Research Benefits Definition of Terms
11 Similarly, the word entrepreneurship, which most people interpret as meaning
what entrepreneurs do mainly, in the public mind, starting successful new businesses, conjures up images of heroic efforts by entrepreneurs to convert their
ideas and visions to reality and so, perhaps, change the lives of countless people - and the world. Basically, the term of entrepreneurship first appeared in a
significant volume about 20 years ago, and it has now reached a reasonable state of maturity.
The term entrepreneur has been introduced into economic theory by Cantillon in 1759. According to Cantillon, the entrepreneurship is related to
taking a risk. However, this idea is refined by the US economist Knight 1921. According to Knight, risk refers to recurrent events of which relative frequency is
known from past experience, while uncertainty relates to unique events whose probability can only be subjectively estimated. Then, popular notions of
entrepreneurship are based on the heroic vision that is put forward by Schumpeter 1934. The entrepreneur is visualized as an innovator who creates new industries
and thereby precipitates major structural changes in economy. Entrepreneurship is seen as a fundamentally important part of modern
economic and social life. However, the definitions of entrepreneurship are dependent on whose perspective is being considered. Entrepreneurship is usually
associated with the world of business. An entrepreneur is often defined as one who starts hisher own, new and small business. It can be said that not every small
business is entrepreneurial or represents entrepreneurship. The context for entrepreneurship is highly differentiated. According to Wilson 2010,
12 entrepreneurship requires being enterprising in particular context - where
innovative new products andor services are produced. There are a number of different definitions of the terms entrepreneurship
and entrepreneur. Some definitions insist that all entrepreneurship must result in the founding of a new venture; other definitions allow entrepreneurship to take
place within the context of an existing organization. Guth Ginsberg 1990 provide a broad and flexible definition of corporate entrepreneurship that can be
extended to include independent entrepreneurship. They state that: The topic of corporate entrepreneurship encompasses two types of
phenomena and the processes surrounding them: 1 the birth of new businesses within existing organizations, i.e. internal innovation or
venturing; and 2 the transformation of organizations through renewal of the key ideas on which they are built, i.e. strategic renewal p. 5.
Add a third class of activity, i.e. “3 the birth of new businesses formed outside the auspices of existing organizations,” and this definition adequately covers both
corporate and independent entrepreneurship. Baron 2012 provides one reason why many courses on entrepreneurship
focus heavily on business models and business plans, and seem to assume that these are, and should be, the true heart of the field. Entrepreneurship usually
makes its home in schools of business or management, and is viewed as being, primarily, a branch of management, where it joins other, and more established
fields such as marketing, finance, and operations. However, Baron 2012 emphasizes that entrepreneurship involves something more basic. In essence, it
involves the human capacities. The human capacities are creativity, ingenuity, knowledge, skills, and energy to develop something new, useful, and better than
13 what currently exists - and that creates some kind of value social or economic.
In other words, it occurs whenever, wherever, and however individuals take concrete
action to convert their ideas and dreams into something better” into reality-
whenever and however they try to give them tangible existence in the external world.