Professional Documents
Culture Documents
For Frank H. Knigh ( 1967 ) and Peter Drucker ( 1970 ) entrepreneurship is about
taking risk. The behaviour of the entrepreneur reflects a kind of person willing to put his
or her career and financial security on the line and take risks in the name of an idea,
spending much time as well as capital on an uncertain venture. Still another view of
entrepreneurship is that it is true the process of discovering, evaluating and exploiting
opportunities, which go on to reify themselves in the form of new business ventures. In
this model an entrepreneur could be defined as “someone who acts with ambition beyond
that supportable by the resources currently under his control, in relentless pursuit of
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opportunity” ( a definition common entrepreneurship professors Howard Stevenson and
Jeffry Timmons ). Pinchot ( 1985 ) coined the term Intrapreneurship to describe
entrepreneurial-like activities inside organization and government. The concept is
commonly referred to as Corporate Entrepreneurship. The place of the disharmony-
creating idiosyncratic entrepreneur in traditional economic theory ( which describes many
efficiency-based ratios assuming uniform outputs ) presents theoretic quandaries. William
Baumal has added greatly to this area of economic theory and was recently honored for it
at the 2006 annual meeting of the American Economist Association. ( The economist,
March,2006,pp 67 ). Entrepreneurship is widely regarded as an intergral player in the
business culture of American life and particularly as an engine for job creation and
growth. Robert Sobel published The Entrepreneurs : Explorations Within the American
Business Tradition in 1974.
Entrepreneurs have many of the same character traits as leaders. Similarly to the
early great man theories of leadership; however trait-based theories of entrepreneurship
are increasingly being called into question. Entrepreneurs are often contrasted with
managers and administrators who are said to be more methodical and less prone to risk-
taking. Although such person-centric models of entrepreneurship have shown to be of
questionable validity, a vast but clearly dated literature studying the entrepreneurial
personality found that certain traits seem to be associated with entrepreneurs :
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v. Cole ( 1959 ) found there are four entrepreneur : the innovator, the calcuting
inventor, the over-optimistic promoter and the organization builder. These types
are not related to the personality but to the type of opportunity the entrepreneur
faces.
vi. Burton W.Folsom, Jr. distinguishes between what he calls a political antrepreneur
and a market entrepreneur. The political entrepreneur uses political influences to
gain income through subsidies, protectionism, government-granted monopoly,
government contracts, or other such favorable arrangements with governments
( see crony and corporate welfare ). The market entrepreneur operates without
special favors from government.
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CHAPTER 1 : SOCIAL
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1.2 RELATIONSHIP BETWEEN ENTREPENEUR AND SOCIAL
Ethnic and migrant entrepreneur tend to crowd in low threshold markets, where
entrance rules are either rather inclusive or exclusive and loosely enforced, and where
capital requirement and economics of scale are small. But a firm’s changes of survival are
smaller in low threshold markets (as shown by the high mortality rates of this kind of
firm). Ethnic and migrant entrepreneurs who survive and grow are, therefore, those who
possess resources to gain competitive advantages and set barriers of newcomers through
product, process and marketing strategies, and who operate in market niches.
Typical examples of product innovation are found in new product mixes for
leisure activities such as inter-ethnic food and music and in new location for old product
in clothing, home furniture, oriental medicine practices. Ethnic and migrant entrepreneur
innovation takes advantages of the hybridization and expansion of consumer tastes,
which are fostered by globalization. This kind of strategies runs against the thesis of
economic assimilation in “normal market” as the key to ultimate success for ethnic and
migrant entrepreneurs.
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Flexible employment practice, low-skilled tasks and externalization of costs
through outsourcing are the most frequently applied strategies for process innovation
among ethnic firm (Ram, 1994).other strategies include the employment of irregular
immigrant labour with low wages and no labour rights ( Martinelli, 2002b).
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CHAPTER2 : TECHNOLOGY
The innovation theories, Schumpeter (1936) is the most influent scholar in thias
perpective. His contribution highlighted the importance of individuals in pursing
innovation, through new goods and services, new process, new raw materials,
reorganization of an industry. Further contributions in this perspective argued that
innovation extended to technological transfer and timing in new product launch, 9
( Baumol, 1993)
Individuals who create companies are called entrepreneurs. These people decide
to start a business and are either successful or unsuccessful. The Webster dictionary
defines an entrepreneur as “one who organizes, manages, and assumes the risks of a
business or enterprise.” Individuals who decide to become entrepreneurs believe that
their best career opportunity is starting, managing, and owning all or part of a company
rather than working for others.
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Technological entrepreneurship is a key source of economic and progress. It
refers to creation of new firms by independent entrepreneurs and corporations to exploit
technological discoveries. These new firms create jobs, contributes to the well beign of
their communities and generate wealth for their owners ( Bhide, 2000). These firms are
also the change makers in their respective industries as they bring in new technological
paradigms that alter the dynamics of competition and rules of rivaly ( Acs and Audretscg,
1990 ).
The first decision an entrepreneur must make is whether to start a new business or
purchase an existing one. This portion of the web site assumes the reader wants to initiate
a new business but many of the same concepts apply to buying an existing business.
The entrepreneur must have an idea. Initially, the individual may be thinking about
several new venture ideas. There are a variety of sources of ideas for new ventures. They
include are invitations from friends and business contact, prior employment, hobbies,
social encounters, observation, deliberate search, and copy other successful ideas.
In the process of identifying the prospects, the entrepreneur must decide whether
he/she wants to enter a commodity, proprietary, service or technology business. While it
is true that a technology business is a proprietary business, it is separated in this list
because so much venture capital is used in technology businesses versus other types of
new businesses. After the new venture opportunities are defined, the entrepreneur must
analyze them and decide which one to pursue. Once the entrepreneur has decided what
business to start, they must next attract stakeholder such as customers, employees,
investors and suppliers.
The entrepreneur must have customers or else the business will eventually die.
Finding and recruiting employees is an important function for the entrepreneur.
Sometimes it is difficult to attract talented persons because there is concern whether the
organization has the funding. Obtaining funds from investors is always a challenging and
continuing activity for entrepreneurs. Suppliers often demand payment before delivering
items to new companies thus possibly causing cash flow problems for the new
entrepreneurial venture.
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2.3 GROWTH
Once the entrepreneur has launched the company, then the individual must
operate the company. Assuming the new venture is successful, the entrepreneur must
develop plans to grow the company. The entrepreneur must balance cash flow and growth
appropriately as well as the possible infusion of funds from external sources.
The entrepreneur must also prepare a business plan. The business plan is useful
for operating the company and raising funds for the venture and is such an important part
of the entrepreneurial process that entire books have been written about writing a
business plan book. The entrepreneur must determine the legal form for the company;
that is, one must decide whether the company will be a sole proprietorship, partnership,
corporation, limited liability company or some other type of legal entity. It is important
for the entrepreneur to consult a competent attorney and certified public accountant to
determine the best form of legal organization for the entrepreneur. Various taxation issues
will have to be considered as part of this decision. Finally, the entrepreneur must decide
how to finance the new venture. Some of the options for financing include the
entrepreneur, friends and family, angel investors and venture capitalists. Entrepreneurs
can also seek loans from banks and government organizations like the small business
administration.
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CHAPTER 3 : ECONOMIC
Shared knowledge and collective intelligence has replaced the three traditional
pillars of value creation: land, labor, capital. In this new age, nonetheless, knowledge
capacity is underutilized as many industry leaders do not recognize the power of
intellectual capital and favor more rigid approaches to managing people and the fountains
of innovation they represent, both individually and collectively. It is difficult for
traditional management to accept that voluntary and open, market-based communities of
knowledge practice provide flexible processes of disciplined pluralism and promote
innovation, as opposed to the rigid processes of forced allegiance to other forms of
knowledge management, such as through guilds. Therefore, the fundamental political
problem of knowledge-led economic growth is that of devising the appropriate means for
channeling government action into support for markets driven by community knowledge
practices.
With the advent of the knowledge economy, the stage has been set for ensuring
the flow of knowledge and intangible assets (e.g., brands, patents, R&D projects, trained
staff) by means of policy measures. Accordingly, policymakers step into the role of
context builder that should favor human interactions for the transformation of those assets
into wealth creating resources. The prevailing doctrine, stated simply, is that
policymakers have to deploy and direct resource towards the intellectual capital with a
view to exercising more effective sway over individuals and organizations that create,
disseminate and transform knowledge.
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be structured by which more stress would be laid on a greater role for the array of
initiatives that free agents could put in practice both within national frontiers and across
borders.
The greatest challenge firms face today, in the knowledge economy age, is that of
being connected with knowledge innovation agents in a meaningful way to enhance their
capacity to handle innovation as the process to put knowledge into action. The economic
policy that complies with this challenge contends that free makers of knowledge
innovation and free knowledge markets are corollaries, and hence embraces the principle
of a light, free market-supporting regulation.
The value proposition of knowledge policy is that it helps shape a new market
context in which a powerful step toward building a knowledge-intensive economy is
taken by communities of free agents of knowledge innovation. By this view, the struggle
of the free economy remains at the heart of the debate on knowledge-relevant economic
policy.Throughout the theoretical history of entrepreneurship, scholars from multiple
disciplines in the social sciences have grappled with a diverse set of interpretations and
definitions to conceptualize this abstract idea. Over time, "some writers have identified
entrepreneurship with the function of uncertainty-bearing, others with the coordination of
productive resources, others with the introduction of innovation, and still others with the
provision of capital" (Hoselitz, 1952). Even though certain themes continually resurface
throughout the history of entrepreneurship theory, presently there is no single definition
of entrepreneurship that is accepted by all economists or that is applicable in every
economy.
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2.2 LINK WITH ENTREPENEUR
Over the next century, British economists such as Adam Smith, David Ricardo,
and John Stuart Mill briefly touched on the concept of entrepreneurship, though they
referred to it under the broad English term of "business management." Whereas the
writings of Smith and Ricardo suggest that they likely undervalued the importance of
entrepreneurship, Mill goes out of his way to stress the significance of entrepreneurship
for economic growth. In his writings, Mill claims that entrepreneurship requires "no
ordinary skill," and he laments the fact that there is no good English equivalent word to
encompass the specific meaning of the French term entrepreneur (Schumpeter, 1951).
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Like Mill, Marshall suggests that the skills associated with entrepreneurship are
rare and limited in supply. He claims that the abilities of the entrepreneur are "so great
and so numerous that very few people can exhibit them all in a very high degree" (1994).
Marshall, however, implies that people can be taught to acquire the abilities that are
necessary to be an entrepreneur. Unfortunately, the opportunities for entrepreneurs are
often limited by the economic environment which surrounds them. Additionally, although
entrepreneurs share some common abilities, all entrepreneurs are different, and their
successes depend on the economic situations in which they attempt their endeavors
(Marshall, 1994).
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CHAPTER 4 : CULTURE
4.1 THE CULTURE
More than one more a leg of a social system oriented to the enterprising culture
and the innovation, is the essential foundation. That three of their priorities of
government were education, education and education.
Then in the subject of the enterprising culture the priorities would have to
be education, education, education, education and education. Education to our children so
that they have a creative, innovating and enterprising mentality - to not only create
companies -. Education to the investing futures to understand the value of the ideas over
the money and that the investments, aside from personal monetary yield must also
produce social yield in form of general value and wealth. Education to that they will have
to decide investments of capital risk and in great companies in the mentality gain-of
winning and of the collaboration over the one to take it everything to it and to absorb.
Education to the managing futures public in delimiting the space in which they
can really contribute value. And, finally, education for which is to educate our daughters.
Because after all, as a person of the sector of education said to me kill a time, how it is
possible to be educated in the enterprising mentality if those that have it to do not have it.
As I always say, the future on the Catalan economy within twenty years she depends
more on the Conselleria de Enseñanza that of the economic ones. We will understand it
sometimes.One fourth leg of a system that creates innovating companies must be, at least
in Europe by its special idiosincracia, a sector of capital powerful public risk. However,
the capital public risk would not be due to move such exactly by criteria that the capital.
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4.2 WILD AND CRAZY INCENTIVES
Entrepreneurs may seem crazy to people on the outside looking in, but if they're
crazy, they're crazy like foxes. Out of their surprising antics and counterintuitive actions
come unique and strong cultures that serve to inspire and motivate employees and
customers. Entrepreneurs who are not afraid to do apparently wild and crazy things not
only create powerful cultures, they leave their own inimitable mark on their
organizations. Some examples:
• "Glammy" Awards. Connie Suss and her partners run the Bijin Salon and Day
Spa, a wellness and beauty center. In addition to events for employees like Hat
Day, Wig Day and Spring Madness Day, she orchestrates an annual "Glammy"
award presentation. The evening celebrates the company's success by giving
employees amusing prizes for everything from superior phone answering to
giving great massages. In addition to recognizing the special attributes of
employees, the awards reinforce all the values that Connie and her partners
believe are critical to success. Their goal with events like this is to create an
environment in which employees can pursue "Wow!" reactions on a daily basis.
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• Golden Bell/Magic Bus. Drew Hiss wants his employees at Paydata, a payroll
processing service, to know that he values them. He arranges summertime fish-fry
dinners and guided fishing trips for them. His other wild and crazy ideas include
the "Golden Bell" that's rung in the office whenever an employee gets a new order
or kudos from a customer. The bell rings a lot. And the "Magic Bus" appears now
and then to take employees to a special lunch or even to a bowling alley, as a way
to thank them for their efforts.
• Fire walk. Jeff Smith runs i2b Labs, a dot.com incubator. He gave employees in
one of his companies the astonishing opportunity to walk over hot coals barefoot
—and led the way himself. Even those who were hesitant at first managed to get
across. The event not only helped build relationships and enhance trust among his
employees, it also created a memorable life experience.
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4.3 THE POWER OF CULTURE
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CHAPTER 5 : POLITIC
5.1 THE POLITIC
A free , open minded society spawns entrepeneurship and increases the rights and
responsibilities of each citizen. Perpetuating an entrepeurial environment is one of
America’s greatest challenges as well as our brightest hope. The collective welfare of our
workers , savers ( investors ) and successors depends upon successful new business
formations. Without the revenue from these dynamic , rapidly growing enterprise the
regnant demands of our body politic will clearly go unfunded. ( Mc Clelland ; 43,1961 ).
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Despite a vast accumulation of evidence on the relationship between political
connections and economic benefits, most works in this literature assume that
entrepreneurs have political connections and researchers have largely overlooked another
important question: Why do entrepreneurs enter politics? Our purpose in this paper is to
answer this question. There has also been a voluminous literature that examines the
underdevelopment of markets and market-supporting institutions in developing and
transition economies. Governments in these countries normally possess considerable
control over the allocation of resources either through their power of planning or through
their control of state-owned enterprises, including banks (Nee 1992; McMillan 1997).
Because of the high degree of control exercised
by these governments and the imperfections in the product and credit markets, private
businesses cannot fully rely on the markets to secure resources.
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this led in the 1980s to the creation of an exceptionally innovative government ownership
form known as the Township-Village Enterprises (TVEs).1 A recent study by Djankov et
al. (2005) finds that entrepreneurs are less likely to expand their businesses if local
institutions are weak. Another response to state and market failures, one which has been
much overlooked in the literature, occurs where entrepreneurs actively participate in
politics to overcome the lack of well-functioning markets and market-supporting
institutions. Or, to put it the other way round, entrepreneurs’ motivation to participate in
politics is shaped by the institutional environment in which they operate (Bartels and
Brady 2003). Many entrepreneurs in Russia, to defend themselves against “legislation
that could raise their taxes, tie them to red tape, or threaten their property rights,” are
vying to secure a seat in the Duma, the popularly elected lower house of Russia’s
legislature. Dmitry Orlov, a political scientist at the Independent Center for Political
Technologies in Moscow, estimates that one fifth of the Duma’s 450 seats are going to be
directly occupied by business people, and twice as many as that (about
180 positions) could go to business lobbyists representing their clients’ interests
(Business Week, Dec 8, 2003). Likewise, an increasing number of businessmen in
Vietnam are running for the National Assembly, the country’s highest legislative body
(Far Eastern Economic Review, May 9, 2002).
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REFERENCES
Mc Clelland, D. The Achieving Society, Van Nostrand, Princeton NJ, 1961.
Hebert, R.F. and Link, A.N. ( 1988 ). The entrepreneur:Mainstream Views and Radical
Critiques. New York: Praeger, 2nd edition.
Reiss, B., with Cruikshank, J. L., Low Risk, High Reward: Starting and Growing Your
Business with Minimal Risk, New York: The Free Press, 2000, p. 6.
Stevenson, Howard H., Grousbeck, H. Irving, Roberts, Michael J., and Bhide, Amarnath,
New Business Ventures and the Entrepreneur, Fifth edition, Boston: Irwin/McGraw-Hill,
1999, p. 5.
Stevenson, Howard H., Grousbeck, H. Irving, Roberts, Michael J., and Bhide, Amarnath,
New Business Ventures and the Entrepreneur, Fifth edition, Boston: Irwin/McGraw-Hill,
1999, p. 5.
Reiss, B., with Cruikshank, J. L., Low Risk, High Reward: Starting and Growing Your
Business with Minimal Risk, New York: The Free Press, 2000, p. 6.
Baumol, W. ( 1980 ).
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Binks, M. and Vale, P. ( 1990 ). Entrepenreneurship and Economic Change. Maidenhead:
McGraw-Hill.
Brouwer, M.T. ( 2002 ). Weber, Scumpeter and Knight on entrepreneurship and economic
development. Journal of Evolutinary Economics, vol 12 ( 1- 2 ),
Casson, M. (2005). Entrepreneurship and the theory of the firm. Journal of Economic
Behavior & Organanization, 58 (2), 327-348.
Hebert R.F and link, A.N (1988). The Entrepreneur: Mainstream Views and Radical
Critiques. NewYork: Praeger, 2 nd edition.
Knight, F.H (1921/61). Risk uncertainty and profit. Kelly, 2nd Edition.
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FROM THE WEB SITE ( www.entrepenreneurship.my)
• Ram ( 1994 )
• Martinelli ( 2002)
• Coleman ( 1989 )
• Hoselitz ( 1952)
• Bob Reis ( 2000 )
• Bhide ( 2000 )
• ACS and Audretscg, 1990 ; Zahra and Bogner, 2000 ; Zahra, Nash and
Beckford 1995.
• Hogesta, ( 1951 )
• Adam smith, david, Ricardo, john Mill
• Alfred Marshall, ( 1890 )
• Mac Millan : 1090, 2002
• Business Week 2003, dec 8
• Far East Economic Renew ( 2002 )
• Faccio ( 2005 )
• Khwaja and Mian ( 2005 )
• Shlefer and Vishy 1994 : Fisman ( 2001 )
• Djankor ( 2005 )
• Bartels and Brady ( 2003 )
• De Sot ( 1989 )
• Connie Suss ( 1989 )
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