The chapter continues to define and discuss ten specific myths associated with entrepreneurship. The myths are present because of the lack of research within this particular field. Also, the technology within this field is becoming more advanced and more widely known.
An individual’s understanding may be increased by many approaches. Two specific approaches are “macro” and “micro” views. Within each view, there are three “schools of thought.” According to the chapter, the “schools of thought” are considered to be a foundation for entrepreneurial theory. Also, there are the process approaches: “integrative approach.”
The Integrative approach is built around the concept of input to the entrepreneurial process and outcomes from the entrepreneurial process, which can determine the entrepreneurial intensity. Entrepreneurial assessment approach involves qualitative, quantitative, strategic, and ethical assessments in regards to the entrepreneur, the venture, and the environment. The multidimensional approach provides fewer distinct categories, giving it a more specific or detailed process approach to entrepreneurship. The approach is divided into the individual, the environment, the organization, and the process.
Before the chapter concludes with the summary, the key factors of entrepreneurship, entrepreneur, and entrepreneurial management are briefly discussed.
ENTREPRENEURSHIP: AN EVOLVING CONCEPT
I.The Evolution of Entrepreneurship A.Taken from the French “entre prendre,” means “to undertake.” B.An entrepreneur is an innovator or developer who recognizes and seizes opportunities; converts those opportunities into workable/marketable ideas; adds value through time, effort, money, or skills; assumes the risks of the competitive marketplace to implement these ideas; and realizes the rewards from these efforts.
Briefly describe the evolution of the term “entrepreneurship.” The word “entrepreneur” is derived from the French “entre prendre,” which means “to undertake.” Thus, it began as a concept to identify one who undertakes to organize, manage, and assume the risks of business. The risk-bearing part dates back to the eighteenth century when French economist Richard Cantillon matched it with the term “entrepreneur.” Economics and entrepreneurship remained closely tied through the years as noted economists such as Jean-Baptiste Say (1803) and Joseph Schumpeter (1934) continued to write about entrepreneurship and its impact on economic development.
Over the years various definitions have been used in an attempt to describe entrepreneurship. The twentieth century has linked the term with free enterprise and capitalism, while three specific activities have been recognized that entrepreneurs perform: serving as an agent for change; providing creative innovative ideas for the enterprise; and helping business grow and become profitable.
ADDITIONAL EXPERIENTIAL EXERCISE
“An Actual Start-up”
The students will start up an actual business. Divide them into groups of four. Check with the manager of a mall to see if one Saturday or Sunday he will permit the groups to set up a little contest among themselves. The team that sells the most product and has the most profit after expenses will be the winner and will get some bonus points or a free pizza from you. The product should be perishable so that if the students produce too many items, not only will it hurt their profits but they will have to carefully estimate the quantity to supply demand.
A mall will be a good place to have the contest because students will have to spend a day or two there to get a feel for where the most traffic will be. Their final profits will be affected if they do not know where to set up. It will take some effort on their part if they want to win and they will have to research their product to get a feel for supply and demand. They will have to find the cheapest way to produce and advertise their product.
This will take some research but it can be a lot of fun. It can be something as simple as the proverbial lemonade stand, however, it will give them a small taste of what it is really like to make decisions about their own business, which in the long run can either make them money or bankrupt the company.