- Early-19th-century French economist Jean-Baptiste Say provided a broad definition of entrepreneurship, saying that it “shifts economic resources out of an area of lower and into an area of higher productivity and greater yield”. Entrepreneurs create something new, something different they change or transmute values.
- First, there must be opportunities or situations to recombine resources to generate profit.
- Second, entrepreneurship requires differences between people, such as preferential access to certain individuals or the ability to recognize information about opportunities.
- Third, taking on risk is a necessity.
- Fourth, the entrepreneurial process requires the organization of people and resources
- The understanding of entrepreneurship owes much to the work of economist Joseph Schumpeter in the 1930s and other Austrian economists such as Carl Menger, Ludwig von Mises and Friedrich von Hayek.
- According to Schumpeter, an entrepreneur is a person who is willing and able to convert a new idea or invention into a successful innovation.
- Entrepreneurship employs what Schumpeter called “the gale of creative destruction” to replace in whole or in part inferior innovations across markets and industries, simultaneously creating new products including new business models.
- In this way, creative destruction is largely responsible for the dynamism of industries and long-run economic growth.
- The supposition that entrepreneurship leads to economic growth is an interpretation of the residual in endogenous growth theory and as such is hotly debated in growth theory of Economics.
- An alternative description posited by Israel Kirzner suggests that the majority of innovations may be much more incremental improvements such as the replacement of paper with plastic in the making of drinking straws.
As a Summary Schumpeter saw the role of the entrepreneur in the economy as “creative destruction” launching innovations that simultaneously destroy old industries while ushering in new industries and approaches.
A more Liberal view and alternative to Schumpeter: “Entrepreneurs exhibit positive biases towards finding new possibilities and seeing unmet market needs, and a tendency towards risk-taking that makes them more likely to exploit business opportunities.”
The 2002 rankings of American Entrepreneurs
- Henry Ford
- Bill Gates;
- John D. Rockefeller;
- Andrew Carnegie,
- Thomas Edison.
At least early on, entrepreneurs often “bootstrap-finance” their start-up rather than seeking external investors from the start. One of the reasons that some entrepreneurs prefer to “bootstrap” is that obtaining equity financing requires the entrepreneur to provide ownership shares to the investors. If the start-up becomes successful later on, these early equity financing deals could provide a windfall for the investors and a huge loss for the entrepreneur.
If investors have a significant stake in the company, they may as well be able to exert influence on company strategy, chief executive officer (CEO) choice and other important decisions. This is often problematic since the investor and the founder might have different incentives regarding the long-term goal of the company.
An investor will generally aim for a profitable exit and therefore promotes a high-valuation sale of the company. Whereas the entrepreneur might have philanthropic intentions as their main driving force. Soft values like this might not go well with the short-term pressure on yearly and quarterly profits that publicly traded companies often experience from their owners.
There are many different ways to finance and promote entrepreneurs.
- Startup accelerators
- Angel investors
- Venture capital investors
- Equity crowdfunding
- Hedge funds
- Debt options open to entrepreneurs include: Loans from banks, financial technology companies and economic development organizations Line of credit also from banks and financial technology companies Microcredit also known as microloans Merchant cash advance Revenue-based financing Grant options open to entrepreneurs include: Equity-free accelerators Business plan/business pitch competitions for college entrepreneurs and others Small Business Innovation Research grants from the U.S. government
Current state of the world is a mobile application era. Mobile applications have unknowingly become a significant part of employees working in different industries. Users want to have access to everything with the click of a button and in an user-friendly environment individualized to their preference.
Whatever your business strength is, you must have a business app to reach out to your consumers and then proclaim the product information in todays world of the digital revolution. The future of business would be built on mobile technologies with a global presence in social media
Healthcare industryThere are around 1,000,000 and over healthcare and fitness apps currently available in mobile and tablet formats.
Finance industryWith the recent developments in mobile technology, the finance industry can access their huge amounts of sensitive and important data anytime. According to research by Google, 41% of smartphone users use their mobile phones for finance-related activities, 82% of which do so weekly.
|*****| | Entrepreneur Index|
|*****| Yahoo Finance Entrepreneur Index|
+Google : goog, optimal forecast : 2020 03 03
+Twitter : twtr optimal forecast : 2020 03 20
+Facebook : fb, optimal forecast : 2020 04 02
+Eurodolar : eurusd=x, optimal forecast : 2020-05-27
+usd Dolar : USDTRY=x, optimal forecast : 2020-03-11
+eur euro : eurTRY=x, optimal forecast :2020-07-02
+Bitcoin : BTC-USD, optimal forecast :2019-02-05
Entertainment industryLately, the entertainment industry has been creating many gaming and entertainment applications for their customers so that they always feel entertained and with their apps. The average smartphone user spends about 15% of their time on music, media, and entertainment mobile apps.
Game industry revenue in 2020 is 150 billion dollars !!!
eCommerce industryUsing increased actuality in online shopping apps allows e-commerce companies to supply a product description and upload images to persuade convince the potential buyers into buying the products.Sales figures from the retailer mobile app market are expected to increase to $206.35 billion in 2018 and were just over $80 billion in 2015. Even so, these numbers are not astonishing, seeing that almost 90% of e-commerce customers would rather make use of retail apps than to use mobile websites for their needs. Mobile apps also increase the chances that users buy more as compared to browsing and perusing. They browse through more products while using mobile apps, about 286% more than when visiting mobile websites. With these figures rising as the years advance, it is imperious that companies assume e-commerce app development as part of their development strategy.
Tourism & Travel industryA report claims that 30% of smartphone users use their device to find the best deals for hotels and flights, making travel-related apps the seventh most downloaded apps on mobile.
IT industryTo lure businesses to brand new technologies, the IT industry needs to show their innovations and advancements to its customers, which is flawlessly done through a unique mobile application.
Education industryThe ease of Mobility has led to the making of the learning process a lot convenient and affordable in todays scenario. E learning is still the newest trend in the educational sector surpassing a few years. Its a voyage from Whiteboard learning to a Keyboard learning environment. Mobility is unquestionably the technology that is going to reduce the limitations of distancing that exists in the education industry and then bring it to the doorsteps of the students. Also, educational applications can personalize and customize the students interest and then reduce the differences between education and geographic boundaries.
Hospitality & Food service industryThe hospitality and foodservice centers are one of the most wide-ranging industries in the world, with the retail value of hotels alone adding up to more than $495 billion.