Professional Documents
Culture Documents
1.1 Introduction
do
not
exist
before
and
it
involves
complex
human
thinking
entrepreneurship
is
materialistic.
researchers
observe
As
artifacts
result,
and
some
objective
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So the entrepreneurial
entrepreneurs
have
been
considered
as
the
critical
Page 2
entrepreneurship
entrepreneurship and
management
Explain the rewards of entrepreneurship
Discuss the popular myths about entrepreneurship
Discuss the different schools of entrepreneurial thoughts
Explain the significance of entrepreneurship and discuss why study
entrepreneurship
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1.3
Evolution
of
entrepreneurship
from
the
social
science perspective
The social sciences have contributed not only to
the theoretical development of entrepreneurship
but
also
to
entrepreneurship
as
practical
enterprise.
It should be emphasized that quite a few of the insights that the
social sciences have already generated can be more or less
translated into what is known as entrepreneurship; however, it is
important to figure out how to extract practical knowledge about
entrepreneurship from existing social science literature which would
represent a useful exercise for
to
establish
the
theoretical
foundation
to
study
entrepreneurship.
The Contribution of
Economics
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the
formation
of
an
organization
for
commercial
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new
complement
theory
Walras
of
theory
economics
of
to
static
Joseph Schumpeter
is interdisciplinary in nature.
Despite his multidisciplinary approach, he never produced concrete
guidelines for how an entrepreneur should behave. However he
pointed out that while ordinary economic behavior is more or less
automatic in nature, the entrepreneur always has to think very
carefully about what action to take since he or she is involved in
doing some thing that is fundamentally new. According to him
whenever you do something new, you do not know how to proceedand are in extra need of practical guidelines.
He described entrepreneurship as a force of creative destruction
whereby, established ways of doing things are destroyed by the
creation of new and better ways to get things done. In his view,
Entrepreneurship
is
process
and
entrepreneurs
are
innovators.
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ii.
one
be founded upon a
iv.
v.
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desire
for
power
and
what
ultimately
entrepreneur
motivates
according
to
Schumpeter.
It should also finally be mentioned that a large number of
contemporary
research
on
innovation
has
been
inspired
by
Schumpeters ideas. Scholars from a variety of fields have pickedup one or more ideas of Schumpeters works and incorporated them
into their own analysis.
Contribution of Social Scientists other than Economists
Many scholarly works on entrepreneurship can be found over the
years by social scientists other than economists, which include
those from sociology, anthropology and psychology.
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of
charisma
may
not
be
identical
to
his
theory
of
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entrepreneurship
economic
development.
different
values
and
He
affect
the
level
enquires
of
how
entrepreneurial
Ethnic minorities
ventures.
According
to
Burt,
entrepreneurial
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Contribution of psychology
Most studies on entrepreneurship have
been carried out within the field of
psychology than in either sociology or
mainstream economics.
Psychological study on entrepreneurship
mainly
focuses
on
identifying
the
entrepreneurial personality.
It is possible to divide the psychological studies on entrepreneurship
into two groups: one where the main goal is to isolate the
entrepreneurial personality; and another which is more socialpsychological
in
nature
and
where
the
personality
of
the
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possibility
for
producing
new
commodity
or
perspective
entrepreneurship
on
emerges
entrepreneurship.
when
resources
According
are
to
redirected
him
to
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However,
Ronstadt
recent
definition
captures
its
by
Robert
essence.
by
individuals
who
assume
the
Robert Ronstadt
The product or service itself may or may not be new or unique but value
must somehow be infused by the entrepreneur by securing and allocating
the necessary skills and resources.
and
networks
plays
an
important
role
(Kodithuwakku, 1997).
Further reading:
The Promise of Entrepreneurship as a Field of Research by
Shane & Venkataraman
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Who is an entrepreneur?
John
Hornaday
developed
complete
list
of
entrepreneurial traits
Characteristics of Successful Entrepreneurs
1. Self- confident and has self determination
2. Optimistic
3. Energetic and hard-working
4. Able to take calculate risk
5. Creative, and need to achieve
6. Respond positively to challenges
7. Dynamic leader
8. Flexible and able to adapt
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9. Responsive to suggestions
10. Knowledgeable of markets
11. Take initiative
12. Able to get along well with others
13. Independent minded
14. Sensitive with foresight
15. All-around knowledge
16. Responsive to criticism
Terms entrepreneurs and owner-managers are often used to
describe some body who is engaged in the management of small
business, and they are sometimes interchanged; anyone who starts
up in business is labeled an entrepreneur, but these terms have
different
meanings.
'entrepreneurship'
Yet
are
the
terms
inextricably
linked
'entrepreneur'
to
small
and
business
development;
it
exhibits
inside
or
outside
extent.
opportunity
Accordingly
driven
and
the
entrepreneurship
management
is
more
is
more
resource
and
conservation driven.
Entrepreneurial skill is defined as ability to perceive and creating
opportunities and extracting values through translating them into a
set of potential opportunities via mobilizing resources. Managerial
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Activity 01:
In your own words, explain what an entrepreneurship is. Write
an article in about 300 words.
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enjoy
being
the
boss,
and
attending
various
meetings.
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are
number
of
myths
that
have
arisen
about
meets
opportunity
is
an
equally
It
is
true
that
entrepreneurs
prefer
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works
have
presented
checklists
of
entrepreneurs
established
acquire
networks
with
needed
other
capital
through
organizations.
their
Therefore,
BBA 221
CDCE- compared
University of
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their career
toPeradeniya
others. Write an article in about
300 words.
Macro
View
Micro
View
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Macro View
The macro view of entrepreneurship presents a
broad array of factors that relate to performance of
entrepreneurial venture.
These factors are external, some time beyond the
control of the individual entrepreneurs for which
they exhibit a strong external locus of control.
minority
experiences,
global
environment
etc.
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Micro View
Micro view of entrepreneurship examines the
factors that are specific to entrepreneurship and
are part of the internal locus of control.
The potential entrepreneur has the ability, control, to direct or
adjust the outcome of each major influence in this view.
Entrepreneurial trait school of thought: Many
works on
entrepreneurship
identify
successful
entrepreneurship.
For
the
common
example,
traits
for
achievement,
creativity,
sources,
the
development
of
concepts,
and
the
Formulation
school
of
thought:
This
approach
BBA 221
markets,
unique
people,
unique
products,
or
unique
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1.1. Summary
Entrepreneurship like other social science subjects is difficult to define
as the field is continually evolving. Therefore, this introductory lesson
examined the multidisciplinary nature of entrepreneurship from the
views of social scientists, providing a foundation for further study of
this dynamic and evolving concept. It also discussed the definition,
rewards
for
entrepreneurship,
and
popular
myths
on
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