Entrepreneurship is the practice of designing, launching and running a new business, which is often originally a little company. The men and women who create these businesses are known as entrepreneurs.
Entrepreneurship was described as the "capability and willingness to grow, arrange and manage a business venture alongside some of its dangers in order to make a profit". While definitions of entrepreneurship normally revolve around the start and running of companies, due to the high risks involved in launching a start-up, an important proportion of start-up companies must close because of "lack of funding, poor business decisions, an economic crisis, lack of market demand--or a mixture of all of them.
Entrepreneurship is the action of being an entrepreneur, or even "an owner or manager of a business enterprise who makes money through danger and initiative". Entrepreneurs act as supervisors and oversee the launch and growth of a venture. Entrepreneurship is the process by which either an individual or a team defines a business opportunity and acquires and deploys the necessary resources needed for its exploitation.
Early 19th century French economist Jean-Baptiste Say provided a broad definition of entrepreneurship, stating that it "shifts economic resources from an area of lower and into a place of higher productivity and higher yield". Entrepreneurs create something fresh, something different--they change or transmute values. Regardless of the business size, big or small, they can partake in entrepreneurship opportunities. Four standards are required by the chance.
First, there needs to be opportunities or situations to recombine tools to generate profit. Secondly, entrepreneurship requires differences between people, such as preferential access to certain individuals or the capability to comprehend details regarding opportunities. Third, taking on risk is quite necessary. The entrepreneurial process requires the organization of people and resources.
The entrepreneur is a element in microeconomics and the study of entrepreneurship reaches to the work of Richard Cantillon and Adam Smith in the late 17th and early 18th centuries. But, entrepreneurship was mostly ignored theoretically before the late 19th and early 20th centuries and empirically until a profound resurgence in economics and business since the late 1970s. In the 20th century, the understanding of entrepreneurship owes much to the work of economist Joseph Schumpeter in the 1930s along with other Austrian economists such as Carl Menger, Ludwig von Mises and Friedrich von Hayek.
According to Schumpeter, an entrepreneur is someone who's willing and able to convert a new idea or innovation into a successful innovation. Entrepreneurship employs what Schumpeter called "the gale of creative destruction" to substitute in whole or part inferior innovations across markets and industries, simultaneously creating new products including new business models. This way, creative destruction is mostly responsible for its dynamism of industries and long-term economic development.
The supposition that entrepreneurship results in economic development is an interpretation of this residual in endogenous growth theory and as such is hotly debated in academic economics. An alternate description posited by Israel Kirzner suggests that the majority of innovations could be much more incremental improvements such as the replacement of paper with plastic from the creating of drinking straws.