Introduction:

In a world where ideas drive economies, it is no wonder that innovation and entrepreneurship are often seen as inseparable bedfellows. The governments around the world are starting to realize that in order to sustain progress and improve a country’s economy, the people have to be encouraged and trained to think out-of-the-box and be constantly developing innovative products and services. The once feasible ways of doing business are no longer guarantees for future economic success!

In response to this inevitable change, some governments are rethinking the way the young are educated by infusing creative thinking and innovation in their nation’s educational curriculum. In the same vein, they are putting much emphasis on the need to train future entrepreneurs through infusing entrepreneurship components within the educational system, especially at the tertiary level.

Some countries have taken this initiative to a higher level by introducing entrepreneurship education at elementary schools and encouraging them to be future entrepreneurs when they are of age. In a series of survey funded by Kauffman Center for Entrepreneurial Leadership, it was found that nearly seven out of 10 youths (aged 14-19) were interested in becoming entrepreneurs.

Being an entrepreneur is now the choice of the new generation as compared to the preferred career choices of yesteryears such as being a doctor, lawyer or a fighter pilot. In a recent visit to the bustling city of Shanghai in China, an informal survey was carried out among Chinese youths by the author. The results of the survey showed that being an entrepreneur, especially in the field of computer and e-commerce, is perceived as a ‘cool’ career and is an aspiration for many Chinese youths Prior to the ‘opening up’ of modern China, being an entrepreneur was perceived as the outcome of one’s inability to hold a good government job and those who dared to venture, were often scorned at by their peers. Times have indeed changed.

With this change in mindset and the relative knowledge that entrepreneurs bring forth increased job creations, the awareness and academic studies of entrepreneurship have also heightened. In many tertiary institutes, many courses of entrepreneurship and innovation are being developed and offered to cater to the increasing demand. The term “entrepreneurship” has also evolved with numerous variations. The proliferation of jargons such as netpreneur, biotechpreneur, technopreneur and multipreneur are coined to keep up with the ever-changing times and business conditions that surround us.

In view of these changes, it is important that the definition of entrepreneurship be refined or redefined to enable its application in this 21st century. To put it succinctly, “Good science has to begin with good definitions (Bygrave & Hofer, 1991, p13).” Without the proper definition, it will be laborious for policymakers to develop successful programs to inculcate entrepreneurial qualities in their people and organizations within their country.

The paper will provide a summary of the definitions of entrepreneurship provided by scholars in this subject area. The author will also expand on one of the definitions by Joseph Schumpeter to create a better understanding of the definition of the term “entrepreneurship” as applied in today’s business world.

Entrepreneurship through the Years:

It was discovered that the term ‘entrepreneurship’ could be found from the French verb ‘entreprende’ in the twelfth century though the meaning may not be that applicable today. This meaning of the word then was to do something without any link to economic profits, which is the antithesis of what entrepreneurship is all about today. It was only in the early 1700’s, when French economist, Richard Cantillon, described an entrepreneur as one who bears risks by buying at certain prices and selling at uncertain prices (Barreto, 1989, Casson 1982) which is probably closer to the term as applied today.

In the 1776 thought-provoking book ‘The Wealth of Nations’, Adam Smith explained clearly that it was not the benevolence of the baker but self-interest that motivated him to provide bread. From Smith’s standpoint, entrepreneurs were the economic agents who transformed demand into supply for profits.

In 1848, the famous economist John Stuart Mill described entrepreneurship as the founding of a private enterprise. This encompassed the risk takers, the decision makers, and the individuals who desire wealth by managing limited resources to create new business ventures.

One of the definitions that the author feels best exemplifies entrepreneurship was coined by Joseph Schumpeter (1934). He stated that the entrepreneur is one who applies “innovation” within the context of the business to satisfy unfulfilled market demand (Liebenstein, 1995). In elaboration, he saw an entrepreneur as an innovator who implements change within markets through the carrying out of new combinations. The carrying out of new combinations can take several forms:

The introduction of a new good or standard of quality;

The introduction of a novel method of production; The opening of a new market; The acquisition of a new source of new materials supply; and The carrying out of the new organization in any industry.

Though the term ‘innovation’ has different meanings to different people, several writers tended to see “innovation” in the form of entrepreneurship as one not of incremental change but quantum change in the new business start-ups and the goods/services that they provide (egs, Bygrave, 1995; Bygrave & Hofer, 1991).

In the view of Drucker (1985), he perceived entrepreneurship as the creation of a new organization, regardless of its ability to sustain itself, let alone make a profit. The notion of an individual who starts a new business venture would be sufficient for him/her to be labeled as an entrepreneur. It is this characteristic that distinguishes entrepreneurship from the routine management tasks of allocating resources in an already established business organization. Though the definition tends to be somewhat simplistic in nature, it firmly attaches the nature of entrepreneurial action with risk-taking and the bearing of uncertainty by the individual (Swoboda, 1983)

In a Delphi study, Gartner (1990) found eight themes expressed by the participants that constitute the nature of entrepreneurship. They were the entrepreneur, innovation, organization creation, creating value, profit or non-profit, growth, uniqueness, and the owner-manager. The themes could be seen as a derivative and expansion of Schumpter’s earlier concept.

Expanding on Schumpeter’s Definition:

After digesting the numerous definitions of entrepreneurship, one would tend to see a strong link between these two terms: entrepreneurship and innovation. In retrospect, most of the definitions tended to be, to some extent, a re-work and expansion of Schumpeter’s definition of entrepreneurship (which is that of innovation being applied in a business context).

As defining the term of ‘innovation’ is highly debatable and would merit a paper on its own, the author has thus, for convenience, summarised the definition of innovation. Innovation can be perceived simply as the transformation of creative ideas into useful applications by combining resources in new or unusual ways to provide value to society for or improved products, technology, or services.

In the author’s opinion, the difficulties of defining “innovation” could be the reason for the quandary one finds in attempting to arrive at a clear-cut definition of the term ” Entrepreneurship”.

Take for example, if someone starts another run-of-the-mill hot dog stand in the streets of New York, will he termed as an entrepreneur? According to Drucker’s definition, he will be seen as one. However, if the above definition by Schumpeter was used as a guideline, the answer is probably ‘NO’.

Why? The core of the matter lies in what is so innovative about setting up another hot-dog stand which are in abundance in New York. On the contrary, if he is the first one to start a stand selling hot-dogs with Oriental Sweet and Sour sauce topping; he could be termed as an entrepreneur (even based on Schumpeter’s requirement) as he has done what others have not done before. In the context of entrepreneurship, creativity and innovation are key points in the whole scheme of things.

In this manner, by adding “innovative” features to a product or services and setting up a business based on these additional features to compete in the existing market, new entrants may be able to gain this competitive advantage over existing market players.

In the case of the hot-dog seller, it may be argued that his addition of Oriental Sweet and Sour sauce toppings may be seen as nondescript. This runs in contrary to some scholars’ definition of entrepreneurship as requiring quantum changes in the products/ services to be justified as being entrepreneurial (Bygrave, 1985; Bygrave & Hofer, 1991).

Consistent with creating new products for sale, someone who starts a business by providing a totally new way of serving his customers/ clients is considered to be entrepreneurial too. Though, it is often argued that there are no real new products or services in a case where one does not look to the past products and services for ideas for improvements. Thus, the notion of incremental improvements should be accepted as being innovative too.

Innovation in the business sense may not necessarily involve, in the physical sense, the introduction of a new product or service. It can be in the form of what is commonly known as creative imitations. For example, if an individual starts selling a product that is already common in his area or country, he will not be seen as being entrepreneurial. However, if he is the first to sell the same product in a virgin locale or to an untouched market segment, he will be seen as an entrepreneur in his own rights.

Take Muhammad Yunus, for example. Yunus became an entrepreneur when he started a micro-loan program for the poor villagers in a rural part of Bangladesh named Grameen, with only US$26. The loan was divided among 42 villagers to assist them to buy small items such as combs, scissors, needles and other necessities to start their own home businesses. In the past 22 years, Grameen Bank has grown with over $2 billion loans granted. It has now become a model for several micro-loan facilities.

>From the following example, Yunus created banking and lending facilities in Grameen specifically for the poor villagers. Banking and lending money activities are not new but Yunus was the first to provide such facilities in a rural part of Bangladesh and that is definitely innovation and risk-bearing on his part as a social entrepreneur. In short, innovation need not arise mainly from a new product or service but it could be an old product or service finding a new market for penetration.

An individual could be termed as an entrepreneur if he or she sells a product or service using new systems and/ or mediums of marketing, distribution or production methods as a basis for a new business venture. A good example will be Jeff Bezos, the founder of Amazon, the successful Web-based bookstore. He was one of the first to sell books on a large scale using an online store and also patented the one-click system for online buying. Though selling books is not an innovation in itself, Jeff Bezos was innovative in the use of the Internet then as a viable marketing and sales channel for selling books.

Another example from the field of e-commerce is Stuart Skorman, the founder of Reel.com. Reel.com is essentially one of the first cyber movie store with a very large inventory of over a 100 000 videos. Though setting a movie store was revolutionary then, Reel.com main distinction was being known as the first online store to expand by opening an offline store. The founder felt that by doing so, the online store could be an advertisement for the offline store and vice versa, thus strengthening this click and mortar business venture- an example of creativity and innovation applied in a profitable business context.

Conclusion:

This paper has started as an attempt to redefine the term of entrepreneurship but ended up ‘updating’ the wheel, based on the definition as proposed by Schumpeter. The paper expanded on this influential work by giving examples to illustrate what innovation in entrepreneurship was and hope that along the way, new insights were unearthed in the study of defining entrepreneurship.

In summary, the author hopes that this paper would further encourage the infusion of creative thinking and innovation within the educational system to nurture future entrepreneurs with a competitive edge. In the author’s view, the characteristics and capabilities to set up a new business venture based on doing things that have not done before should be encouraged. Innovation needs to be the cornerstone of entrepreneurship as opposed to the mere setting up of another new enterprise without implementing changes or adding features of improvements to the products and services provided and/ or its business processes.

By: Alvin Chan

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Many business owners or professionals have a hard time keeping their finances organized. Many business owners don’t know how, nor do they even take the time out to reorganize their finances. With all that needs to be done, receipts end up in a shoebox, income statements are placed on a spindle on the desk and payments due are stacked in a messy pile. One day, the owner realizes, that although the company is making money, the financial part of their organization is a mess.

1. FIRST THINGS, FIRST, ORGANIZE YOUR RECORDS

Instead of throwing everything into a box or making separate piles on the desk, carefully separate all records and place them into labeled file folders. Keep records on receipts for purchases, bills, loan statements — everything that affects your bottom line.



2. CALCULATE YOUR FINANCIAL OUTFLOW AND INFLOW

You may have a rough idea of how much money goes to which purchases or bills, a detailed list will give you an exact record of your cash flow. Write a very detailed list of your expenses down to the last cent. Once all is documented, this list gives you a starting point for cutting costs.

3. WRITE DOWN A DAILY, MONTHLY OR WEEKLY SCHEDULE OF ALL FIXED BUSINESS EXPENSES

Start with writing down salaries (yours, your employees or co-workers), insurance, leases and mortgages etc…. Do this everyday, if you spend everyday or expenses that occur everyday. Include the total amount and the due date, which can help you put aside enough money to never run short of cash when a fixed expense needs to be met.



4. WRITE DOWN ALL NON-FIXED BUSINESS-RELATED EXPENSES

Start writing expenses like equipment, entertainment or business meals. Write them down everyday for several months, you may want to keep a journal or travel log to record these expenses.

5.DON’T MIX BUSINESS WITH YOUR PERSONAL EXPENSES.

This could be a disaster & terrible mistake,especially if you don’t know how to separate the two. Putting the two types of expenses together wouldn’t make any sense either. You wouldn’t have a clear idea of what you spent your money on. It would be really hard come tax time if you don’t separate the two types of expenses. Always keep a separate list with you to jot down your personal & business expenses for everyday. Make a list or have a separate note pad with you to write them down for everyday.

6.YOU COULD START AN AUTOMATIC DIRECT DEPOSIT SAVINGS ACCOUNT

It could be good for you, which will force you to save money. It can be really good, especially for those who just want to spend, spend, spend. If you have to start small, don’t worry. Investing just $50 a month at an 8 percent yearly interest rate will grow to nearly $48,000 in 25 years.

If you’ve messed up in the past, you may have a chance to restart, turn over a new leaf & get your finances together so you can have a successful financial future, so get started today !

As your finances become more organized, not only will you experience greater control of your operations and planning, you’ll gain confidence that the streamlined foundation you’ve set up will lead to a stronger and more successful business.

By: Renee Cloud

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If starting a business is not something that you have not done before, keeping track of finances could be a very complex and sometimes an overwhelming task. Even though there are many acronyms and accounting terminology that a layman may not understand – here are few steps to get you started.

The most important step in keeping your finances, is document every expenditure and gain for a financial year. Always retain receipts and write down all non-receipted expenditures as you go. You do not need complex accounting software to do this, just use a simple journal. Keep a note of the amount spent or received, date, source and purpose. If you have a lot of cash coming in, but there is barely some leftover at the end of the month, it could be a reason that that there are many undocumented cash expenses in your account.

Another important point is, always keep business and personal finances separate. Of course as a small business owner you will need access to both sources at difficult times, however keep a track of where the money goes. Whenever you withdraw more than allocated amount from either of the accounts, be disciplined to work a little harder to pay that back as soon as possible.

Learn about the tax-deductions and exceptions in your industry. Governments give tax exceptions to some expenses for your personal services because you are the business owner. Therefore spend some time learning about the taxation rules and benefits that can affect your business both positively and negatively.

By: Roger Spence

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Business owners are faced with more than just the direct challenges that are a result of operating their businesses. Not only do business owners have to perform the duties of their specific business; but they also have the responsibility of managing any staff, and keeping track of finances.

Business finances can be a nightmare! Most business owners are very pressed for time, trying to get everything accomplished- and it could be their record keeping suffers as a result of the lack of time. Credit cards can help you resolve this situation, and actually save you time and money. You might be wondering how a credit card could save you money, considering they have interest fees and finance charges and all sorts of “hidden” expenses; but with the right business credit card, your financial record keeping will not only become easier to manage, but will in fact reduce the time it takes you to pay your expenses and saving that time will result in your ability to put your time into money-making activities.

Pay All of Your Business Expenses With a Single Credit Card

The first step to easier financial management and record keeping is to obtain a credit card and designate it your one-and-only method for paying your operating expenses. Whenever you need to purchase business supplies, make a utility payment, order lunch for staff appreciation day – you’ll whip out your new card and that’s where the charges will go.

That means you won’t pay with a personal check and have to transfer funds later to make sure you’re keeping your business and personal money separate. Using a single credit card for all your business needs means at the end of the month, you’ll receive a statement that itemizes every expense you had for the month.

Have you discovered the value in this yet? When you pay for everything on the single credit card, you’ll receive a single statement with a list of everything you’ve purchased or paid for, all in one- convenient place! You’ll easily be able to divide your expenses into categories for tax reporting purposes, and see at a glance what you’ve paid for the month versus what your business income was for the same month.

Give Key Employees a Business Credit Card

If you have office managers or other staff that have to make purchases for the business from time to time, there is a simple solution to this situation as well. Simply order additional cards in the employee’s names and all of their purchases will appear with yours on the itemized statement. Many credit card companies will divide the purchases by each of the credit cards you have on the statement, so you can also easily see at a glance which cardholder made which purchases.

Easier Checkbook Balancing

Once you’ve begun making all of your company’s purchases and expenses using your credit card, you’ll find that keeping your checkbook under control is a much easier task! Rather than having numerous entries throughout the month, you could very well have only the need to write out just one check each month to pay your credit card balance. It’s much easier to balance a checkbook with one or two transactions than one that has a few hundred checks and ATM card purchases going through each month!

Additional Benefits of Using Business Credit Cards

In addition to each of the benefits described above, using credit cards for business expenses makes it possible for you to earn rewards from various rewards programs offered through card issuers. You could be earning cash back or airline miles, among other benefits, that build up rapidly when you use your card to handle all expenses each month.

By: Brandon Ryan

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Small business payroll software handles payroll and tax filing in small business establishments. A small business company is defined as a company with 500 or less employees. Small business payroll software simplifies tedious tasks of documenting, figuring and executing a payroll; on a weekly, biweekly or monthly manner. The cost of payroll software depends on the payment duration, number of employees working, the state where the company is situated and the tax procedure followed by the state. The features in the software can also vary due to the above said reasons. Small business payroll software programs save time and manpower. Even smaller companies have full time employees only for executing payrolls, by the use of small business payroll software; they can be used in other appropriate posts.

Small business payroll software programs are continuously evolving and are becoming more and more user friendly and more accurate. The usefulness of small business payroll software is measured in terms of its features and services. Good small business payroll software will have several options and will have the flexibility to meet the growing needs of a company. Though there will be some initial time lag in inputting data, the software minimizes it with its fantastic speed of calculation. It also warns us about multiple entries of same data. The only error possible is human error which comes at the time of data inputting.

Small business payroll software can be purchased directly from the market or from online service providers. Most software makers allow you to compare their product with other products on their Web sites. Many small business payroll software providers provide a free trail, which gives you a chance to use the software and see whether it meets the needs of your company. The cost of payroll software programs vary considerably from $20 a month to many hundreds. Many small business payroll software companies assure you service and up gradation for a definite period of time.

By: Jennifer Bailey

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If you are a starting your own small business you need to be as organized and efficient as possible. One of the tools that you can use to achieve these goals is business software. Many entrepreneurs who are interested in the process of starting their own business may not be into computers or even have an aversion to technology, unfortunately in today’s business world if you don’t have the right tools which usually includes business software you and your business are dead in the water.

The good news about business software is that it is easier and in some case more affordable than ever. With much more powerful computers and many different software producing companies competing against one another, the consumer ultimately wins. No matter what industry or type of small business you have, there is business software that can help organize your expenses, analyze your sales and correspond with customers, manufacturers and other businesses.

Besides general business tools such as MS Office, there are plenty of business software available for ecommerce web sites and auction site merchants. Whether you are a one person operation or have a dozen employees, using business software can ultimately help you be more profitable.

You can find current information and up to the minute reviews and opinions online at software forums. Whether it is Microsoft products, Adobe Photoshop or any type of specialize business software, you can usually do a search and find some reviews based on using a specific software product. So before you go out and spend hundreds or even thousands of dollars on business software, do your homework and see what others have to say about it.

By: Christain Cullen

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Caffeinated Content – Members-Only Content for WordPress

Many are tempted to jump into a new business for all the wrong reasons. You may be tired of your boss, fed up with the “system,” or have great ideas you can’t implement where you are. Any of these may be legitimate, but are not necessarily reasons for quitting to start your own business, at least not prematurely. Do not use an emotional impulse or reactive urge be the basis for your business. Rather, use the security and reliability of your current position to prepare for your future consulting business.

First of all, this is not an initiation to abuse or take advantage of your present company in any way. Successful consulting, either alone or with a company, requires absolute integrity. This is a time to do your job to the best of your ability, yet start the personal preparations you need to make.

The first stage of preparation is, to use an old term, build your rolodex. It’s time to be making contacts, getting to know people and generally making yourself known as a capable and reliable professional in the marketplace. In the long term successful business careers are based and enhanced by strong professional relationships.

Work on developing the skills necessary to make your own business a success. These include networking, providing superb customer/client service, effective project management, budget & fee management, leadership, problem solving, self-starting, self-motivation, and business development. All of these capabilities can be learned and demonstrated in your present position. If you lack confidence in these areas, bolster your skills before you are on your own. Perfection is not required – just remember the support system you now have in your present company will not be available once you’re on your own.

Market research is needed. You must identify your business niche. A thorough understanding of the marketplace and your place in it are critical. The conventional wisdom is to be highly specialized, so that you can effectively target and reach those individuals and companies who need your services. There is no problem having multiple specialties, but you will be more effective with a highly focused marketing effort. This to will cost less in the long run, and be easier to reach, regardless of geographic considerations. This research, which may involve interviewing key people, can occur while you are still working.

The goal is to become an in-house consultant, which means to be your own business generator and service provider. You are a center of influence, not only in your present company, but in the business community. Once achieved the transition to your own business is a simple step out of your job and into your own business. You will already be known as a go-to professional, capable of performing services and delivering results regardless of your company affiliation.

By: Steve Kellogg

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