TAILIEUCHUNG - Principles of Entrepreneurship

To the foregoing one might add the approach which, in addition to culture as an internal variable or as a metaphor, is centred on analysing culture as a broader variable, which goes beyond the organisation and its most immediate environment, introducing the nations’ culture (cross cultural-cross national perspective) as one of the conditioning elements of control systems (Inzerilli and Rosen, 1983; Ronen, 1986; Nath, 1988; Shin et al, 1990; Lachman et al., 1994). Despite the progress made by taking into account the cultural and anthropological aspects of control systems, this line of research is not without its critics. One of. | principles of Entrepreneurship 1. What Is Entrepreneurship What is meant by entrepreneurship The concept of entrepreneurship was first established in the 1700s and the meaning has evolved ever since. Many simply equate it with starting one s own business. Most economists believe it is more than that. To some economists the entrepreneur is one who is willing to bear the risk of a new venture if there is a significant chance for profit. Others emphasize the entrepreneur s role as an innovator who markets his innovation. Still other economists say that entrepreneurs develop new goods or processes that the market demands and are not currently being supplied. In the 20th century economist Joseph Schumpeter 1883-1950 focused on how the entrepreneur s drive for innovation and improvement creates upheaval and change. Schumpeter viewed entrepreneurship as a force of creative destruction. The entrepreneur carries out new combinations thereby helping render old industries obsolete. Established ways of doing business are destroyed by the creation of new and better ways to do them. Business expert Peter Drucker 1909-2005 took this idea further describing the entrepreneur as someone who actually searches for change responds to it and exploits change as an opportunity A quick look at changes in communications from typewriters to personal computers to the Internet illustrates these ideas. Most economists today agree that entrepreneurship is a necessary ingredient for stimulating economic growth and employment opportunities in all societies. In the developing world successful small businesses are the primary engines ofjob creation income growth and poverty reduction. Therefore govern ment support for entrepreneurship is a crucial strategy for economic development. As the Business and Industry Advisory Committee to the Organization for Economic Cooperation and Development OECD said in 2003 Policies to foster entrepreneurship are essential to job creation and economic growth. .

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