Explain the nature and growth of entrepreneurship.
Entrepreneurship is the process of starting a business to provide a product or service to the free market. The product or service does not need to be new or innovative, but this is what many people typically envision when looking at entrepreneurship because there is more risk in presenting a new idea. There are several themes common among entrepreneurial startups.
Entrepreneurs, those starting the companies, often make decisions biased toward their company, morals or expected outcome rather than basing decisions on reasons, logic and economic factors. The reasons is emotions. Entrepreneurs are much more emotionally invested in their company and hopes for future success.
There is always a learning curve for entrepreneurship which can be steep for a newcomer or more gradual for an experienced person but educational growth is always expected. The growth occurs because no company has worked under the exact circumstances of the entrepreneurial company. Even in a proven business model there are new people, a new market, market share, etc which effect the way the company works. When a new product is introduced there is an even greater learning curve as people react to it.
Entrepreneurship is currently on the rise throughout many national economies. Economies are becoming increasingly global which allows for a greater method of sharing ideas and exploring new market opportunities. Technology has increased access to people, places and assets not previously usable. There is also a current economic global recession which has encouraged entrepreneurship as older persons and university graduates are frustrated by lack of job opportunity in the traditional manner. There is an increasing acceptance in society for failed business which may encourage many to attempt to create a new company with less social stigma for failure.