Entrepreneurship

The process, brought about by individuals, of identifying new opportunities and

converting them into marketable products or services.
Field of entrepreneurship.
1) The study of sources of opportunities.
2) The process of discovery, evaluation and exploitation of opportunities.
3) The set of individuals who discover evaluate and exploit those opportunities.

Two main sources of market opportunities

1) What may later be called an opportunity may appear as imprecisely defined market
needs, or unemployed resources or capacities. Imprecisely defined market needs are
the source of market-pulled opportunities. Prospective customers may or may not be
able to articulate their needs, interests and problems.
2) Under-utilised or unemployed resources, as well as new technologies or capabilities,
may also offer possibilities to create new value for customers
The role of the entrepreneur
1) To recognise these needs and to develop an offer in which customers will perceive
some value.
2) Identify resources that are not optimally used, then seek a better use or combination of
these in a specific market (market-pushed opportunities).

Two levels of the environment that exert an influence on the emergence of a business venture.
1) Community level- both the number of organisations in an industry and the strength of
the relationship between these organisations are important to entrepreneurs.
Individuals trying to create business ventures in a population with high density will
find more opportunities for acquiring effective knowledge and creating extensive
social networks, but they will also encounter more intensive competition.
2) Societal level- two aspects shape the environment for organisation
a. Cultural norms and values- changing it will alter entrepreneurial intentions
and the willingness of resource providers to support new ventures.
b. Government activities and policies- create new institutional structure for
entrepreneurial action, encouraging some activities and impeding others.

Creative Destruction
I.

The process of simultaneous emergence and disappearance of technologies,

products and firms in the marketplace as a result of innovation. The new

II.

destroys the old.

Entrepreneurs are central to the process of creative destruction
a. they identify opportunities
b. bring the new technologies and new concepts into active commercial
use