensify and shrink" can be used by entrepreneurs who develop new products or services. Rank argues that entrepreneurs should be able to increase the advantages of their new products or services and minimize the loss to persuade others to support their efforts.

Links to sea piracy

Research from 2014 found a link between entrepreneurship and historic sea piracy. In this context, claims are made for a non-moral approach to view the history of piracy as a source of inspiration for entrepreneurship education as well as for research in entrepreneurship and business model generation.

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Psychological makeup

Stanford University economist Edward Lazear found in a 2005 study that variations in education and work experience are the most important traits that differentiate entrepreneurs from non-entrepreneurs. A 2013 study by Uschi Backes-Gellner of the University of Zurich and Petra Moog of the University of Siegen in Germany found that diverse social networks are also important in distinguishing students who later became entrepreneurs.

Studies show that psychological trends for male and female entrepreneurs are more similar than different. Empirical studies show that women entrepreneurs have strong negotiation skills and consensus-building abilities. Asa Hansson, who saw empirical evidence from Sweden, found that the possibility of becoming an entrepreneur decreases with age, but increases with age for men. He also found that marriage increases the likelihood that a person becomes an entrepreneur.

Jesper SÃÆ'¸rensen writes that significant influence on the decision to become an entrepreneur is a co-worker and social composition at work. SÃÆ'¸rensen found a correlation between working with ex-entrepreneurs and how often these people became entrepreneurs themselves, compared with those who did not work with employers. Social composition can affect entrepreneurship in friends by showing the possibilities for success, stimulating "He can do it, why can not I?" attitude. As SÃÆ'¸rensen states: "When you meet someone else who has gone out on his own, it does not seem crazy".

Entrepreneurs can also be encouraged for entrepreneurship by past experience. If they encounter many work stoppages or have been unemployed in the past, they may become entrepreneurs improving Per Cattell's personality framework, both personality traits and thoroughgoing attitudes by psychologists. However, in the case of entrepreneurial research, these ideas are also used by academics, but vaguely. According to Cattell, personality is a system related to the environment and further adds that the system seeks an explanation for complex transactions carried out by both - traits and attitudes. This is because both bring about change and growth in a person. Personality is what informs individuals what to do when faced with a particular situation. A person's response is triggered by his personality and the situation at hand.

Innovative entrepreneurs may be more likely to experience what psychologist Mihaly Csikszentmihalyi calls "flow". "Flow" occurs when one forgets about the outside world because it is thoroughly involved in the process or activity. Csikszentmihalyi suggests that breakthrough innovations tend to occur in the hands of individuals in the country. Other studies have concluded that strong internal motivation is an essential element for innovation breakthroughs. The flow can be compared to the concept of normalization of Maria Montessori, a state that includes a child's capacity for an intense and long period of intense concentration. Csikszentmihalyi recognizes that Montessori's environment offers opportunities for children to flow. Thus the quality and type of early education can affect entrepreneurial skills.

Research on high-risk settings such as oil platforms, investment banking, medical operations, aircraft pilots and nuclear power plants have a distrust associated with failure avoidance. When non-routine strategies are needed, unbelievers will perform better when a routine strategy is needed by people who believe perform better. The research was extended to entrepreneurial companies by Gudmundsson and Lechner. They argue that in entrepreneurship firms the threat of failure always comes in the likes of non-routine situations in high-risk settings. They found that unbelieving business firms were more likely to survive than the optimistic or over-confident businessman. The reason is that unbelieving entrepreneurs will emphasize the avoidance of failure through sensible selection of tasks and more analysis. Kets de Vries has shown that unbelieving entrepreneurs are more wary about their external environment. He concluded that less confident entrepreneurs tend to reduce negative events and are more likely to use control mechanisms. Similarly, Gudmundsson and Lechner find that mistrust leads to higher precautions and therefore increases the likelihood of survival of entrepreneurial enterprises.

Researchers Schoon and Duckworth completed a study in 2012 that could potentially help identify who might become entrepreneurs at an early age. They decide that the best steps to identify young entrepreneurs are family and social status, parent role modeling, entrepreneurship competence at age 10, academic achievement at age 10, general independence, social skills, entrepreneurial intentions and unemployment experience.

Strategic

Some experts have built an operational definition of a more specific subcategory called "Strategic Entrepreneurship". Closely related to the principles of strategic management, this entrepreneurial form is "concerned with growth, creating value for customers and then creating wealth for owners". A 2011 article for the Academy of Management provides an "Input-Process-Output" model three steps from strategic entrepreneurship. The three-step model requires the collection of different resources, the process of masterminding them in the necessary ways and the creation of the next competitive advantage, customer value, wealth, and other benefits. Through the use of appropriate strategic management/leadership techniques and the application of risky entrepreneurial thinking, strategic entrepreneurs are therefore able to align resources to create value and wealth.

Leadership

Leadership in entrepreneurship can be defined as "a process of social influence in which one person can ask for help and support of others in the accomplishment of common tasks" in "people who innovate, finance and business acumen in an effort to turn innovation into economic goods. It not only refers to entrepreneurial action as managing or starting a business, but how one can do it with this social process, or leadership skills. Entrepreneurship itself can be defined as "the process by which individuals, teams, or organizations identify and pursue entrepreneurial opportunities without being immediately constrained by the resources they currently control." An entrepreneur usually has a mindset that seeks potential opportunities during an uncertain time. An entrepreneur must have the skills or leadership qualities to see potential opportunities and act on them. In essence, an entrepreneur is a decision maker. Such decisions often affect the organization as a whole, representing their leadership among the organizations.

With the growth of global markets and increased use of technology throughout the industry, the core of entrepreneurship and decision-making has been an ongoing process rather than a separate incident. It becomes a knowledge management that "identifies and leverages intellectual assets" for organizations to "build on past experiences and create new mechanisms for exchanging and creating knowledge". This belief refers to past experiences of leaders who may prove useful. It is a common mantra for a person to learn from their past mistakes, so leaders must take advantage of their failures to their advantage. This is how one can take their experience as a leader to use in the core of entrepreneurial decision making.

Global leadership

The majority of the scientific research conducted on this topic comes from North America. Words such as "leadership" and "entrepreneurship" do not always translate well into other cultures and languages. For example, in North America a leader is often considered charismatic, but German culture dislikes such charisma because of the charisma of Nazi leader Adolph Hitler. Other cultures, like some European countries, see the term "leader" negatively, like France. The participatory leadership style driven in the United States is considered rude in many other parts of the world because of differences in power distance. Many Asian and Middle Eastern countries have no "open door" policy for subordinates and will never approach their manager/boss informally. For such countries, the authoritarian approach to management and leadership is more customary.

Despite cultural differences, successes and failures of entrepreneurs can be traced to how leaders adapt to local conditions. With an increasingly global business environment, a successful leader must be able to adapt and have an insight into other cultures. In response to the environment, the company's vision becomes transnational, to enable organizations to operate in or provide services/goods for other cultures.

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Entrepreneurship and Education Training

Michelacci and Schivardi are a pair of researchers who believe that identifying and comparing the relationship between an entrepreneur's income and education level will determine the level and success rate. Their studies focus on two levels of education, a bachelor's degree and a post-graduate degree. While Michelacci and Schivardi did not specifically define characteristics or traits for successful entrepreneurs, they believe that there is a direct link between education and success, noting that having college knowledge does not contribute to progress in the workforce.

Michelacci and Schivardi said there has been an increasing number of self-employed people with baccalaureate degrees. However, their findings also show that those who work alone and have a college degree remain consistent all the time around 33 percent. They briefly mentioned well-known entrepreneurs like Steve Jobs and Mark Zuckerberg who dropped out of college, but they called all these cases extraordinary because this is a pattern that many entrepreneurs view formal education as expensive, mainly because of the time that needs to be spent on me. Michelacci and Schivardi believe that in order for an individual to achieve full success they must have an education outside of secondary school. Their research shows that the higher the level of education the greater the success. The reason is that colleges provide people with additional skills that can be used in their business and operate at a higher level than someone who just "runs" it.

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Resources and Financing

Entrepreneurship resources

An entrepreneurial resource is a company's assets that have the ability to create economic value. Economic value creates a tangible and intangible source regarded as an entrepreneurial resource. Their economic value generates activities or services through mobilization by entrepreneurs. Entrepreneurial resources can be divided into two basic categories: tangible and intangible resources.

Tangible resources are material sources such as equipment, buildings, furniture, land, vehicles, machinery, stock, cash, bonds and inventories that are physically and quantifiable. In contrast, intangible resources are nonphysical or more challenging to be identified and evaluated, and they have more value that creates capacity such as human resources including skills and experience in a particular field, corporate organizational structure, brand name, reputation, entrepreneurial network that contribute on the promotion and financial support, knowledge, intellectual property including copyrights, trademarks and patents.

Bootstrap

At least from the beginning, entrepreneurs often "finance their start-up bootstrap" rather than looking for external investors right from the start. One of the reasons that some entrepreneurs prefer "bootstrap" is that obtaining equity financing requires the entrepreneur to grant shares of ownership to the investor. If start-ups become successful in the future, these initial equity financing transactions can provide livelihood for investors and huge losses for the entrepreneur. If investors have significant shares in the company, they may also be able to influence the company's strategy, the choice of chief executive officer (CEO) and other important decisions. This is often problematic because investors and founders may have different incentives about the company's long-term goals. An investor will generally aim for a profitable exit and therefore promote the company's high valuation sales or IPO to sell their shares. While entrepreneurs may have philanthropic intentions as their main driving force. These soft values ​​may not correspond to the short-term pressures on the annual and quarterly profits that the public company often owns from its owners.

A consensus definition of bootstrapping sees it as "a collection of methods used to minimize the amount of external debt and equity financing required from banks and investors". Most businesses require less than $ 10,000 to launch, which means that personal savings are most often used to get started. In addition, bootstrap entrepreneurs often incur personal credit card debt, but they can also take advantage of various methods. While bootstrapping involves an increase in personal financial risk for the entrepreneur, the absence of other stakeholders gives the entrepreneur more freedom to develop the company. Many successful companies, including Dell Computer and Facebook, start with bootstrapping.

Bootstrapping methods include:

• Owner financing, including savings, personal loans, and credit card debt
• Working capital management that minimizes receivables
• Shared use, such as reducing overhead with coworking or using independent contractors
• Increase debt by delaying payments, or rent rather than purchase equipment
• Lean manufacturing strategies such as minimizing inventory and lean startup to reduce product development costs
• Financial subsidy

Additional financing

Many businesses require more capital than can be provided by the owner himself. In this case, various options are available including a variety of private and public equity, debt and grants. Private equity options include:

• Startup accelerator
• Angels' Investors
• Venture capital investors
• Crowdfunding Equity
• Hedge funds

Open debt options for employers include:

• Loans from banks, financial technology companies, and economic development organizations
• The credit line is also from banks and financial technology companies
• Microcredit is also known as microloans
• Merchant advances
• Income-based financing

Open grant options for entrepreneurs include:

• Equity-free accelerator
• Business plan/business field competition for college entrepreneurs and others
• Small Business Innovation Research Grant from the US government

Tax effects

Entrepreneurs are faced with liquidity constraints and often lack the credit needed to borrow large amounts of money to finance their businesses. Because of this, a lot of research has been done on tax effects on entrepreneurs. The studies fall into two camps: the first camp finds that taxes help and the second argue that taxes are detrimental to entrepreneurship.

Cesaire Assah Meh finds that corporate taxes create incentives to become entrepreneurs to avoid double taxation. Donald Bruce and John Deskins find the literature that shows that higher corporate tax rates can reduce the share of state entrepreneurs. They also found that countries with inheritance or estate taxes tend to have lower levels of entrepreneurship when using tax-based measures. However, other studies have found that countries with more progressive personal income taxes have a higher percentage of single owners in their workforce. In the end, many studies have found that the effect of tax on the probability of being a small entrepreneur. Donald Bruce and Mohammed Mohsin found that it required a 50 percentage point reduction in the highest tax rate to produce a one percent change in entrepreneurial activity.

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Predictors of success

Source of the article : Wikipedia