1. DISCUSSION
THE ORIGIN OF ENTREPRENEURSHIP
The word entrepreneur etymologically
originated from a French word enterpredre, meaning to undertake. The term was
first used by a eighteenth century French economist Richard Cantillon when he
associated the risk bearing’ activity in the economy with entrepreneur. It
played an important role in England during the industrial revolution as
entrepreneur played an important role in risk taking and transformation of
resources.
Richard Cantillon first used it as a
technical economic term meaning an employer in the character of one who assumes
the risk and management of business; an undertaker of economic enterprises.
From 19th century down the memory lane, many economists like
baudeau, Jacques Turgot and Jean Bapiste Say who was credited with giving
entrepreneur a particular meaning. According to him, entrepreneurs create
value. In the 20th century, the economist most closely associated
with the term was Joseph Schumpeter. He described entrepreneurs as the
innovators who drive the “creative-destructive” process of capitalism as well
as change agents in economy.
In the 20th century,
Joseph Compete who lived between 1883 to 1950 and a reknowned economist focused
on how the entrepreneur’s drive for innovation and improvement creates upheaval
and change. Equally business expert Peter Drucker (1909-2005) took this idea
further, describing the entrepreneur as someone who actually searches for
change, responds to it, and exploits change as an opportunity.
Today, an entrepreneur is an
innovator or developer who recognizes and seizes opportunities, coverts those
opportunities into workable/ marketable ideas, adds value through time, effort,
money or skills, assumes the risks of the competitive market place to implement
these ideas, and realizes the rewards from these efforts. The entrepreneur is
the aggressive catalyst for change in the world of business, and is the
independent thinker who dares to be different in a background of common events.
2. DIFFERENTIATE BETWEEN MACRO VIEW AND MICRO
VIEW OF ENTREPRENEURSHIP
The major difference between macro
view and micro view of entrepreneurship is that macro view focuses on events
from the outside looking in while micro view concentrates on specifics from the
inside looking out. Macro view of entrepreneurship presents a broad array of
factors that relate to success or failure in contemporary entrepreneurial
ventures. These include external processes that are sometimes beyond the
control of the individual entrepreneur, for they exhibit a strong locus of
control point of view. These three schools of thought viz
1.
Environmental
2.
Financial/
capital and
3.
Displacement
represent a breakdown of the macro view.
In the other way, the micro view of entrepreneurship
examines the factors that are specific to entrepreneurship and are part of the
internal locus of control. The potential entrepreneur has the ability to direct
or adjust the outcome of each major influence. The strategic planning theory,
venture opportunity theory and entrepreneurial trait theory is presented in
this micro view.
3. DIFFERENTIATE BETWEEN MARSHALLIAN NEOCLASSICAL
ENTREPRENEURSHIP AND SCHUMPETER ENTREPRENEURSHIP THEORY
The major difference between Mashallian neo-classical
entrepreneurship and Schumpeter entrepreneurship theory is that while Joseph
Schumpeter saw an entrepreneur as an innovator or inventor who invents or
develops new and not yet tested technology, Marshal based his own theory on
contribution. According to Marshallian analysis, small contributions from a
very large number of modest entrepreneurs lead to economic progress.
Schumpeter’s entrepreneur plays the role of a revolutionary in creation of new
production functions and methods. Thus, entrepreneurs create disequilibrium and
this creative destruction is possible only under capitalistic system. In
contrast to marshal, Schumpeter’s analysis progress does depend on the great
man and as an innovator economic and social leader the entrepreneur by
definition is a monopolist.
In neoclassical analysis represented by Marshal, the
main focus is the conditions necessary to sustain an equilibrium, and
Schumpeter’s focus was to explain the progress in capitalist system by using
innovator entrepreneur’s destructive creation.
DISCUSS THE ORIGIN OF ENTREPRENEURSHIP
DIFFERENTIATE BETWEEN MACRO VIEW AND
MICRO OF ENTREPRENEURSHIP AND DIFFERENTIATE BETWEEN MARSHALLAN NEOCLASSICAL
ENTREPRENEURS THEORY
A TERM PAPER
ON ENTREPRENEURSHIP OF EDUCATION
COURSE CODE ESP 212
DEPARTMENT OF SOCIAL STUDIES EDUCATION
FACULTY OF EDUCATION
ATC01/ESUT. ENUGU