Role Of Entrepreneurship
ROLE OF ENTREPRENEURSHIP
Entrepreneurship plays a central role in promoting economic growth and competitiveness. New companies generate economy-wide benefits both directly and by stimulating their more established competitors. A critical question is, then, what role public policy plays in encouraging the development and growth of entrepreneurial enterprises.
This article will familiarize fellows with fundamental knowledge about entrepreneurship and policy issues that affect the €opportunity structure€ or €context€ for entrepreneurship
The terms €entrepreneur€ and €entrepreneurship€ are used in a wide variety of ways by researchers, policymakers, politicians, and the public at large. At the most general level, the term €entrepreneur€ can be used to refer to any person who acts in a way that is innovative, creative and oriented toward growth and opportunity. This general sort of definition is what one will find in a dictionary. By this definition, the term entrepreneur can be used to refer not only to people who begin new businesses, but also to those who start social movements, religions, non-profit organizations, as well as artists, musicians and other creative individuals. For the purposes of this class, we will be focusing on more narrow definitions of entrepreneurship.
It is common for researchers to restrict the general definition of entrepreneurship to focus only on people who found new businesses. This approach tends to equate entrepreneurship with self-employment and small business. An alternative is to emphasize productive activity that results in either a new product or service or a method to produce existing goods or services at lower cost. This alternative allows for the possibility that existing organizations or even large firms are capable of being entrepreneurs. It also suggests that not all self-employed individuals or new firms are in fact entrepreneurs.
Our perspective is that the third definition is most closely aligned with pro-entrepreneurship policy objectives. Unfortunately, it is definition of entrepreneurship that is difficult to operationalize. Throughout the course, we will revisit the definitional issue and discuss how research studies and policy makers in different areas have defined entrepreneurship and discuss the implications of that definition for the interpretation of their results.
The following characteristics of individuals are likely to influence their assessment of the potential value of an entrepreneurial opportunity: opportunity cost, financial resources and stocks of financial capital, social capital, social ties to investors -- the network success hypothesis, education, prior employment and/or entrepreneurial experience (generalist vs. specialist), personality (motivational differences, willingness to take risk, optimism, tolerance for ambiguity, need for achievement).
Public policy can help to encourage individuals and exploit opportunities that they have
€ Entrepreneurship education
€ Financial assistance programs
€ Health insurance policy
€ minority entrepreneurship programs
€ Loan programs
- Subsidized loans
- Micro-finance
€ Small business research grants
Entrepreneurship plays a central role in promoting economic growth and competitiveness. New companies generate economy-wide benefits both directly and by stimulating their more established competitors. A critical question is, then, what role public policy plays in encouraging the development and growth of entrepreneurial enterprises.
This article will familiarize fellows with fundamental knowledge about entrepreneurship and policy issues that affect the €opportunity structure€ or €context€ for entrepreneurship
The terms €entrepreneur€ and €entrepreneurship€ are used in a wide variety of ways by researchers, policymakers, politicians, and the public at large. At the most general level, the term €entrepreneur€ can be used to refer to any person who acts in a way that is innovative, creative and oriented toward growth and opportunity. This general sort of definition is what one will find in a dictionary. By this definition, the term entrepreneur can be used to refer not only to people who begin new businesses, but also to those who start social movements, religions, non-profit organizations, as well as artists, musicians and other creative individuals. For the purposes of this class, we will be focusing on more narrow definitions of entrepreneurship.
It is common for researchers to restrict the general definition of entrepreneurship to focus only on people who found new businesses. This approach tends to equate entrepreneurship with self-employment and small business. An alternative is to emphasize productive activity that results in either a new product or service or a method to produce existing goods or services at lower cost. This alternative allows for the possibility that existing organizations or even large firms are capable of being entrepreneurs. It also suggests that not all self-employed individuals or new firms are in fact entrepreneurs.
Our perspective is that the third definition is most closely aligned with pro-entrepreneurship policy objectives. Unfortunately, it is definition of entrepreneurship that is difficult to operationalize. Throughout the course, we will revisit the definitional issue and discuss how research studies and policy makers in different areas have defined entrepreneurship and discuss the implications of that definition for the interpretation of their results.
The following characteristics of individuals are likely to influence their assessment of the potential value of an entrepreneurial opportunity: opportunity cost, financial resources and stocks of financial capital, social capital, social ties to investors -- the network success hypothesis, education, prior employment and/or entrepreneurial experience (generalist vs. specialist), personality (motivational differences, willingness to take risk, optimism, tolerance for ambiguity, need for achievement).
Public policy can help to encourage individuals and exploit opportunities that they have
€ Entrepreneurship education
€ Financial assistance programs
€ Health insurance policy
€ minority entrepreneurship programs
€ Loan programs
- Subsidized loans
- Micro-finance
€ Small business research grants
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