Entrepreneurship: opportunities, preconditions, motivation
This lesson provides entrepreneur and entrepreneurship concepts, and defines what is the basis of an entrepreneur's behaviour (attitude, intention, entrepreneurial entrepreneurship, behaviour and entrepreneurial context). The business creation process and the difficulties encountered by start-ups are then considered.
Lesson time foreseen
1 hours for reading the lesson
40 minutes for on line resources
• Entrepreneurship and entrepreneur behaviour.
• The creation of new companies and the difficulties of start-up.
Who is an entrepreneur? How can you define the entrepreneur? According to Italian Civil Code (Article 2082) " An entrepreneur is who professionally exercises an organized economic activity for the purpose of production or exchange of goods or services "
The word "professionally" means that business activity cannot be sporadic or occasional but must be continuous. The word "organized" means that the entrepreneur is the one who organizes the productive factors available (human, technical and financial resources) to produce a certain output (a physical product or a service).
Here you can then talk about the different classifications that can be made of businesses, namely:
Size (SMEs , micro companies and big companies).
Entrepreneurship character (public and private companies).
Customer feature (companies B2B e B2C ).
Merchandise sector (primary, secondary, tertiary).
Legal aspect (individual and company, people and capital).
First of all we recall the classic studies that analyse and test the relationship between entrepreneurship and economic development. Making this important premise and analysing the concept of entrepreneur, you must now wonder what are the main causes of entrepreneurial behaviour.
First: Are there any pre-conditions necessary to become entrepreneurs? Or can everyone do the entrepreneur? Are there barriers to entry (perhaps only mental or psychological) to the pursuit of the "profession" of entrepreneurs? There is no mention of the barriers to entering into a business venture (capital needed to start the business) or of a technological / scientific type (together with the notions necessary to engage in certain business activities). What matters to analyse is whether mental, cultural, psychological qualities are needed to make the entrepreneur. Certainly some variables are decisive, which can make the difference between the successful entrepreneur and the one who does not succeed from his business. These variables are as follows
• Subjective factors of the entrepreneur:
o motivation of the entrepreneur;
o entrepreneurial resourcefulness;
• Objective aspects, framework:
o Entrepreneurial environment;
o Background factors
o Local/regional factors.
How do you create a new business? Where do you go from? You should always start from the opportunity to take advantage of a market opportunity through the business creation process. That is, you must always leave the market NEED. If our business venture does not meet market needs better than competitors it is perhaps the case of losing and focusing on other idea.
Furthermore, there are main difficulties encountered by start-ups: financial, bureaucratic, fiscal, regulatory. Bearing in mind that the context in which early-stage entrepreneurial activity is carried out is decisive: general difficulties in exercising early stage activities may include socio-economic and cultural disadvantages in certain contexts and absent in others.