A perfectly competitive market
I investigate to write about entrepreneurship, its history, culture and women entrepreneurs and their possibilities in Denmark. The project should help to understand entrepreneurship better and give an overview of the difficulties that the ethnic women came across during starting a business. I will look at the history and culture of entrepreneurs in a theoretical context, and analyzing the situation of the entrepreneurs in the European Union by the Global Entrepreneruship Monitor reports. By interviewing 5 female entrepreneurs with ethnic background would like make an empirical study.
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Overall, I would like to come to a conclusion and recommendations according to how Denmark can improve services for ethnic women entrepreneurs. The main book, I choose is Paul Burns – Entrepreneurship and Small Business (2001). It gave a great theoretical knowledge about entrepreneurship, even though it was a bit hard to read. The new era of management (2006) book from R. Daft give me a better understanding about the types of entrepreneurs. I also used some book from great authors, it can see in the literature list.
Global entrepreneurship monitor’s reports (2008 Executive report and 2007 Report on women entrepreneurs) were a great help to get relevant data. Methodology The theoretical part is going to focus on the history and culture of entrepreneurs by books based on entrepreneurship. To get an overview about the situation of entrepreneurs in the EU and in Denmark I am going to use the GEM reports. I choose to make interviews with 5 women entrepreneurs with ethnic background in Denmark and subjected the results to analysis. Introduction
In the knowledge-based economy, innovation is the key driver of success. Metropolitan areas in many countries have increasingly turned into multi-cultural societies. Ethnic entrepreneurship and, increasingly, female entrepreneurship have become popular concepts in modern multi-cultural society. In a modern “multi-color” city, such as Copenhagen, ethnic and female entrepreneurship tend to become an indigenous and significant part of the local economy. At the same time it is difficult to identify and tap potential business opportunities in this competitive world.
Entrepreneurship Entrepreneurship is considered to be the combination of entrepreneur and enterprise. Organizing on enterprise is described as entrepreneurship. Here the enterprise is defined as a unit of economic activates or an economic organization specially a business organization. Definition of entrepreneur: “Someone who assumes the financial risk of the initiation, operation and management of a business” One who undertakes a business venture by combining the resources for production is called on entrepreneur.
Therefore entrepreneur is described as an individual who take risk to organize a business to make his career. According to Schumpeter entrepreneurship can be defined as a “Creative activity, the entrepreneur being an innovator who introduces something now into the economy a new method of production not yet tested by experience in the branch of Manufacturing Concern a product with which the consumers are not familiar, a new source of raw material or of a new market lither to unexploited and of similar innovation”.
Entrepreneurship refers to be developed and planned through creation of opportunities, extending facilities, allowing incentives and developing sensitiveness to the factors in a person. Entrepreneurship is not inborn quality but made and any one can become entrepreneur. It is the individuals who respond to external opportunities. Entrepreneur is a person who has already started an enterprise or is in the process of starting an enterprise. Entrepreneur is one who organizes Manages and assumes the risk of a business enterprise.
He is an action oriented, highly motivated individual with strong desire to excel who takes risk to achieve goals. Entrepreneurs are people who have the abilities to see and evaluate business opportunities to gather necessary resources to take advantage of them and initiate appropriate action to ensure success. Entrepreneur is an individual responsible for the operation for business including choice of the product, mobilization, of resources decision on product, price and market employment of labors expanding or reducing the scope of his businesses.
Entrepreneur is defined as an individual who for casts’ future demand for product or service and arranges a business enterprise to respond to their demand. A successful entrepreneur should be in a position to identify explore and select an attractive business opportunity and plan his activities accordingly to ensure success. History of entrepreneurship Entrepreneurs have been around since the beginning of time. But the term was first introduced by a French economist by the name of Richard Cantillon in the 18th century.
In short it can be said that the first concept of entrepreneurship from Cantillon emphasis on taking risk to venture into a business. Van Praag (2005) divides entrepreneurship concept into five different groups which are classical approach, neoclassical approach, Schumpeterian, Knightian, and neo-Austrian approach. The classical approach According to van Praag (2005) the famous French economist, Jean-Baptiste Say (1767-1832) seemed to be the first expert who added managerial role into entrepreneur characteristics.
The managerial role consist of getting involved in combining and coordinating factors which influence production process in order to accommodate the unexpected and overcome problems. In summary, the characteristics of entrepreneurs according to Say is the person who is in charge of production, distribution and consumption activities; a coordinator in market and firm level; a leader and manager within the firm, problem solver and also a risk taker.
Therefore, according to Landstrom, entrepreneurship is defined as the combining of the means of production process into an organism. The neoclassical approach The neoclassical era is famous with the concept of equilibrium theory in which supply equals to demand in a perfectly competitive market, therefore during this era economists believed that there is no entrepreneurial profit and entrepreneurship activities do not have a room to grow since innovation could destroy the stability of economic condition.
The example of famous economist during this era would be Alfred Marshall (1842-1924) which pointed that entrepreneur has the characteristics of taking all responsibility and gain full control, coordinate supply and demand on the market as well as capital and labour within the firm, undertake risks, act as a manager as well as employer, opportunity seeker in order to minimize costs.
Furthermore, from the same author Marshall stated that a successful entrepreneur will need general ability which are being able to do multitask in one time, have everything ready in time, act promptly and show resource when something goes wrong, flexible to changes, steady and trustworthy; specialized abilities which are knowledge of trade, ability to forecast, taking risks and spot opportunities in the market; act as a nature leader of men while performing as an employer; and lastly a good fortune and capital.
Even though Marshall pointed out a list of entrepreneur’s characteristics, however in neoclassical era, a definition of entrepreneurship was not explained. Khalil agreed that neoclassical theory did not provide explanation on entrepreneurship due to a misleading dichotomy that supports the theory between everyday action and entrepreneurial action. Schumpeterian Even though Schumpeterian is classified in neoclassical era, however Joseph Schumpeter (1883-1950) describes entrepreneurship as promoting a change in existing situation.
Schumpeter set a theory that the key feature of entrepreneurship is innovation for market place, which would lead to creation of new demand, destroy the existing market then create a new equilibrium in the market. The Schumpeterian entrepreneurship brings about technology break-through which leads to ‘creative destruction’. Schumpeter mentioned that innovation can be found in several forms such as introduction of a new or improvement in quality of the product, introduction of new method in production, opening a new market, capturing a new source of raw materials supply, and accomplish a new organization in any industry .
In today situation, innovation can be related to Research and Development which could bring fresh ideas for the market. Furthermore, it is stated that entrepreneurship could contribute to the reduction of unemployment problem, important for economic growth, job creation and renewal (Acs 1999). It is proven by Minniti & Bygrave, that the United States has achieved the highest economic performance during last ten years by fostering and promoting entrepreneurial activities.
The characteristics of entrepreneur, according to Schumpeter is a person that has desire to find a private kingdom, willing to conquer and has the joy of creation, or it can be translated as having desire for power and independence, willing to succeed and satisfaction of getting things done. Furthermore, it is also stated that entrepreneurs are not money or profit driven but valued profit as the indicator for success business and act as a leader in a firm.