Redefinition of Entrepreneurship

OK, as a first post on this brand-new site for entrepreneurship and entrepreneurs I will start with some basic root of the subject. This basic root is a definition of that term. I am starting with this post because the right definition will give the right path for the future for existing and new entrepreneurs.

It is an important, if not the most important, component of a sucecessful market-based economy. It presents the best profession because you become responsible for your own destiny and help others at the same time with solving their problems.

When entrepreneurs start a business, they are as parents, they must nurture their company in success and in bad times.

What is entrepreneurship? How this term was defined?

Probably, in the simplest word it is defined as a process of starting a new company.

It is a process of starting a new business with identifying opportunities and allocating resources needed to take advantage of the opportunities, and creating a new venture for the purposes of providing needed products/services to customers and achieving a profit from it. This is an extended definition.

Another, but in the basis the same or similar definition of entrepreneurship tell that it is the process of discovering, evaluating, and exploiting opportunities to come up with a new business venture.

In too many definitions that I have read there is the existence of some words in relations to:

new business,
risk,
risk taking,
idea,
idea creation,
innovation,
opportunity,
new product,
new process…

That’s all OK, and probably true but not enough for defining it as a process and some kind of activities for entrepreneurs. OK, let’s start.

Each entrepreneur starts a new company. Each company is connected in some aspects with risk and risk taking. Every business relies on the idea of the entrepreneur. This assumes that an entrepreneur must start with a idea creation. It is innovation in some specific way. When we talk about recognition of the opportunity, we know that every entrepreneur seeks for the opportunity and then goes with a realization of the business. Furthermore, we can tell that every company is based on a new product or combination of the existing products with new type of the services or new type of business or technological processes.

However, what is that missing element that was not connected with entrepreneurship and entrepreneurs? PROBLEMS, PROBLEMS and also PROBLEMS are the missing element in the definition.

Now let’s start with some brief explanations:

Every company is a consequence of the entrepreneurial idea creation process. Without the idea, we don’t have business. In that idea creation processes every entrepreneur start with finding the needs of the market. The market needs is based on PROBLEMS that people from that market have and need solutions for that PROBLEMS. Because of that starting the new company is finding solutions for the PROBLEMS of the market members. That’s true! This is external PROBLEMS or PROBLEMS that are out of the business but very close connected with entrepreneurship and entrepreneurs.
Every company needs an entrepreneur who will be a driving force of the business. Entrepreneur must take decisions about the directions for the future. The process of decision-making is the continuity of the problem-solving process. These problems may be, for example, financial problems, or selling problems, process problems and so on. That’s true! This internal PROBLEMS that come from inside the company is connected with entrepreneurship and entrepreneurs.

And now what is entrepreneurship?

What we may to see here is that everything in entrepreneurship that represents constantly pressure to entrepreneurs is PROBLEMS. Because of that we can say that entrepreneurs are problem solvers, and it is a problem-solving process.

The successes rely on the effective problem-solving process for internal and external problems from entrepreneurs. Now we are living in so dynamical world where everything is changing. And because of that entrepreneurs need constantly to solve current problems and constantly to prepare for future problems.

It present process of starting a new company as a result of the ideas that may be identified with some market problems and needs for solving those problems, and constantly solving internal problems that lead to the success.