Lecture 2 - Important Concepts in Entrepreneurship
Lecture 2 (Slide 3):
1) Before we start talking about the History of Entrepreneurship, it is important that we talk about these three vital concepts before we move forward.
2) One definition of entrepreneurship is the one that we’ve discussed previously in our lecture, that it is all about doing your own business.
3) Entrepreneurship is also known as the process to find solutions for different problems. ‘
4) Entrepreneur is the one that finds that finds the solutions.
5) Just like these, you might have come across different definitions of enterprise in dictionaries, however it is the willingness to discover non-routine actions in a dynamic way and the willingness to undertake new ventures or initiative.
6) So let’s see how old is the history of entrepreneurship, entrepreneur and the mankind enterprise in the next following slides.
Lecture 2 (Slide 5):
1) Our history begins when we were hunter gatherers, as in the early ages of existence humans were hunter gatherers as they lived in jungles, moved around in family, fought against the nature for survival and there was a great deal of reliance on hunting skills.
2) During that period, people learned a lot of new things such as fire, tool making, food storing, tribes and farming because of have an enterprising nature.
3) After they discovered what farming was, it became the big economic/green revolution. Mankind moved from the era of hunter gathers toward the agriculture societies.
4) As surplus products were being generated, some enterprise minded people thought of trading. If we look back at the history of enterprise, we will come across merchant entrepreneurs. If we head over to the internet and search The Great Silk Road, it will help us understand how the merchant entrepreneurs used their surplus and sold it from one place to another.
5) In the meanwhile, another enterprise mind invented the steam engine, which was the beginning of the industrial revolution. The industrial revolution is also known as the era of manufacturing. Moreover, it is also said as the era of establishment of big business units as well as the era of craft production to mass production.
6) All of this will help you in understanding how enterprise mindset people introduced mining, railroads, textile units, weapon industries and scientific inventions. Today all the things that we do or own are the result of the industrial revolution. Large Units were being manufactured when this revolution took place and small units were declining.
7) After understanding this decline, the UK government established a committee of Inquiry on Small firms, and first Bolton report was published in 1971 that covered the eight important economics functions that small business perform for efficient economies.
8) Likewise, USA government also established an agency called Small Business Administration to preserve the small sector.
4. ENTREPRENUERSHIP, ENTREPRENUER &
ENTERPRISE
Entrepreneurship is the process of
finding solutions to different
problems.
Entrepreneur is the person who is a
solution provider.
Willingness to undertake new
ventures or initiative.
Willingness to discover non-
routine actions in a dynamic
way.
6. REASONS FOR RE-
EMERGENCE OF SMALL-
SCALE ENTERPRISE
New inventions
Technological changes
New industries and
subcontracting
Demand for more services and
variety
Individual customer requirements
Unemployment
Privatization and tax benefits
offered by governments
