What is Entrepreneur; In the non-legal sense, it is always a natural person who plans, successfully establishes, and/or independently and responsibly initiates a venture, taking a personal risk or capital risk.
Theory of the Entrepreneur
A distinction is made between the pioneering entrepreneur and the non-pioneering entrepreneur. The latter is also called host (Schumpeter). The figure of the pioneering entrepreneur is a black box for creativity, intuition, resourcefulness, animal spirits (Keynes), etc .; for behaviors that lead to taking up and enforcing innovations in the economic system. The motives of the entrepreneur for seizing new opportunities are manifold. The profit motive does not have to be urgent (power, success, joy).
The figure of the entrepreneur is a central component of economic development theories. It is the source of endogenous change and does not behave like the Homo economics or Robbin’s economizer, which adapts passively to restrictions with its given target mean raster. The Pioneer Entrepreneur does not focus his activities on the allocation of his funds in a given target-medium-frame but changes it. He finds new goals and/or new means. This, in turn, requires learning and the perception of such opportunities. The existence of these opportunities and thus the field of activity of the entrepreneur presuppose imperfect knowledge. Only when the knowledge is imperfect, is there something to discover.
Benefits can only be drawn from the knowledge that is not owned or used by all market participants. With this knowledge, the entrepreneur hopes to gain lead or pioneer profits. The use of entrepreneurial knowledge takes place under uncertainty. Entrepreneurs experiment and, like researchers, make hypotheses about market opportunities that they test in the market (competition).
All. the entrepreneurial element is considered only on the supply side of the market. On the demand side, pioneer buyers who test the new products can be identified as counterparts to the entrepreneur.
Types of Entrepreneurship:
1. Small Business Entrepreneurship
Today, the mind-boggling number of business visionaries and new companies in the United States are still independent ventures. There are 5.7 million independent ventures in the U.S. They make up 99.7% all things considered and utilize half of all non-administrative specialists.
Private companies are markets, beauticians, specialists, travel operators, web trade retail facades, craftsmen, handymen, circuit repairmen, and so on. They are an individual who runs his/her very own business. They contract nearby representatives or family. Most are scarcely beneficial. Their meaning of progress is to nourish the family and make a benefit, not to assume control over an industry or manufacture a $100 million business. As they can’t give the scale to pull in investment, they subsidize their organizations by means of companions/family or private company credits.
2. Scalable Startup Entrepreneurship
In contrast to private companies, versatile new businesses are what Silicon Valley business visionaries and their endeavor speculators do. These business people begin an organization knowing from the very beginning that their vision could change the world. They pull in speculation from similarly insane money related speculators – investors. They enlist the best and the most splendid. Their activity is to look for a repeatable and adaptable plan of action. When they discover it, their emphasis on scale requires much more investment to fuel fast development.
Adaptable new businesses in development groups (Silicon Valley, Shanghai, New York, Bangalore, Israel, and so on.) make up a little level of business visionaries and new businesses but since of the outsize returns, draw in all the hazard capital (and press.)
3. Large Company Entrepreneurship
Huge organizations have limited life cycles. Most develop through supporting advancement, offering new items that are variations around their center items. Changes in client tastes, new advancements, enactment, new contenders, and so forth can make weight for more problematic development – requiring expansive organizations to make completely new items sold into new clients in new markets. Existing organizations do this by either securing imaginative organizations or endeavoring to assemble a troublesome item inside. Unexpectedly, extensive organization size and culture make problematic advancement to a great degree hard to execute.
4. Social Entrepreneurship
Social business visionaries are pioneers who center around making items and administrations that take care of social needs and issues. In any case, dissimilar to adaptable new companies they will probably improve the world a place, not to take the piece of the overall industry or to make to riches for the authors. They might be not-for-profit, for-benefit, or mixture.