History of entrepreneurship

1) The definition of entrepreneurship

Entrepreneurship is an elusive concept to pin down. Despite widespread interest in the topic and a broad recognition of its importance to the economy, there remains a lack of consensus about how to specifically define entrepreneurship. (“What Is Entrepreneurship? - Center for American Entrepreneurship”)

‘Entrepreneur’ is an English derivation of the French word ‘entreprendre’ (to undertake), leaving wide latitude for interpretation and application.’

According to Peterson (1985), Entrepreneurship is defined as “the opportunity-seeking style of management that sparks innovation.”

According to Cunningham and Lischeron (1991), “Entrepreneurship is a series of learning activities which focus on the central functions of managing a firm”. 

According to Stoner, Freeman and Gilbert (1995), “Entrepreneurship is the seemingly discontinuous process of combining resources to produce goods or services.”

According to Dollinger (1995), “Entrepreneurship is the creation of an innovative economic organization or network of an organization for gain under conditions of risk and uncertainty.”

According to Bateman & Snell (1996), “Entrepreneurship is the act of forming a new organization of value.” 

It is easy to confuse the definitions of “Entrepreneur”, “Entrepreneurship”, “Enterprise”. In simple terms, “Entrepreneur” is the person, “Entrepreneurship” is the process of action, and “Enterprise” is the object.

2) Why is entrepreneurship important

  • Accelerates Economic Growth
    • Creates new jobs and opportunities & Improves productivity
  • Promotes Innovation
    • New ventures, markets, products, and technology
  • Promote Social Changes
    • Improved lifestyle, better morale, and higher economic choice

3) History of American entrepreneurship

The United States has entrepreneurialism deeply rooted in its history as the country was founded and settled by risk takers and innovators looking for new opportunities. In the late 1970s, the United States was the first country to embrace entrepreneurial endeavors while ditching managerial capitalism. (“The History of American Entrepreneurship”)

  • The start of American entrepreneurship dates back to settlers engaging in trade and barter with Native Americans which resulted in mutual benefit for both parties. 
  • Following the entrepreneurial endeavors of early settlers, entrepreneurship flourished in the period following the American Civil War. Rapid growth of the communication and transportation industries due to the expansion of mining and agriculture allowed entrepreneurs to easily find success.
  • By the later part of the 19th century, entrepreneurs were considered among the elite. Westward expansion and the creation of the railroad led farmers to move west, prompted by governmental incentives and subsidies for industries such as railroad, banking, and land acquisition. This led to tremendous opportunities for profit, again allowing entrepreneurship to flourish. 
  • In more recent times, entrepreneurship is most well known for successful entrepreneurs is the tech industry.
History of entrepreneurship