what Entrepreneurship is

¶ … Entrepreneurship is

Defining What Entrepreneurship Is

Entrepreneurship is the ability of an individual or team to plan and produce differentiated, valuable products and services that customers are willing to buy. The study of entrepreneurism concentrates on the highly collaborative nature of starting a new firm, where founders will often create extended, virtual teams of experts to help them take a concept into initial prototype and then production. Studies of entrepreneurs show them to have an above-average level of risk tolerance while at the same time being able to manage diverse tasks necessary to make a new venture successful (Liu, 2006).

Analysis of Entrepreneurship

The most effective entrepreneurs are able to see market opportunities from an entirely different vantage point, seeing the potential for growth and differentiated products and services while other business leaders see only price competition (Mitra, 2003). This is especially the case with Steve Jobs and other leading entrepreneurs who are or have in the lives pushed the boundaries of convention product development and the product ideation process to create state-of-the-art innovative products that define entirely new markets (Liu, 2006). A case in point is the development of the first tablet PCs and smartphones by Steve jobs, and the continual evolution of social networks by young entrepreneurs running those companies today. The role of the entrepreneur is to bring greater value to the customer through innovation and a greater emphasis on design and development that takes into account unique, unmet needs of large groups of people.

The role of the entrepreneur is also that of resource optimizer, both from a human capital and natural resource perspective. The best attributes an entrepreneur can have include the ability to quickly weigh the strengths and weaknesses of a given strategy and choose the one that best fits with the limited resoruces available at a given pioint in time. Exclelent entrepreneurs are also able to balance these many factors concurrently with one another, finding the optimal balance of risk and reward given the limited resources available at any given point in time (Liu, 2006). Entrepreneurs then are able to optimize the performance of new ventures on a minimum amount of resources and gain the highest possible return. The role of venture capitalists in the context of entrepreneurship is to seek out opportunities to help entrepreneurs to gain the critical mass of resources they need in order to succeed (Liu, 2006).