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