Origin – Innovation
Entrepreneurial activity, or entrepreneurship, began to attract the attention of economists in the eighteenth century. The development of the process of scientific understanding of entrepreneurship took place in several stages.
Josef Schumpeter‘s theory of entrepreneurship (1934) seems to be the most suitable, according to which entrepreneurial activity is the ability to promote innovation on the market through risky business, which is a constant source of competitive economic restructuring and economic growth.
In contrast to the invention, innovation means not only and not so much the original idea of a new product or process, as the transformation of the idea into an innovation suitable for commercial implementation.
The driving force of the entrepreneur are his needs, interests and incentives.
Entrepreneurial interests have meaningful and motivational ways of expression. Motivational expression of entrepreneurial activity requires profit, and meaningful expression is associated with the formation, development and implementation of individual abilities.
If we talk about entrepreneurship from a subjective point of view, then entrepreneurship is a human condition. You can’t be an entrepreneur from 9 a.m. to 6 p.m. At the same time, entrepreneurship is not a profession, and it is impossible to stay in this state for a long time.
One or another person, in principle, is an entrepreneur if he implements a new original idea (creates a new combination).
When the business created by such a person begins to function independently, in the usual course, entrepreneurship disappears.
Therefore, there are not many entrepreneurs who remain entrepreneurs for decades, as well as ordinary business entities that have not become entrepreneurs at least once in their lives.
Entrepreneurship, so to speak, in its pure form is a specific process, a function of a special kind.
Against the stream
Under normal conditions of economic turnover, each business entity feels confident and behaves in the same way as others. And these other businesses usually expect this behavior from one.
In this case, the subject acts quickly and rationally. He simply adapts his actions to circumstances that usually do not change suddenly and immediately. And it does not matter in which circle of society such activity takes place.
The peasant, selling his harvest, can show the same sharpness of mind and resort to the same, if not greater, tricks as the chairman of the bank, who seeks the right decision from the general meeting of shareholders. But they can hardly be called entrepreneurs. Their actions are based on numerous precedents, which for decades, centuries, and even millennia, have shaped people’s behavior, destroying any deviation from the norm.
However, life constantly provides everyone with new opportunities, including the ability to make discoveries and inventions. Then why can’t this or that individual take advantage of these new opportunities in the same way as he used the old ones? You don’t need to be an inventor to do this. An entrepreneur and an inventor generally very rarely exist in one person. The entrepreneur tends to pursue new opportunities rather than create them.
Realizing new opportunities (idea, combination), the entrepreneur solves an unusual problem for him. If earlier he swam with the flow, then, changing the established order of things, he must swim against the stream.
Any departure from the routine is associated with certain difficulties. Where the routine ends, many individuals stop, others act in different ways.
What used to be a reliable support becomes an obstacle, and well-known factors become unknown.
It is one thing to build a new road, and quite another to use the already built one.
There is even a certain opposition of society to the attempts of an entrepreneur to introduce something new in general. Such opposition can exist in the form of both legal and political obstacles. It must be taken into account that it is more difficult to implement something new than the familiar and tested, not only from the objective side, but also for subjective reasons.
Subconsciously, due to habit or tradition, the entrepreneur himself may oppose this new, realizing that new and even qualitatively new efforts are needed to implement it. It can be noted that all entrepreneurs are business entities, but not all business entities are entrepreneurs.
A special kind of limitation
An entrepreneur is characterized by a special view of things.
Thus, the main role is played not so much by intelligence as by the will and ability to realize certain moments of reality and see them in the real light.
And when it comes to intelligence, it is important for the entrepreneur not so much its depth and breadth, as a special kind of limitation.
An entrepreneur is also characterized by the ability to move towards a set goal, not paying attention to the associated uncertainty and possible resistance.
Equally important is the entrepreneur’s ability to influence other people, using them for his own purposes.
The motives of the entrepreneur
One of the motives of the entrepreneur is the desire to create their own business, and ideally – a private empire and dynasty. His business gives the entrepreneur a sense of freedom and power.
The next motive of an entrepreneur’s activity can be determined by his will to win. On the one hand, this is the desire to fight, and on the other, the achievement of success. And although the entrepreneur’s motto is always “plus ultra”, the economic side of the matter is not always decisive. In this case, the size of the profit can play the role of indicators of success and victory, because there are simply no others for the entrepreneur.
Another motive for entrepreneurial activity can be defined as the joy of creativity.
Although the joy of creativity is also characteristic of other spheres of socially significant activity, it is for an entrepreneur that it can become an important motive of behavior. The entrepreneur acts as only in action he realizes himself, while receiving pleasure from creative activity and overcoming the difficulties that arise on his way.
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