What Is Entrepreneurship ?
The theory of entrepreneurship was first introduced in the 1700s. Since then, its meaning has changed with the times. |
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Many economists think that entrepreneurship is taking risk to start new enterprise to earn great profits. While others think that an entrepreneur is a trendsetter who sells his new ideas. Some other economists opine that entrepreneurship is developing new things or technologies according to the market’s needs.
A 20th century economist Joseph Schumpeter’s opinion was that entrepreneurship is a power of “creative destruction”. Because, an entrepreneur always introduces innovative and better ways to do business and the old traditional ways become obsolete.
Mainly all economists now have the same opinion that entrepreneurship is an essential factor for motivating economic development and job prospects in any society. In developing nations, growth of small industries play a very significant role in creating more jobs, economic development and consequently in reducing poverty. Hence, government policy to aid entrepreneurship is very important for economic growth. Government incentives motivate entrepreneurs to take risk to start new projects. Government makes laws to implement rights to property and to promote competition in the market.
The culture and traditions of a society also play a vital role in deciding the role of entrepreneurship in that society. Any society that gives the uppermost position to those at the peak of hierarchical associations or those having specialization in their areas may deject entrepreneurship. On the other hand, a society or strategy that gives much importance to an individual having innovative ideas is rather more helpful to promote entrepreneurship. True entrepreneurship is the outcome of the courage to start new ventures.
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