Tuesday, March 28, 2023

Entrepreneurship in outline

Must Read

A.1 How is the profession of entrepreneurship defined?

There are various definitions of the term entrepreneur in the scientific literature. The profession of the entrepreneur, entrepreneurship, has been defined in different ways over the years. A handy definition that can be used for the entrepreneur and his entrepreneurship is that of Schumpeter (1936). He mentions two important elements in his definition of the “ entrepreneur ” and “ the enterprise ” he carries out:

Read more: linkedin – shlomo rechnitz

  • Practicing new combinations ;
  • Causing so-called discontinuity

He lists four possibilities for new combinations . On the one hand, he refers to an improvement or innovation in the production of the product. Both in (a) the raw materials used and (b) the production process used. In addition, new combinations can also consist of (c) offering improved or new products or services or (d) addressing new markets.

Discontinuity is described by Schumpet as offering a value that is new to society, that is in demand and that clients are willing to pay for.

There are two types of entrepreneurs:

  • (a) the organizing entrepreneur, someone who starts a business based on existing ideas and concepts. The company is managed on the basis of these existing ideas;
  • (b) the innovative entrepreneur, someone who starts a new business based on new knowledge, ideas or possibilities.

For an organizing company , mainly management competences are required. An innovative company requires more analytical and technical competences.

A.2 A spectrum of competences for entrepreneurship

Broadly speaking, business plans can be discussed based on the three O’s .

  • the entrepreneur as in person;
  • the company as well as in the organization;
  • the collateral as well as in the company’s finances (Van der Meer, 2010: p.14).

A business plan therefore also describes the skills and knowledge of the entrepreneur. A successful entrepreneur possesses a spectrum of skills and knowledge. These can be divide into three type of competence: personal competences; competencies for business operations; and strategic competence. The core competence are list below for each type of competencies.

Personal competences:

  • Takes initiative and risks.
  • Have enough perseverance and self-confidence
  • Is able to set achievable goals
  • Is creative

Business management competencies:

  • Dares to ask outsiders for help to achieve own goals
  • Has communicative and interpersonal skills
  • Has financial and business skills

The following strategic competence are also require for the innovative entrepreneur :

  • Is able to identify and exploit opportunities
  • Is able to name the most interesting markets
  • Is able to create an advantage over competitors

A.3 Analysis of entrepreneurial Netherlands

The Netherlands is not an enterprising country. This can be conclude from the annual Global Entrepreneurship Monitor (GEM) report, which compare 42 country. This report also shows that lenders in the Netherlands are not very willing to support starters. These figures also show that the Dutch are relatively slow to start a business. If they do this, they are often successful. Enterprising Netherlands is conservative in the field of technology. In 2008, less than 10% of the young company in the Netherland were involve in something that no other company was doing. This can be conclude from “the figure on the Dutch business climate”.

Mention entrepreneurs as the most important motives for starting their own business; the challenging nature; the freedom of being your own boss; performing specific activities; the financial opportunities; finding and exploiting a gap in the market. As disappointing points they mention; less free time than expected; psychic exertion; disappointing income. Problems encounter by entrepreneur are ofen link to the commercial and financial elements of entrepreneurship. These are for example; payments that are not on time; strong competition; difficulty with financial management; difficulty finding a market; Difficulty determining the right price.

A.4 Starting a business

Broadly speaking, starting a business consists of three steps: (a) thinking about it; (b) register; (c) act.

Thinking carefully and writing a business plan increases the chance of a successful business. When writing a business plan, the entrepreneur considers the risks associated with the company. The entrepreneur considers the following elements; (a) whether he has the right competencies required; (b) what is the market it wants to focus on; (c) who its clients are; (d) how it intends to approach customers; (e) what legislation he has to deal with; (f) what legal form he wants to give his company; and (g) where he will settle.

After the business plan write, the company must register its business with the Tax and Customs Administration and the Chamber of Commerce . If a company is start with several people, it is advisable (and sometimes even mandatory) to draw up an agreement. This agreement consists of agreements on the division of activities, powers and remuneration. The next step that can be take is to actually act. In this phase, the company is establish and the plan activities are carry out.

Latest News

A safe playground is a great way to improve your gaming experience

It can help you boost your morale and increase the amount of money you make. This is especially true...

More Articles Like This