| Introduction:In a world where ideas drive | | | | Schumpeter's Definition:After digesting the |
| economies, it is no wonder that innovation | | | | numerous definitions of entrepreneurship, one |
| and entrepreneurship are often seen as | | | | would tend to see a strong link between these |
| inseparable bedfellows. The governments | | | | two terms: entrepreneurship and innovation. |
| around the world are starting to realize that | | | | In retrospect, most of the definitions tended |
| in order to sustain progress and improve a | | | | to be, to some extent, a re-work and |
| country's economy, the people have to be | | | | expansion of Schumpeter's definition of |
| encouraged and trained to think | | | | entrepreneurship (which is that of innovation |
| out-of-the-box and be constantly developing | | | | being applied in a business context).As |
| innovative products and services. The once | | | | defining the term of 'innovation' is highly |
| feasible ways of doing business are no longer | | | | debatable and would merit a paper on its own, |
| guarantees for future economic success!In | | | | the author has thus, for convenience, |
| response to this inevitable change, some | | | | summarised the definition of innovation. |
| governments are rethinking the way the young | | | | Innovation can be perceived simply as the |
| are educated by infusing creative thinking | | | | transformation of creative ideas into useful |
| and innovation in their nation's educational | | | | applications by combining resources in new or |
| curriculum. In the same vein, they are | | | | unusual ways to provide value to society for |
| putting much emphasis on the need to train | | | | or improved products, technology, or |
| future entrepreneurs through infusing | | | | services.In the author's opinion, the |
| entrepreneurship components within the | | | | difficulties of defining "innovation" could |
| educational system, especially at the | | | | be the reason for the quandary one finds in |
| tertiary level.Some countries have taken this | | | | attempting to arrive at a clear-cut |
| initiative to a higher level by introducing | | | | definition of the term " |
| entrepreneurship education at elementary | | | | Entrepreneurship".Take for example, if |
| schools and encouraging them to be future | | | | someone starts another run-of-the-mill hot |
| entrepreneurs when they are of age. In a | | | | dog stand in the streets of New York, will he |
| series of survey funded by Kauffman Center | | | | termed as an entrepreneur? According to |
| for Entrepreneurial Leadership, it was found | | | | Drucker's definition, he will be seen as one. |
| that nearly seven out of 10 youths (aged | | | | However, if the above definition by |
| 14-19) were interested in becoming | | | | Schumpeter was used as a guideline, the |
| entrepreneurs.Being an entrepreneur is now | | | | answer is probably 'NO'.Why? The core of the |
| the choice of the new generation as compared | | | | matter lies in what is so innovative about |
| to the preferred career choices of | | | | setting up another hot-dog stand which are in |
| yesteryears such as being a doctor, lawyer or | | | | abundance in New York. On the contrary, if he |
| a fighter pilot. In a recent visit to the | | | | is the first one to start a stand selling |
| bustling city of Shanghai in China, an | | | | hot-dogs with Oriental Sweet and Sour sauce |
| informal survey was carried out among Chinese | | | | topping; he could be termed as an |
| youths by the author. The results of the | | | | entrepreneur (even based on Schumpeter's |
| survey showed that being an entrepreneur, | | | | requirement) as he has done what others have |
| especially in the field of computer and | | | | not done before. In the context of |
| e-commerce, is perceived as a 'cool' career | | | | entrepreneurship, creativity and innovation |
| and is an aspiration for many Chinese youths | | | | are key points in the whole scheme of |
| Prior to the 'opening up' of modern China, | | | | things.In this manner, by adding "innovative" |
| being an entrepreneur was perceived as the | | | | features to a product or services and setting |
| outcome of one's inability to hold a good | | | | up a business based on these additional |
| government job and those who dared to | | | | features to compete in the existing market, |
| venture, were often scorned at by their | | | | new entrants may be able to gain this |
| peers. Times have indeed changed.With this | | | | competitive advantage over existing market |
| change in mindset and the relative knowledge | | | | players.In the case of the hot-dog seller, it |
| that entrepreneurs bring forth increased job | | | | may be argued that his addition of Oriental |
| creations, the awareness and academic studies | | | | Sweet and Sour sauce toppings may be seen as |
| of entrepreneurship have also heightened. In | | | | nondescript. This runs in contrary to some |
| many tertiary institutes, many courses of | | | | scholars' definition of entrepreneurship as |
| entrepreneurship and innovation are being | | | | requiring quantum changes in the products/ |
| developed and offered to cater to the | | | | services to be justified as being |
| increasing demand. The term | | | | entrepreneurial (Bygrave, 1985; Bygrave & |
| "entrepreneurship" has also evolved with | | | | Hofer, 1991).Consistent with creating new |
| numerous variations. The proliferation of | | | | products for sale, someone who starts a |
| jargons such as netpreneur, biotechpreneur, | | | | business by providing a totally new way of |
| technopreneur and multipreneur are coined to | | | | serving his customers/ clients is considered |
| keep up with the ever-changing times and | | | | to be entrepreneurial too. Though, it is |
| business conditions that surround us.In view | | | | often argued that there are no real new |
| of these changes, it is important that the | | | | products or services in a case where one does |
| definition of entrepreneurship be refined or | | | | not look to the past products and services |
| redefined to enable its application in this | | | | for ideas for improvements. Thus, the notion |
| 21st century. To put it succinctly, "Good | | | | of incremental improvements should be |
| science has to begin with good definitions | | | | accepted as being innovative too.Innovation |
| (Bygrave & Hofer, 1991, p13)." Without the | | | | in the business sense may not necessarily |
| proper definition, it will be laborious for | | | | involve, in the physical sense, the |
| policymakers to develop successful programs | | | | introduction of a new product or service. It |
| to inculcate entrepreneurial qualities in | | | | can be in the form of what is commonly known |
| their people and organizations within their | | | | as creative imitations. For example, if an |
| country.The paper will provide a summary of | | | | individual starts selling a product that is |
| the definitions of entrepreneurship provided | | | | already common in his area or country, he |
| by scholars in this subject area. The author | | | | will not be seen as being entrepreneurial. |
| will also expand on one of the definitions by | | | | However, if he is the first to sell the same |
| Joseph Schumpeter to create a better | | | | product in a virgin locale or to an untouched |
| understanding of the definition of the term | | | | market segment, he will be seen as an |
| "entrepreneurship" as applied in today's | | | | entrepreneur in his own rights.Take Muhammad |
| business world.Entrepreneurship through the | | | | Yunus, for example. Yunus became an |
| Years:It was discovered that the term | | | | entrepreneur when he started a micro-loan |
| 'entrepreneurship' could be found from the | | | | program for the poor villagers in a rural |
| French verb 'entreprende' in the twelfth | | | | part of Bangladesh named Grameen, with only |
| century though the meaning may not be that | | | | US$26. The loan was divided among 42 |
| applicable today. This meaning of the word | | | | villagers to assist them to buy small items |
| then was to do something without any link to | | | | such as combs, scissors, needles and other |
| economic profits, which is the antithesis of | | | | necessities to start their own home |
| what entrepreneurship is all about today. It | | | | businesses. In the past 22 years, Grameen |
| was only in the early 1700's, when French | | | | Bank has grown with over $2 billion loans |
| economist, Richard Cantillon, described an | | | | granted. It has now become a model for |
| entrepreneur as one who bears risks by buying | | | | several micro-loan facilities.>From the |
| at certain prices and selling at uncertain | | | | following example, Yunus created banking and |
| prices (Barreto, 1989, Casson 1982) which is | | | | lending facilities in Grameen specifically |
| probably closer to the term as applied | | | | for the poor villagers. Banking and lending |
| today.In the 1776 thought-provoking book 'The | | | | money activities are not new but Yunus was |
| Wealth of Nations', Adam Smith explained | | | | the first to provide such facilities in a |
| clearly that it was not the benevolence of | | | | rural part of Bangladesh and that is |
| the baker but self-interest that motivated | | | | definitely innovation and risk-bearing on his |
| him to provide bread. From Smith's | | | | part as a social entrepreneur. In short, |
| standpoint, entrepreneurs were the economic | | | | innovation need not arise mainly from a new |
| agents who transformed demand into supply for | | | | product or service but it could be an old |
| profits.In 1848, the famous economist John | | | | product or service finding a new market for |
| Stuart Mill described entrepreneurship as the | | | | penetration.An individual could be termed as |
| founding of a private enterprise. This | | | | an entrepreneur if he or she sells a product |
| encompassed the risk takers, the decision | | | | or service using new systems and/ or mediums |
| makers, and the individuals who desire wealth | | | | of marketing, distribution or production |
| by managing limited resources to create new | | | | methods as a basis for a new business |
| business ventures.One of the definitions that | | | | venture. A good example will be Jeff Bezos, |
| the author feels best exemplifies | | | | the founder of Amazon, the successful |
| entrepreneurship was coined by Joseph | | | | Web-based bookstore. He was one of the first |
| Schumpeter (1934). He stated that the | | | | to sell books on a large scale using an |
| entrepreneur is one who applies "innovation" | | | | online store and also patented the one-click |
| within the context of the business to satisfy | | | | system for online buying. Though selling |
| unfulfilled market demand (Liebenstein, | | | | books is not an innovation in itself, Jeff |
| 1995). In elaboration, he saw an entrepreneur | | | | Bezos was innovative in the use of the |
| as an innovator who implements change within | | | | Internet then as a viable marketing and sales |
| markets through the carrying out of new | | | | channel for selling books.Another example |
| combinations. The carrying out of new | | | | from the field of e-commerce is Stuart |
| combinations can take several forms:The | | | | Skorman, the founder of is essentially one |
| introduction of a new good or standard of | | | | of the first cyber movie store with a very |
| quality;The introduction of a novel method of | | | | large inventory of over a 100 000 videos. |
| production;The opening of a new market;The | | | | Though setting a movie store was |
| acquisition of a new source of new materials | | | | revolutionary then, main distinction was |
| supply; andThe carrying out of the new | | | | being known as the first online store to |
| organization in any industry.Though the term | | | | expand by opening an offline store. The |
| 'innovation' has different meanings to | | | | founder felt that by doing so, the online |
| different people, several writers tended to | | | | store could be an advertisement for the |
| see "innovation" in the form of | | | | offline store and vice versa, thus |
| entrepreneurship as one not of incremental | | | | strengthening this click and mortar business |
| change but quantum change in the new business | | | | venture- an example of creativity and |
| start-ups and the goods/services that they | | | | innovation applied in a profitable business |
| provide (egs, Bygrave, 1995; Bygrave & Hofer, | | | | context.Conclusion:This paper has started as |
| 1991).In the view of Drucker (1985), he | | | | an attempt to redefine the term of |
| perceived entrepreneurship as the creation of | | | | entrepreneurship but ended up 'updating' the |
| a new organization, regardless of its ability | | | | wheel, based on the definition as proposed by |
| to sustain itself, let alone make a profit. | | | | Schumpeter. The paper expanded on this |
| The notion of an individual who starts a new | | | | influential work by giving examples to |
| business venture would be sufficient for him | | | | illustrate what innovation in |
| her to be labeled as an entrepreneur. It is | | | | entrepreneurship was and hope that along the |
| this characteristic that distinguishes | | | | way, new insights were unearthed in the study |
| entrepreneurship from the routine management | | | | of defining entrepreneurship.In summary, the |
| tasks of allocating resources in an already | | | | author hopes that this paper would further |
| established business organization. Though the | | | | encourage the infusion of creative thinking |
| definition tends to be somewhat simplistic in | | | | and innovation within the educational system |
| nature, it firmly attaches the nature of | | | | to nurture future entrepreneurs with a |
| entrepreneurial action with risk-taking and | | | | competitive edge. In the author's view, the |
| the bearing of uncertainty by the individual | | | | characteristics and capabilities to set up a |
| (Swoboda, 1983)In a Delphi study, Gartner | | | | new business venture based on doing things |
| (1990) found eight themes expressed by the | | | | that have not done before should be |
| participants that constitute the nature of | | | | encouraged. Innovation needs to be the |
| entrepreneurship. They were the entrepreneur, | | | | cornerstone of entrepreneurship as opposed to |
| innovation, organization creation, creating | | | | the mere setting up of another new enterprise |
| value, profit or non-profit, growth, | | | | without implementing changes or adding |
| uniqueness, and the owner-manager. The themes | | | | features of improvements to the products and |
| could be seen as a derivative and expansion | | | | services provided and/ or its business |
| of Schumpter's earlier concept.Expanding on | | | | processes. |