Entrepreneurial Behavior: Transforming Innovative Ideas into Entrepreneurial Products
Module 1.1
Entrepreneurial Behavior
I. Introduction
Have you ever wanted to start your own business? This unit will give you the opportunity to consider and reflect on the personal aspects involved in transforming an innovative idea into an entrepreneurial product. You will also learn how to identify the requirements for building an appropriate entrepreneurial team. There are literally dozens and dozens of different definitions of ‘the entrepreneur’ and the concept of ‘entrepreneurship’. We have explicitly linked entrepreneurship to the capability for exploiting successfully innovative ideas in a commercially competitive market. Leaving to one side the fact that individuals working in the public and non-profit sectors can be very enterprising, in historic and policy making terms entrepreneurship refers to business behavior related to innovation and growth. For our purposes, entrepreneurs may be broadly defined as people who own and manage a business with the intention of expanding that business by applying some form of innovation and with the leadership and managerial capacity for achieving their goals, generally in the face of strong competition from other firms, large and small.
II. Economic function of the entrepreneur
Broadly, entrepreneurs have two vital roles to play in the economy (1) to introduce new ideas and (2) to energize business processes.
[pic]
Figure 1. Business competition chain
Here, the role of the entrepreneur is to conceive a business idea in terms of an innovation to be brought successfully to the market and to find the wherewithal to make this happen. The entrepreneur does not necessarily need to have the design, production or delivery skills (this is the function of the firm) nor to shoulder all or most of the risk (this is often assumed by the providers of finance or investors). Indeed, the notion of the entrepreneur as a risk-taking trader, began to be challenged early on by the view of the entrepreneur as
Entrepreneurial Behavior
I. Introduction
Have you ever wanted to start your own business? This unit will give you the opportunity to consider and reflect on the personal aspects involved in transforming an innovative idea into an entrepreneurial product. You will also learn how to identify the requirements for building an appropriate entrepreneurial team. There are literally dozens and dozens of different definitions of ‘the entrepreneur’ and the concept of ‘entrepreneurship’. We have explicitly linked entrepreneurship to the capability for exploiting successfully innovative ideas in a commercially competitive market. Leaving to one side the fact that individuals working in the public and non-profit sectors can be very enterprising, in historic and policy making terms entrepreneurship refers to business behavior related to innovation and growth. For our purposes, entrepreneurs may be broadly defined as people who own and manage a business with the intention of expanding that business by applying some form of innovation and with the leadership and managerial capacity for achieving their goals, generally in the face of strong competition from other firms, large and small.
II. Economic function of the entrepreneur
Broadly, entrepreneurs have two vital roles to play in the economy (1) to introduce new ideas and (2) to energize business processes.
[pic]
Figure 1. Business competition chain
Here, the role of the entrepreneur is to conceive a business idea in terms of an innovation to be brought successfully to the market and to find the wherewithal to make this happen. The entrepreneur does not necessarily need to have the design, production or delivery skills (this is the function of the firm) nor to shoulder all or most of the risk (this is often assumed by the providers of finance or investors). Indeed, the notion of the entrepreneur as a risk-taking trader, began to be challenged early on by the view of the entrepreneur as