Brilliant Business - Entrepreneurship

By Niall McCreanor

This book provides an in-depth exploration of the world of entrepreneurship. It covers a wide range of topics, including the definition of entrepreneurship, the benefits of becoming an entrepreneur, the different approaches to entrepreneurship, and the theories that underpin it.

The book also delves into the practical aspects of starting a

• Language: English
• Publisher: Dagda Publishing
• Release date: May 1, 2023
• ISBN: 9781803526881

Niall McCreanor

Niall McCreanor is an Irish author with a love for the extraordinary. Niall has a strong marketing background having worked with some of the worlds biggest brands and Niall is also a podcaster. Feel free to get in touch with Niall via Twitter -- @niallmccreanor

Book preview

I. Introduction to Entrepreneurship

Shane and Venkataraman (2000) say that entrepreneurship is a complicated and multifaceted idea that has been looked at from many different fields of study. Aldrich and Fiol (1994) say that entrepreneurship is all about starting and running new businesses with the goal of making money for everyone involved.

Over time, scholars and business owners have given different definitions and points of view on what it means to be an entrepreneur. Schumpeter wrote in 1934 that entrepreneurs were the ones who caused creative destruction by bringing new products, services, and technologies to the market. Kirzner (1973), on the other hand, focused on the role of entrepreneurs in finding and taking advantage of market inefficiencies. Stevenson and Gumpert (1985) highlighted the importance of entrepreneurial teams in building successful businesses.

In recent years, entrepreneurship has gotten a lot of attention because it has the potential to boost economic growth, create jobs, and encourage innovation (Braunerhjelm & Acs, 2015). Small businesses, for example, which are defined as firms with fewer than 500 employees, account for almost half of the private sector workforce and 99.9% of all firms in the United States (U.S. Small Business Administration, 2022). Because entrepreneurship can help the economy grow, policymakers, academics, and the general public are becoming more and more interested in it.

Definition of entrepreneurship

Entrepreneurship is the process of finding and pursuing opportunities to create new and valuable products, services, or business models that meet unmet needs or solve existing problems in a way that is sustainable and profitable. It means taking calculated risks, gathering resources, and building networks to turn ideas into reality and create value for customers, employees, investors, and society as a whole. Entrepreneurship requires a mix of vision, creativity, leadership, persistence, and the ability to change with the times and learn from mistakes.

The importance of entrepreneurship

Shane (2018) says that entrepreneurship is a key driver of economic growth, job creation, and innovation. (Braunerhjelm & Acs, 2015) Entrepreneurs help find new business opportunities and bring new products, services, and business models to the market.

According to a report by the Global Entrepreneurship Monitor, there were approximately 582 million entrepreneurs worldwide in 2020, and around 63 million new businesses were started that year alone (Amorós et al., 2021). (Acs & Stough, 2015) These entrepreneurs not only make jobs, but they also help local economies grow by making new money and opening up new markets.

Entrepreneurs not only help the economy, but they are also very important for driving innovation and societal growth (Baumol, 2010). Entrepreneurs challenge the status quo with their creative and disruptive ideas. They break down barriers to entry and find solutions to hard problems (Schumpeter, 1934).

Entrepreneurship is also linked to other good things, like personal and professional growth (Chandler and Lyon, 2001). Starting and running a business can provide entrepreneurs with opportunities for personal growth, such as developing new skills, building confidence, and learning from failures.

Governments and policymakers around the world have recognised the importance of entrepreneurship and implemented policies and programmes to support its development (Braunerhjelm & Acs, 2015). These policies include funding for research and development, tax incentives for small businesses, and training and education programmes for entrepreneurs (Acs & Szerb, 2017).

Entrepreneurship is crucial for economic growth, job creation, and innovation. Entrepreneurs are the driving force behind new ventures and bring new products, services, and business models to the market. They also play a critical role in driving societal development and personal and professional growth. As such, it is important for governments and policymakers to support entrepreneurship development and create an environment that fosters entrepreneurial activity.

The benefits of becoming an entrepreneur

People who are willing to take the risk of starting and running their own businesses can get a lot of personal and professional benefits from doing so (Baumol, 2010). Some of the most significant benefits of becoming an entrepreneur include:

Entrepreneurship provides an opportunity to pursue one’s passion and creativity by building a business around a product or service that one truly cares about (Shane, 2018). Entrepreneurs often start businesses in areas that they are passionate about, which can lead to a greater sense of fulfilment and purpose in their work.

Entrepreneurs have greater control over their work and personal lives, as they are able to set their own schedules and work on projects that they find meaningful (Baumol, 2010). This can lead to a better work-life balance and a greater sense of autonomy.

Entrepreneurship can also provide the potential for significant financial rewards. Successful entrepreneurs can build valuable businesses that generate significant profits, leading to greater financial security and wealth (Shane, 2018).

Starting and running a business requires a range of skills, including leadership, problem-solving, and communication, among others (Chandler & Lyon, 2001). Entrepreneurs are always being asked to improve these skills, which can help them grow both personally and professionally.

(Braunerhjelm & Acs, 2015) Entrepreneurship has the potential to do good things for society by creating jobs, introducing new products and services, and helping the economy grow. Entrepreneurs who are successful can start businesses that not only make money but also help society in important ways.

Entrepreneurship can be difficult and requires a lot of hard work and dedication, but it has a lot of benefits. For those with a passion for innovation and a willingness to take risks, entrepreneurship can provide a path to personal and professional fulfilment, financial success, and a positive impact on society.

Common misconceptions about entrepreneurship

People often think of entrepreneurship as a fun and profitable way to make a living, but there are a few common misconceptions that can stop people from pursuing it. These misconceptions can prevent potential entrepreneurs from taking the leap, even if they have a great idea and the drive to succeed. Here are some of the most common myths about starting a business, along with real-world examples that show how wrong they are:

One of the most common myths about entrepreneurship is that successful entrepreneurs are born with traits like creativity, taking risks, and coming up with new ideas. However, research has shown that while some traits, such as passion and persistence, may be helpful for entrepreneurs, they alone are not sufficient for success (Cardon et al., 2009). Entrepreneurship is a learned skill that can be developed through education, training, and experience.

Real-world example: Sara Blakely, the founder of Spanx, did not have a background in fashion or business when she started her company. Instead, she came up with the idea for Spanx while working as a salesperson and trying to find a solution to the problem of visible panty lines. Despite not having a background in the industry, she taught herself about fabrics, manufacturing, and retail and built a billion-dollar company from scratch.

Another misconception about entrepreneurship is that it is only for the young. While it is true that many successful entrepreneurs start their businesses at a young age, there is no age limit for entrepreneurship (Bhide, 1992). In fact, many entrepreneurs start their businesses later in life, after gaining experience and expertise in their chosen fields.

Real-world example: Harland Sanders, the founder of KFC, did not start his franchise until he was in his sixties. Before that, he had worked in a variety of jobs, including steamboat pilot, insurance salesman, and gas station owner. He only started cooking and selling fried chicken after his retirement, but his recipe and business model proved so successful that KFC became a global fast-food giant.

Many people assume that starting a business requires a large amount of capital and that without significant financial resources, entrepreneurship is not possible. However, while access to capital can be important for starting and growing a business, there are many other factors that can impact an entrepreneur’s chances of success, such as market demand, competition, and the regulatory environment (Aldrich & Fiol, 1994).

Real-world illustration: The co-founders of Apple, Steve Jobs and Steve Wozniak, started their company with just $1,300, which they raised by selling a van and a calculator. They used this money to build the first Apple computer in Jobs’ garage, and over time, the company grew into one of the most valuable in the world.

Some people think that being an entrepreneur is a solo job and that to be successful, an entrepreneur must work alone. However, successful entrepreneurs