Fundamental Entrepreneurial Planning Processes - Assignment Example

The term which was coined back in the 1700s has evolved tremendously in terms of its definition over the years. Although many people equate it to starting up a new business economists contend that it goes beyond that and basically entails taking the risk to venture into something that will make profits. A contemporary definition of entrepreneurship is that it is a process of taking an initiative, organizing economic and social resources, and turning these resources into a profit-making venture (Casson 331).

Entrepreneurship has outstanding characteristics that make them quite distinct from other firms. A large number of entrepreneurship are started by individuals although some are team ventures as opposed to other organizations that are formed by the governments or are subsidiaries of multinational corporations. Entrepreneurship also has a high rate of growth relative to other organizations due to t the fact that the entrepreneur is in constant research to upgrade his business. In addition, entrepreneurship generates jobs for themselves and the people they employ and creates intense competition in the business world thus enhancing the productivity of a country.

An entrepreneur differs from someone working underemployment in a number of ways. Daily (405) maintains that an entrepreneur is his own boss and they are solely responsible for decisions required in the business. Besides that, they have the potential of achieving significant financial growth compared to employed individuals. Being an entrepreneur is also associated with the development of equity and equity as the individual is in charge of the whole business. Casson (339) contends that one is directly involved in business affairs and thus can make a positive contribution towards its growth.13). Are entrepreneurs made or born?

Studies about the nature of entrepreneurs have been polarized with endless debates. Some researchers argue that children born by entrepreneurial parents are more likely to make good entrepreneurs compared to others. This viewpoint underscores the argument that entrepreneurs are born and not made. Other researchers on the other hand oppose this stating that it is the family environment that influences such behavior and not the fact that they were born by entrepreneurial parents (Laser 2).