Entrepreneurship has become one of the fundamentals of the global economy because of its significant role in improving the economic and investment environment, creating competitive advantage, creating new markets, reducing unemployment, achieving sustainable development, and benefiting from idle human resources.
The various definitions of entrepreneurship have been influenced by many other sciences such as marketing, strategic planning, psychology and sociology, and various management sciences. There is a close relationship between entrepreneurship and other management sciences. This has led to the emergence of many flexible theories that have helped develop the system of entrepreneurship.
Schools of administrative thought and the multiplicity of entrepreneurship’ concepts
Entrepreneurship: the psychological and physical readiness to manage and organize projects, taking into account the expectation of a percentage of risk, and the attempt to avoid them in order to ultimately achieve the desired profits.
It also means looking for a business, a new job, or launching a unique economic project.
It symbolizes the development of some of the human qualities and potentials available to people, or new entrepreneurs, to launch a new private enterprise. (Cambridge Dictionary, 21-6-2017).
Entrepreneurship is also defined as an activity that is concerned with the initiation of different businesses; to obtain a certain percentage of profits, while assessing the risk involved. Another definition is a set of scientific and practical skills that seriously contribute to the start of a new business by linking it to the ability to create non- preceded opportunities.
Entrepreneurship is also driven by the creation of a unique type of profit organization, the development of an existing facility through the use of opportunities, and the stimulation of the creative environment for employees, which gives the workforce a sense of professional satisfaction and independence and avoids the risk of emigration to seek other opportunities.
Different definitions of entrepreneurship have been the result of the close relationship between entrepreneurship and other administrative sciences. This has led to the expansion of the application of the system at all levels in all countries of the developing and developed world. This indicates the importance of this system now under the free capitalist system based on private sector participation on a large scale, through small and medium enterprises.
The relationship between innovative ideas and entrepreneurship
There is a strong relationship to the extent of integration between entrepreneurship and innovative ideas. Entrepreneurship is based on innovative ideas based on scientific and technological principles, and this area depends primarily on initiating a new business, by planning to make the most of the available resources. In the second place, it is the effective planning of the project process mechanism, then the hard work in all its stages. What also matters is the capital that is consumed during the project stages in order to achieve the final profit.
“The sense of Initiative” and pushing individuals to “lead ideas“
Of the different concepts of entrepreneurship, we move to a more detailed point that helps to understand the dimensions of this area, the factors that influence it, and control how important it is for the business environment. The most important of these is the sense of initiative. It is meant to provide the business environment with smart people, who have the sense of initiative, the spirit to challenge and compete. Not only that, but also supporting them in utilizing their opportunities and invest in the right way, and often these opportunities are the resources already available within their communities.
Thus, initiatives are the hope of many willing to enter entrepreneurship with strength. The initiatives are a real starting point for them, providing financial, logistical, administrative, knowledge and training cover for them. It is also an important marketing element for the state in marketing its activities and investment channels in order to activate the economic movement, attract foreign capital, eliminate unemployment and expand the circle of social participation in the economic sector.
Competitive advantage and opportunity and its relationship to entrepreneurship
The second element is somewhat related to the first:, which that attraction of rare opportunities. After initiating the initiative, it is important to explore new and powerful investment opportunities or to develop and invest in existing opportunities and ideas based on plans and studies.
The work of leading companies depends on supplying the market with insufficient or more demand-driven products. Therefore, they seek to attract new opportunities, assess capabilities based on close relationships, and the attempt at utilizing all motivations to create competitiveness with other companies. And after the stage of ensuring the implementation of strategic renewal, it is necessary to rethink the trends available to the establishment.
Starting from this, we find that entrepreneurship is based on the competitive advantage and the promising opportunity, and is founded on them. Through them, the idea is developed and promoted to become a company that matches real companies with a tangible administrative structure.
Do you handle the expected risks or circumvent them?
The third element is “the extent to which an enterprise can withstand the expected risks”; any project – small or large – must include a proportion of the risk and danger that must be carefully identified from the first moment of project planning.
Handling risks is part of the culture and philosophy of projects, good planning and full study of all aspects of the project, leading to avoidance and reduction of risks significantly, not fraud and escape.
Leading companies, unlike their emerging peers, have an automatic sense of risk; derived from their experience, long years in the market, and also a considerable rational capacity to measure the risk, which enables them to assess the situation more accurately.
Motivation for “creativity” ensures competitiveness
Creativity comes as the four outstanding elements that govern the dimensions of entrepreneurship, especially with the tremendous technological revolution and its penetration into the business market. Creativity has become a factor of human success in all fields, and the first factor in the continuation of this success.
Creativity is the true lung of entrepreneurial companies. Creativity is the guarantee of continuity, competitiveness and leadership. It invests the best in creative ideas. For start-ups, its real capital is creative and innovative ideas.
The development of individual skills is therefore urgent in today’s world; it is the real fuel engine for every business; the entrepreneur must be well aware of the fundamentals of developing individual skills, because they will help him in his scientific and practical life.