Entrepreneurship is the process of identifying, developing and bringing vision into life. The vision can be innovative ideas, opportunities, better ways of doing things. The final result of the process is the creation of new businesses formed under conditions of risk or uncertainty. Actually the definition of entrepreneurship is quite varied, but here we try to make this definition of entrepreneurship in general and colloquial language.
As we know entrepreneurship comes from the basic words of entrepreneurship and entrepreneurship consists of 2 words namely, entrepreneur which means knight, hero, warrior, superior, valiant, while another one is the word business which means working, doing something. Thus the notion of entrepreneurship in terms of the meaning of the word is a tough person who does something. But if a more detailed definition of entrepreneurship here we will take from several sources.
31 Understanding Entrepreneurship According to Experts (Complete Discussion)
Entrepreneurship has different meanings among experts or sources of reference for different gravity and emphasis.
- Richard Cantillon(1775)
for example, defining entrepreneurship as work itself (entrepreneurship). A businessman buys current goods at a certain price and sells them in the future at an uncertain price. So this definition emphasizes more on how someone is at risk or uncertainty.
- Penrose(1963)
Identification of entrepreneurial activities including opportunities in the economic system.
- Harvey Leibenstein(1968, 1979)
Entrepreneurial activities include the need to create or implement a company when all markets have not been clearly identified, or the components of the production function are not fully known.
- Arif F. Hadipranata
Entrepreneurs are people who take the risks needed to manage and manage all matters, and receive a number of financial and non-financial benefits.
- Thomas W Zimmerer
Entrepreneurship is the application innovation and creativity to solve problems and take advantage of the opportunities that others face every day.
- Andrew J Dubrin
Someone who runs and builds an innovative business.
- Robbin & Coulter
Entrepreneurship is the process by which an individual or group of individuals uses organized efforts and opportunities and creates value to grow to meet their needs and desires through innovation and uniqueness, no matter what resources are used today.
- Jean Baptista Say
An entrepreneur is an agent who combines various means of production and finds the value of a product.
- Raymond
Entrepreneurship is someone who is innovative, creative and capable of creating it to improve self-prosperity in the environment and society.
- Cashmere
Entrepreneurship is a brave soul that dares to take risks to start a business on various occasions.
- Peter F Drucker
The ability to create or create something new and different.
- Kathleen
Explain that entrepreneurs are people who run, manage, and take risks for work done during the business world.
- Acmad Sanusi
Entrepreneurship is a value that is manifested in the basic behavior of goals, tricks, tactics, propulsion, business processes and results.
- Suharto Prawiro
Entrepreneurship is a value that is needed to start business and business development.
- Frank Knight
An entrepreneur tries to solve and predict changes in the market. This explanation emphasizes the role of entrepreneurs in dealing with instability in market dynamics. An employer is required to perform all basic managerial functions such as supervision and guidance.
- Mas’ud Machfoedz & Mahmud Machfoedz
Entrepreneurial innovation is one that has the opportunity to turn into an idea that can be sold, can provide added value through effort, cost, time and skills aimed at making profits.
- Joseph Schumpeter
Entrepreneurship is one that gets the opportunity and creates an organization to pursue such opportunities.
- Stein and Jhon F.Burgess
Entrepreneurship is one that regulates, manages and dares to take risks to create new business and business opportunities.
- JB Say
Entrepreneurship is that entrepreneurs can manage various resources owned by the economy and increase low productivity is high.
- Robert D. Hirrich
Entrepreneurship is a creative process to create something of higher value by optimizing all efforts, such as devoting time, funds, psychological, and receiving appreciation for one’s satisfaction.
- Stephen Robins
Entrepreneurship is the process of pursuing various opportunities to meet the needs and desires through innovation.
- Salim Siagian
Entrepreneurship is enthusiasm, behavior and ability to respond positively to opportunities to benefit for yourself and better service to customers / society, and to create and provide more useful products by implementing more efficient and effective ways of working, through the courage to take risks , creativity, innovation and management skills.
- Joko Untoro
that entrepreneurship is a courage to make efforts to meet the needs of life carried out by someone, on the basis of ability by utilizing all the potential possessed to produce something that is beneficial to himself and others.
- In the book Entrepreneurial Finance by J.Leach Ronald Melicher
that entrepreneurship is a process of turning ideas into commercial opportunities and creating value (prices) “The process of changing ideas into commercial opportunities and creating value”
- In the book Entrepreneurship: Determinant and Policy in European-Us Comparison
that entrepreneurship is the process of perceiving, creating, and pursuing economic opportunities “the process of perceiving, creating, and pursuing economic opportunities”. But said in the book, that the process of entrepreneurship itself is difficult to measure.
- Eddy Soeryanto Soegoto
that entrepreneurship or entrepreneurship is a creative effort that is built on innovation to produce something new, has added value, benefits, creates jobs and the results are useful for others.
- Penrose (1963)
entrepreneurial activities include identifying opportunities within the economic system.
- Israel Kirzner (1979)
Entrepreneurs recognize and act on market opportunities. Entrepreneurship Center at Miami University of Ohio: Entrepreneurship as a process of identifying, developing, and bringing vision into life. The vision can be in the form of innovative ideas, opportunities, better ways of doing things.
- Entrepreneurship according to Presidential Instruction of the Republic of Indonesia (INPRES) No. 4 of 1995
about the National Movement to Promote and Cultivate Entrepreneurs is the spirit, attitude, behavior and ability of a person to handle businesses and or activities that lead to efforts to create, implement new ways of working, technology and products by increasing efficiency in order to provide better services and or obtain greater profits.
- Gitosardjono
there are six essence of entrepreneurship, namely: a. Entrepreneurship is the ability to create something new and different. b. Entrepreneurship is a value embodied in behavior that is made into a resource, a driving force, goals, strategies, processes and business results. c. Entrepreneurship is a process of doing something creative and innovative that is useful in providing more value. d. Entrepreneurship is a process of applying creativity and innovation in solving problems and finding opportunities to improve, and develop business life.
- Indonesia Dictionary
Entrepreneur is a person who is smart or talented to recognize new products, determine new ways of production, arrange operations to hold new products, manage capital operations, and market it
People who carry out entrepreneurial activities are called entrepreneurs. The question arises why an entrepreneur (entrepreneur) has a way of thinking that is different from people in general. They are motivated, calling souls, perceptions and emotions related to values, attitudes and behavior as superior beings.
Entrepreneurship Objectives
- Increase the number of eligible entrepreneurs.
- Realizing the ability of entrepreneurship and stability to produce progress and prosperity of the community.
- Foster the spirit of attitude, behavior, and entrepreneurial abilities in a capable, reliable, and superior society.
- Foster’s entrepreneurship and awareness oriented are strong for the public.
Characteristics and Nature of Entrepreneurship
To be able to achieve the expected goals, then everyone needs characteristics and also has an entrepreneurial nature. The characteristics of an entrepreneur are:
- Confidence
- Oriented tasks and results
- Dare to take risks
- Leadership
- Originality
- Future oriented
- Honest and persevering
The characteristics of an entrepreneur are:
- Have confidence, independence, individuality, optimism.
- Always strive to achieve, profit-oriented, have perseverance and perseverance, have a strong determination, hard worker, energetic and have the initiative.
- Having the ability to take risks and like challenges.
- Acting as a leader, able to get along with others and love advice and constructive criticism.
- Has high innovation and creativity, is flexible, versatile and has a wide business network.
- Perceptions and perspectives about the future are oriented. Having a belief that life is the same as hard work.
Characteristics of Entrepreneurs
The attitude and characteristic elements that must be possessed by an entrepreneur are:
- High Achievement Motive
- Always a perspective
- Have High Creativity
- Have High Innovative Behavior
- Always Commit to Work, Have a Work Ethic and Responsibility
- Independent or Not Relief
- Dare to Face Risk
- Always looking for opportunities
- Have a Leadership Soul
- Have Managerial Ability
- Have the Personal Skills of a Reliable Entrepreneur.
Entrepreneurial Characteristics
Furthermore, Bygrave in Buchari Alma (2009: 57) gives an overview of some of the characteristics of entrepreneurship known as the 10 D, namely:
- Dream, an entrepreneur has a desire for his personal and business future and has the ability to realize his dreams.
- Decisiveness, an entrepreneur is a person who does not work slowly. They make the right decisions, but they are calculating.
- Doers, an entrepreneur will immediately follow up on the decision he made. They carry out activities as quickly as possible and do not delay a good opportunity in their business.
- Determination, An entrepreneur carries out his activities with high attention and responsibility and does not give up.
- Dedication, an entrepreneur who is dedicated to his business, sometimes sacrificing the interests of his family for a while.
- Devotion, an entrepreneur loves business and the products it produces. This is what drives its success in selling the products it produces.
- Details, Entrepreneurs pay attention to important factors in detail. They do not want to ignore the small factors that can hamper their business activities.
- Destiny, an entrepreneur is responsible for the fate and goals he wants to achieve. He is a free person and does not want to depend on others.
- Dollars, an entrepreneur does not prioritize wealth. The motivation isn’t just a matter of money. Money is considered as a measure of the success of his business. He thinks if successful in business, he deserves a profit, bonus or prize.
- Distribute, entrepreneurs are willing to distribute ownership in their business to their people of trust, namely people who are critical and want to be invited to achieve success in the business field.
Stage – Entrepreneurship Stage
The following are the steps undertaken by an entrepreneur.
- Start stage
The stage where someone who intends to make an effort to prepare everything that is needed, starts by looking at new business opportunities that are possible whether opening a new business, making an acquisition, or doing “franchising”. This stage also selects the type of business that will be carried out if it is in agriculture, industry or services.
In this phase an entrepreneur manages various aspects related to his business, including aspects: finance, human resources, ownership, organization, leadership including how to take risks and make decisions, marketing, and evaluating.
- The stage of maintaining business
The stage in which the entrepreneur is based on the results that have been achieved to analyze the progress made for follow-up in accordance with the conditions encountered.
- Entrepreneurial attitude
From the list of characteristics and characteristics of entrepreneurs, we can identify the attitudes of entrepreneurs that can be removed from daily activities, as follows:
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- Discipline
- High commitment
- Honest
- Creative and Innovative
- Mandiri
- Realistic
Characteristics of Excellent / Successful Entrepreneurship
Being a professional entrepreneur must meet tough criteria. The characteristics of the two criteria are as follows:
Tough Entrepreneurial Characteristics and Capabilities
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- Thinking and acting strategically, adaptive to changes in trying to find profit opportunities including those that contain rather large risks and in overcoming problems.
- Always strive to benefit through various advantages in satisfying subscriptions.
- Trying to recognize and control the strengths and weaknesses of the company (and its entrepreneurs) and increase capabilities with internal control systems.
- Always trying to improve the ability and resilience of the company, especially with fostering motivation and enthusiasm for work and capital fertilization.
Superior Entrepreneurial Characteristics and Capabilities
- Dare to take risks and be able to calculate and try to avoid it.
- Always strive to achieve and produce better service for customers, owners, suppliers, workers, community, nation and country.
- Anticipatory to change and accommodating to the environment.
- Creatively seek and create market opportunities and increase productivity and efficiency.
- Always trying to improve the excellence and image of the company through innovation in various fields.
Factors of Failure in Entrepreneurship
According to Zimmerer (in Suryana, 2003: 44-45) there are several factors that cause entrepreneurial failure in running his new business:
- Inept in managerial
Competent or not having the ability and knowledge to manage a business is a major factor that makes a company less successful.
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- Less experience in coordinating the ability, skills to manage human resources, and the ability to integrate company operations.
- Lack of financial control. So the company can work well, the most important factor in finance is to maintain cash flow. Adjust expenses and receipts carefully. Mistakes in maintaining operating cash flow cause the company and result in the company not going well.
- Failed to plan.
Planning is the starting point of an activity, failure in planning will experience difficulties in implementation.
- Inadequate location
Strategic business location is a factor that determines business success. Strategic location can result in the company not difficult to operate because it is less efficient.
- Lack of equipment supervision
Supervision is closely related to efficiency and effectiveness. Lack of supervision leads to inefficient and ineffective use.
- A lack of earnest attitude in trying
An attitude that is half of the business will result in efforts to become unstable and fail. With a half-hearted attitude, the possibility of failing to be great.
- Inability to make entrepreneurial transitions / transitions
Entrepreneurs are not ready to face and make changes, there will be successful entrepreneurs. Success in business can only be achieved if change is brave and is able to make a transition every time.
