ENTREPRENEURSHIP AND ITS FUTURE IMPORTANCE

ENTREPRENEURSHIP AND THE FUTURE

1. ENTREPRENEURSHIP AND THE FUTURE I N the new decade, the ideas, talents, skills, and knowledge that promote entrepreneurship are obvious in people all around the globe, but especially in today’s generation . This new direction is a change from previous times when economic growth lean to favor more established businesspersons from the corporate world . But the face of the world economy has shifted, and young people today are well suited for entrepreneurial activity.

2. Entrepreneurship Entrepreneurship  is the creation or extraction of value .  With this definition, entrepreneurship is viewed as change, generally involving in risk taking activities beyond what is normally face in starting a business, which may include other values than simply economic ones. More narrow definitions have described entrepreneurship as: the process of designing, launching and running a new business, which is often initially a  small business , or as the "capacity and willingness to develop, organize and manage a business venture along with any of its risks to make a  profit

3. Definitions find the following common elements and characteristics: • Creativity and innovation • Resource identification, acquisition, and marshaling • Economic organization • Opportunity for gain (or increase) under risk and uncertainty

4. Creation and Innovation The term creation implies a founding and an origin. Therefore the purchase of an existing firm or its transfer to new owners does not represent entrepreneurship. It is rare for an organization to change ownership without a change in its management and resource configuration. H owever , the degree of change and innovation determines whether entrepreneurship is present t o see how large a change is needed .

5. A new product or service offered? • A new method or technology employed? • A new market targeted and opened? • A new source of supply of raw materials and resources used? • A new form of industrial organization created?

6. Control and Deployment of Resources This theoretical framework originally derives from the viewpoint of a large corporation . The resource-based theory is the most appropriate to ``understand new venture creation`` because it best describes how entrepreneurs themselves build their businesses from the resources and capabilities they currently possess or can realistically acquire``.

7. Economic Organization The term economic organization means an organization whose purpose is to allocate scarce resources. An economic organization can be: a firm , a business unit within a firm, a network of independent organizations , a social network, or a not-for-profit organization (NPO). Though it may seem impossible, even governments can create entrepreneurial organizations under the right conditions.

8. Economic Organization The business organization can, of course, pursue gain and growth as its motivations. In fact, some firms use both profit and size as their main objectives. Other businesses do not seek growth, which distinguishes entrepreneurial firms from small businesses.

9. Risk and Uncertainty Entrepreneurship exists under conditions of risk and uncertainty. The two terms are not the same. Risk refers to the variability of outcomes (or returns); if there is no risk, the returns are certain. A firm operating in a risk-free environment would continue to expand forever , because a negative outcome could not occur .

10. Risk and Uncertainty Uncertainty refers to the confidence entrepreneurs have in their estimates of how the world works—their understanding of the causes and effects in the environment. If there is no uncertainty, the environment and future can be perfectly known. If the future can be known, then everyone can know it (at least for a price), and it will not be a source of lasting profit for anyone.

11. 1-The ambitious entrepreneurs of today are technologically advanced as: They are comfortable with new technologies and are not fearful of change and the radical shifts that new technology can bring. Younger people are at home with computers and all sorts of consumer electronics . Over 80 percent of homes with children have computers and access to the Internet .

12. 2-It’s a great time to be an entrepreneur,” especially an Internet one. Compared to ten to fifteen years ago, hardware is 100 times cheaper, infrastructure software is free , there is easy access to global labor markets, and SEM (search engine marketing) has changed distribution and selling tactics .

13. 3-This generation is: passionate and love taking challenges. They welcome change and embrace the idea of progress. They have seen the improvement of information technology , new medical and biotech processes and products, and radical changes in the way people communicate and work. They believe that continued improvement and even revolutionary change await them in the future .

14. 4-They are independent. More and more people starting out in professional business careers consider themselves free agents. They have portable skills and will take them wherever they can do the most good or make the most money.

15. How Does the New Entrepreneurship Add Up? The latest business trends are based more on entrepreneurship and business start-ups for younger people . Many new ventures will be technology based. The traditional career path may become a uncommon. Today’s younger people are more entrepreneurial than those of any previous generation. More and more people are striking out on their own.

16. How Does the New Entrepreneurship Add Up? According to the Opinion Research Council, 54 percent of 18- to 24-year-olds are highly interested in starting a business , compared with 36 percent of 35- to 64-year-olds . Today’s students will take us into the future and will shape the new millennium. The spirit of entrepreneurship—the notion of human progress, development, achievement, and change—motivates and energizes people.

17. How Does the New Entrepreneurship Add Up? The spirit of entrepreneurship — the notion of human progress, development , achievement, change—motivates energizes people.

18. Innovations in the way we work and play, travel and eat, start our families, and raise our children all create opportunities for entrepreneurs to build businesses and organizations that will exploit new technology and trends. We can also say that entrepreneurship is a self-perpetuating phenomenon .

19. For example, Hong Kong is often cited as an example of a very entrepreneurial place . Even after the handover of Hong Kong to the mainland Chinese in 1997, it has remained entrepreneurial. However , most of western and central Europe has not been entrepreneurial throughout history and many years of government programs designed to correct this have not proved effective.

20. In the United States, we have vast and growing entrepreneurial resources, as demonstrated by the tremendous increase in supply and demand for entrepreneurship classes and programs on campus.