Enterperenship

 Enterperenship

. "Entrepreneur" redirects here. For other uses, see Entrepreneur (disambiguation).

Entrepreneurship is the creation or extraction of economic value in ways that generally entail beyond the minimal amount of risk (assumed by a traditional business), and potentially involving values besides simply economic ones.

. An entrepreneur (French: [institute]) is an individual who creates and/or invests in one or more businesses, bearing most of the risks and enjoying most of the rewards.[1] The process of setting up a business is known as "entrepreneurship". The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures.

. More narrow definitions have described entrepreneurship as the process of designing, launching and running a new business, often similar to a small business, or (per Business Dictionary) as the "capacity and willingness to develop, organize and manage a business venture along with any of its risks to make a profit".2] The people who create these businesses are often referred to as "entrepreneurs".[3][4]

In the field of economics, the term  

   Entrepreneur is used for an entity that has the ability to translate inventions or technologies into products and services.[5] In this sense, entrepreneurship describes activities on the part of both established firms and new businesses.

Perspectives on entrepreneurship

Elements

. Several scientifically validated frameworks have been developed to systematically classify entrepreneurial behaviors. The Theory of Planned Behavior (TPB), developed by Icek Ajzen, identifies four key behavioral components: attitude toward entrepreneurship, subjective norms, perceived behavioral control, and   

  Entrepreneurial intention, with extensive validation across over 22 countries.[114][115] Entrepreneurial Orientation (EO) encompasses five dimensions—innovativeness, risk-taking, proactiveness, competitive aggressiveness, and autonomy—validated through comprehensive analysis of over 62,000 citations across 822 publications.[116][117] Effectuation Theory, developed by Saras Sarasvathy, provides a taxonomy of decision-making behaviors with five principles (Bird-in-Hand, Affordable Loss, Crazy Quilt, Lemonade, and Pilot-in-the-Plane) validated through longitudinal studies of expert entrepreneurs and generating over 6,800 citations.[118][119]

. Emerging frameworks include the Twelve Pillars of Entrepreneurship, developed by Dane Wagner and Dr. Nikki Blacksmith at Sameta Behavior Science, which organizes behaviors into four cornerstones (Cognition, Action, Relational, and Motivational) encompassing twelve dimensions of behaviors: Vision, Strategy, Resourcefulness, Collaboration, Direction, Influence, Decision  

     Making, Innovation, Execution, Autonomy, Intensity, and Tenacity.[120] This framework has a foundation in meta-analysis of over 1,000 studies, and well documented use within incubators and investment firms. The Individual Entrepreneurial Orientation (IEO) scale, developed by Clark, Covin, and Pidduck (2024), represents     

. advancement in measuring individual-level entrepreneurial behaviors through a validated System instrument that addresses the gap between firm-level and personal behavioral measurement.[121]

       These taxonomies collectively provide comprehensive frameworks for understanding, measuring, and predicting entrepreneurial behaviors across different contexts and levels of analysis.

Uncertainty perception and risk-taking

edit

. Theorists Frank Knight[122] and Peter Drucker defined entrepreneurship in terms of risk-taking. The entrepreneur is willing to put his or her career and financial security on the line and take risks in the name of an idea, spending time as well as capital on an uncertain venture. However, entrepreneurs often do not believe that they have taken an enormous amount of risks because they do not perceive the level of uncertainty to be as high as other people do. Knight classified three types of uncertainty:

. Risk, which is measurable statistically (such as the probability of drawing a red color ball from a jar containing five red balls and five white balls)

Ambiguity, which is hard to measure statistically (such as the probability of drawing a red ball from a jar containing five red balls but an unknown number of white balls)

. True uncertainty or Knightian uncertainty, which is impossible to estimate or predict statistically (such as the probability of drawing a red ball from a jar whose contents, in terms of numbers of coloured balls, are entirely unknown)

. Entrepreneurship is often associated with true uncertainty, particularly when it involves the creation of a novel good or service, for a market that did not previously exist, rather than when a venture creates an incremental improvement to an existing product or service. A 2014 study at ETH Zürich found that compared with typical managers, entrepreneurs showed higher decision-making efficiency and a stronger activation in regions of frontopolar cortex (FPC) previously associated with explorative choice.[123]

. According to Shane and Venkataraman, entrepreneurship comprises both "enterprising individuals" and "entrepreneurial opportunities", so    

  Researchers should study the nature of the individuals who identify opportunities when others do not, the opportunities themselves and the nexus between individuals and opportunities.[124] On the other hand, Reynolds et al.[125] argue that individuals are motivated to engage in entrepreneurial endeavours driven mainly by necessity or opportunity, that is individuals 

  Entrepreneurship primarily owing to survival needs, or because they identify business opportunities that satisfy their need for achievement. For example, higher economic inequality tends to increase necessity-based entrepreneurship rates at the individual level.[126]

Opportunity perception and biases

edit

. One study has found that certain genes affecting personality may influence the income of self-employed people.[127] Some people may be able to use[weasel words] "an innate ability" or quasi-statistical sense to gauge public opinion[128] and market demand for new products or services.

       Entrepreneurs tend to have the ability to see unmet market needs and underserved markets. While some entrepreneurs assume they can sense and figure out what others are thinking, the mass media plays a crucial role in shaping views and demand.[129] Ramoglou argues that entrepreneurs are not that distinctive and that it is essentially poor conceptualizations of "non-entrepreneurs" that maintain laudatory portraits of "entrepreneurs" as exceptional innovators or leaders[130][131] Entrepreneurs are often overconfident, exhibit illusion of control, when they are opening/expanding business or new products/services.[24]

. Entrepreneurs must practice effective communication both within their firm and with external partners and investors to launch and grow a venture and enable it to survive. An entrepreneur needs a communication 

. System that links the staff of their firm and connects the firm to outside firms and clients. Entrepreneurs should be charismatic leaders, so they can communicate a vision effectively to their team and help to create a strong team. Communicating a vision to followers may be the most important act of the transformational leader.[133] Compelling visions provide employees with a sense of purpose and encourage commitment. 

   According to Baum et al.[134] and Sizes and Posner,[135] the vision must be communicated through written statements and through in-person communication. Entrepreneurial leaders must speak and listen to articulate their vision to others.[136]

. Communication is pivotal in the role of entrepreneurship because it enables leaders to convince potential investors, partners and employees about the feasibility of a venture.[137] Entrepreneurs need to communicate effectively to shareholders.[138] Nonverbal elements in speech such as the tone of voice, the look in the sender's eyes, body language, hand gestures and state of emotions are also important communication tools. 

. The Communication Accommodation Theory posits that throughout communication people will attempt to accommodate or adjust their method of speaking to others.[139] Face Negotiation Theory describes how people from different cultures manage conflict negotiation to maintain "face".[140] Hugh Rank's "intensify and downplay" communications model can be used by entrepreneurs who are Devloping a new product or service. Rank argues that entrepreneurs need to be able to intensify the advantages of their new product or service and downplay the disadvantages to persuade others to support their venture.

. Research from 2014 found links between entrepreneurship and historical sea piracy. In this context, the claim is made for a non-moral approach to looking at the history of piracy as a source of inspiration for entrepreneurship education[142] as well as for research in entrepreneurship[143] and business model generation.rnership

.  "Entrepreneur" redirects here. For other uses, see Entrepreneur (disambiguation).

Entrepreneurship is the creation or extraction of economic value in ways that generally entail beyond the minimal amount of risk (assumed by a traditional business), and potentially involving values besides simply economic ones.

.   An entrepreneur (French: [institute]) is an individual who creates and/or invests in one or more businesses, bearing most of the risks and enjoying most of the rewards.[1] The process of setting up a business is known as "entrepreneurship". The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures.

.    More narrow definitions have described entrepreneurship as the process of designing, launching and running a new business, often similar to a small business, or (per Business Dictionary) as the "capacity and willingness to develop, organize and manage a business venture along with any of its risks to make a profit".2] The people who create these businesses are often referred to as "entrepreneurs".[3][4]

In the field of economics, the term  

   Entrepreneur is used for an entity that has the ability to translate inventions or technologies into products and services.[5] In this sense, entrepreneurship describes activities on the part of both established firms and new businesses.

Perspectives on entrepreneurship

Elements

.   Several scientifically validated frameworks have been developed to systematically classify entrepreneurial behaviors. The Theory of Planned Behavior (TPB), developed by Icek Ajzen, identifies four key behavioral components: attitude toward entrepreneurship, subjective norms, perceived behavioral control, and   

  Entrepreneurial intention, with extensive validation across over 22 countries.[114][115] Entrepreneurial Orientation (EO) encompasses five dimensions—innovativeness, risk-taking, proactiveness, competitive aggressiveness, and autonomy—validated through comprehensive analysis of over 62,000 citations across 822 publications.[116][117] Effectuation Theory, developed by Saras Sarasvathy, provides a taxonomy of decision-making behaviors with five principles (Bird-in-Hand, Affordable Loss, Crazy Quilt, Lemonade, and Pilot-in-the-Plane) validated through longitudinal studies of expert entrepreneurs and generating over 6,800 citations.[118][119]

.   Emerging frameworks include the Twelve Pillars of Entrepreneurship, developed by Dane Wagner and Dr. Nikki Blacksmith at Sameta Behavior Science, which organizes behaviors into four cornerstones (Cognition, Action, Relational, and Motivational) encompassing twelve dimensions of behaviors: Vision, Strategy, Resourcefulness, Collaboration, Direction, Influence, Decision  

     Making, Innovation, Execution, Autonomy, Intensity, and Tenacity.[120] This framework has a foundation in meta-analysis of over 1,000 studies, and well documented use within incubators and investment firms. The Individual Entrepreneurial Orientation (IEO) scale, developed by Clark, Covin, and Pidduck (2024), represents     

.   advancement in measuring individual-level entrepreneurial behaviors through a validated System instrument that addresses the gap between firm-level and personal behavioral measurement.[121]

       These taxonomies collectively provide comprehensive frameworks for understanding, measuring, and predicting entrepreneurial behaviors across different contexts and levels of analysis.

Uncertainty perception and risk-taking

edit

.  Theorists Frank Knight[122] and Peter Drucker defined entrepreneurship in terms of risk-taking. The entrepreneur is willing to put his or her career and financial security on the line and take risks in the name of an idea, spending time as well as capital on an uncertain venture. However, entrepreneurs often do not believe that they have taken an enormous amount of risks because they do not perceive the level of uncertainty to be as high as other people do. Knight classified three types of uncertainty:

.   Risk, which is measurable statistically (such as the probability of drawing a red color ball from a jar containing five red balls and five white balls)

Ambiguity, which is hard to measure statistically (such as the probability of drawing a red ball from a jar containing five red balls but an unknown number of white balls)

.   True uncertainty or Knightian uncertainty, which is impossible to estimate or predict statistically (such as the probability of drawing a red ball from a jar whose contents, in terms of numbers of coloured balls, are entirely unknown)

.   Entrepreneurship is often associated with true uncertainty, particularly when it involves the creation of a novel good or service, for a market that did not previously exist, rather than when a venture creates an incremental improvement to an existing product or service. A 2014 study at ETH Zürich found that compared with typical managers, entrepreneurs showed higher decision-making efficiency and a stronger activation in regions of frontopolar cortex (FPC) previously associated with explorative choice.[123]

.   According to Shane and Venkataraman, entrepreneurship comprises both "enterprising individuals" and "entrepreneurial opportunities", so    

  Researchers should study the nature of the individuals who identify opportunities when others do not, the opportunities themselves and the nexus between individuals and opportunities.[124] On the other hand, Reynolds et al.[125] argue that individuals are motivated to engage in entrepreneurial endeavours driven mainly by necessity or opportunity, that is individuals 

  Entrepreneurship primarily owing to survival needs, or because they identify business opportunities that satisfy their need for achievement. For example, higher economic inequality tends to increase necessity-based entrepreneurship rates at the individual level.[126]

Opportunity perception and biases

edit

.    One study has found that certain genes affecting personality may influence the income of self-employed people.[127] Some people may be able to use[weasel words] "an innate ability" or quasi-statistical sense to gauge public opinion[128] and market demand for new products or services.

       Entrepreneurs tend to have the ability to see unmet market needs and underserved markets. While some entrepreneurs assume they can sense and figure out what others are thinking, the mass media plays a crucial role in shaping views and demand.[129] Ramoglou argues that entrepreneurs are not that distinctive and that it is essentially poor conceptualizations of "non-entrepreneurs" that maintain laudatory portraits of "entrepreneurs" as exceptional innovators or leaders[130][131] Entrepreneurs are often overconfident, exhibit illusion of control, when they are opening/expanding business or new products/services.[24]

.   Entrepreneurs must practice effective communication both within their firm and with external partners and investors to launch and grow a venture and enable it to survive. An entrepreneur needs a communication 

.  System that links the staff of their firm and connects the firm to outside firms and clients. Entrepreneurs should be charismatic leaders, so they can communicate a vision effectively to their team and help to create a strong team. Communicating a vision to followers may be the most important act of the transformational leader.[133] Compelling visions provide employees with a sense of purpose and encourage commitment. 

   According to Baum et al.[134] and Sizes and Posner,[135] the vision must be communicated through written statements and through in-person communication. Entrepreneurial leaders must speak and listen to articulate their vision to others.[136]

.    Communication is pivotal in the role of entrepreneurship because it enables leaders to convince potential investors, partners and employees about the feasibility of a venture.[137] Entrepreneurs need to communicate effectively to shareholders.[138] Nonverbal elements in speech such as the tone of voice, the look in the sender's eyes, body language, hand gestures and state of emotions are also important communication tools. 

.   The Communication Accommodation Theory posits that throughout communication people will attempt to accommodate or adjust their method of speaking to others.[139] Face Negotiation Theory describes how people from different cultures manage conflict negotiation to maintain "face".[140] Hugh Rank's "intensify and downplay" communications model can be used by entrepreneurs who are Devloping a new product or service. Rank argues that entrepreneurs need to be able to intensify the advantages of their new product or service and downplay the disadvantages to persuade others to support their venture.

.    Research from 2014 found links between entrepreneurship and historical sea piracy. In this context, the claim is made for a non-moral approach to looking at the history of piracy as a source of inspiration for entrepreneurship education[142] as well as for research in entrepreneurship[143] and business model generation.