Economic Activity to Achieve Economic and Social Results and Profit

Table of Content

Enterprise defines an endeavor as “an set abouting particularly one of some range and hazard” ( ). Other on-line lexicons on usage words and phrases like ‘a bold, a hard, a unsafe, an of import, a concern venture, a company, necessitating bravery, energy, dedication ‘ to depict what an endeavor really is.

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Veblen ( 2005 ) in his book, ‘the theory of concern endeavor ‘ gives a more elusive description of what an endeavor truly is ( in the concern sense ) . He notes that ‘the motivation of concern ( an endeavor ) is monetary addition, the method is basically purchase and sale … the purpose and normally the result is the accretion of wealth ‘ ( p. 16 ) . This contention about the motivation, the method, the purpose and the result of an endeavor qualifies the former definition. The insight drawn from these phrases is that literally all constitutions on the high streets today and all the ways in which people try to gain a life is one signifier of endeavor or another.

It could run from large concerns such as public companies through partnerships to household concerns and exclusive proprietaries. The event direction industry for illustration is composed of several event direction endeavors. These are chiefly partnerships and private limited companies formed and managed with the end of turning a net income. Examples include OWL Event Management LTD and Innovative Event Management. These comprise organisations where persons come together to supply a service to persons and other concerns in return for a net income.


Congruent with the definition of an endeavor, one can postulate that an enterpriser is that individual who runs, manages or owns an endeavor. This statement nevertheless does non to the full depict who an enterpriser truly is. Arthur and Sheffrin ( 2003 ) see an enterpriser as a individual who possesses a new venture, a new endeavor or a new thought, assumes duty for the hazards involved in running such a venture or endeavor or prosecuting his thought and enjoys the benefits and results from such activity. The perennial subject in Arthur and Sheffrin ‘s position of an enterpriser is ‘new ‘ which in the literature refers to invention.

As the subsequent treatments will bespeak, Innovation is a cardinal subject that runs through the entrepreneurship literature and pattern. There are other positions on this issues which will be expounded on shortly. The act of being an enterpriser is referred to as entrepreneurship. Both footings are hence closely related and there is no pronounced differentiation in the literature between them. The treatment on enterprisers will hence be culminated with entrepreneurship for simpleness and lucidity.


Baron and Shane ( 2008 ) contend that there is no individual agreed definition of entrepreneurship either as an activity or a field of survey. They acknowledged that the definition of entrepreneurship introduced by Shane and Venkataraman ( 2000 ) is one with high popularity. Shane and Venkataraman ( 2000 ) define entrepreneurship as a field of concern aimed at understanding how chances for invention in footings of new merchandises, services, markets, production procedure, natural stuffs, ways of forming bing engineerings, arise and are discovered ( or in fact created ) by persons ( enterprisers ) , who develop and exploit these chances through different ways to bring forth a broad scope of effects ( Baron and Shane, 2008 ).

Baron and Shane, ( 2008 ) support this definition by stressing that entrepreneurship involves ‘identifying an chance that is potentially valuable in the sense that it can be exploited in practical concern footings and output sustainable profits… and really working or developing this chance ‘ ( p. 5 ) . They extend this definition by stressing the demand to be able to run the ensuing concern successfully after the chance is developed. Early enterprisers in the event direction industry recognized the demand for a service- event direction. The history of world is marked with celebrations-‘man is a societal being ‘ . Peoples ever come together, chiefly impermanent, to accomplish certain ends under a clip bound. This raised the demand for effectivity in these meetings which today is ensured by the event direction industry.

The growing in entrepreneurship

Baron and Shane ( 2008 ) nowadays galvanizing statistics uncovering that over a million new concerns were started in the US over a 10 twelvemonth period with over 10 million people being registered as self employed. The growing in entrepreneurship has been attributed to three chief factors. Baron and Shane ( 2008 ) argue that three factors have spurred growing in entrepreneurship through the twentieth and 21st centuries. These include the media, cardinal alterations in employment contracts and alteration in basic values ( p.9 ) . These conform to theories of societal alteration discussed above.

The media has put entrepreneurship in a positive visible radiation with many enterprisers such as Bill Gates, taking up function theoretical account places in the universe. In footings of the employment contract, the authors argue that workers are progressively seeking for independency and freedom. Employers besides employ schemes to engage and fire with easiness in order to cut costs. This has made entrepreneurship a safety goblin for most persons.

Theories on enterprisers and entrepreneurship

Several theories and a continuum of attacks have been developed over the old ages to depict enterprisers and to explicate the development of entrepreneurship. Deakins and Freel ( 2009 ) surmises major parts and position points held in the country. Deakins and Feel ( 2009 ) contend that an enterpriser has been considered as an pioneer ( Schumpeter ) , an organiser of factors of production and a accelerator for economic alteration ( Say, Casson and Cantillon ) , a extremely originative person ( Shackle ) .

Ucbasaran et Al ( 2001 ) reviews the development of entrepreneurship literature and contends that assorted subjects or lines of question can be identified in the edifice of entrepreneurship theory. These include: enterprisers ‘ personalities, backgrounds and early experiences ; enterprisers ‘ traits ; behavioural facets of enterprisers ; cognitive procedures in determination devising ; and heuristics ( Ucbasaran et al. , 2001 ) . Below, I review some of the early parts in this country under four different umbrellas ; sociological theories, economic theories, cultural theories and psychological theories. This categorization is permeant in the literature ( Ucbasaran et al. , 2001 ; Deakins and Freel, 2009, Mohanty, 2005 ) .

Sociological theories

Several theories have been advanced to explicate how societal factors affect the growing of enterprisers. Two constituted theories have been recurrently discussed in the literature ; the theory of spiritual beliefs and the theory of societal alteration. These theories explain how sociological factors accelerate the growing of enterprisers ( Mohanty, 2005 ) .

Theory of spiritual beliefs

Max Webber was a celebrated sociologist and political economic expert of German beginning. His Hagiographas in the early twentieth century have enormously influenced sociological, spiritual and political thought today. His books have been recompiled and republished. In his book ‘the theory of societal and economic organisations ‘ edited by Parsons ( 1964 ) Webber asserts that ‘entrepreneurship is a map of spiritual beliefs and the impact of faith shapes the entrepreneurial civilization ‘ ( p. 36 ) . He argues that ‘entrepreneurial energies are exogenic i.e. they are come from external factors, and are fuelled by spiritual facets ‘ ( p.37 ) .

Webber argues that the rise of capitalist economy in Northern Europe was due to the Protestant divinity which inspired many followings to prosecute in work, open up endeavors, accumulate wealth and do investings. This he calls ‘the spirit of capitalist economy ‘ ( Parsons, 1964 ) . One factor spurring the creative activity of concerns in his theory is the ‘inducement of net income ‘ , where people are motivated by the chances of doing a net income from their endeavor ( Parsons, 1964 ) . His theory proposed in a nutshell that, the ‘Spirit of Capitalism ‘ arising from the Protestant ethic therefore combines with the motivation of net income resulting in the creative activity of many concerns.

Acerate leaf to state, this theory has received heavy unfavorable judgment over the old ages from modern-day research workers largely based on the premises on which the theory was built ( Karotayev et al. , 2006 ) . Karotayev eta l. , 2006 for illustration noted that the publicity of literacy, instruction and acquisition by the Protestant motion instead than the Protestant moral principle in itself resulted in the capitalist economy through the development of endeavors.

Another yet related sociological theory of entrepreneurship was advanced by Everett E Hagen in his Theory of societal alteration. He asserts that economic growing resulted from political and societal alteration ( Karotayev et al. , 2006 ) . His theoretical account shows that an enterpriser ‘s creativeness was the chief ingredient and driving force behind societal transmutation ( alteration ) and economic growing ( Karotayev et al. , 2006 ) .

Other societal theories include theory of entrepreneurial supply advanced by Thomas Cochran and theory of group degree form propounded by Frank Young ( Mohanty, 2005 ) .

Economic theories

Schumpeter ‘s Theory of invention

In his theory Schumpeter describes invention as the cardinal characteristic of economic development and an enterpriser as the driver of alteration ( Sweezy, 1943, Mohanty, 2005 ) . He defines an enterpriser as person who perceives the chance to introduce by organizing new endeavors ( Sweezy, 1943, Mohanty, 2005 ) . He views invention as a signifier of ‘creative devastation ‘ which is ‘process of industrial mutant that endlessly revolutionizes the economic construction from within, endlessly destructing the old one, endlessly making a new one ‘ ( Sweezy, 1943, p. 95 ) .

The construct of ‘creative devastation ‘ has been widely used in pattern to mention to a state of affairs where something new and more advanced replaces and destroys its predecessors. For illustration, Oil replacing Coal. The construct of invention has been maintained as the nucleus of entrepreneurship today. Invention has been extended and expanded to include several facets such as the debut of new goods, the betterment of the quality of bing goods, the debut of a new ( cheaper, faster, more efficient ) method of production, the find or gap of a new market, the find of a new beginning of natural stuff supply and/or the formation of a new organisation ( Burns, 2007, 2008, Gray, 1995, Lowe and Marriott, 2006 ) .

Schumpeterian theory of entrepreneurship furthered that large companies were chiefly behind the thrust of entrepreneurship as they had the resources and capital to prosecute in research and development activities ( Sweezy, 1943 ) . Schumpeter subsequently complemented this place by postulating that little companies were besides drivers on entrepreneurship because their size allowed for flexibleness and legerity ( Sweezy, 1943 ) . The relationship between size, invention and entrepreneurship has non apparently been farther established in the empirical literature. His place became controversial when he argued that both large and little companies are in the best place to introduce. This implies that size does non chair invention capacity. Some research workers criticize the stance of Schumpeter based on his averment that single concern work forces every bit good as managers and company directors were all enterprisers. This stance undermines the function of hazard, taking, creativeness, thought coevals, and innovativeness as an built-in portion of entrepreneurship ( Baron and Shane, 2008, Shane and Venkataraman, 2000 ) .

Again, Schumpeter uses invention as the foundation of his theory asseverating that invention was the chief driver of entrepreneurship. This point is besides capable to unfavorable judgment as it uses invention as a exclusive shaping quality of an enterpriser while sabotaging the function of hazard pickings, proficient accomplishments and organisation abilities as cardinal factors for entrepreneurship ( Ward, 2005 ) . Advocates of sociological and cultural theories of entrepreneurship will reason that this theory is limited in its position of the topic as it does non explicate why entrepreneurship and entrepreneurial ability varies greatly across states.

Other economic theories of entrepreneurship include Knights theory of net income and Hayek ‘s theory of market equilibrium ( Mohanty, 2005 ) . In the theory of net incomes, Knight views an enterpriser as person who takes hazards and is exposed to uncertainness ( Mohanty, 2005 ) . FH Von Hayek in his theory of market equilibrium showed that market equilibrium is characterized by the absence of enterprisers. Though relevant these subsequent theories have non taken the pride of topographic point in the literature.

Cultural theories

The basic dogma and statement put frontward by cultural theoreticians is that entrepreneurship is a merchandise of civilization ( Mohanty, 2005 ) . Cultural theories of entrepreneurship explain the differences in entrepreneurial ability and spirit across different civilizations. The major attractive force of these theories is that they explain why some states are developing while others develop and grow so quickly. Other theoreticians mentioned supra such as Schumpeter and Hagen have no account of this happening.

Hoselitz theory of entrepreneurship supply

Mohanty ( 2005 ) noted that Hoselitz theory postulates that ‘the supply of entrepreneurship is governed by cultural factors and culturally minority groups are the spark stopper of entrepreneurial and economic development ‘ ( p. 49 ) . This attempts to explicate why certain socio-cultural groups have spurred development and little concern growing in many states ; Mohanty ( 2005 ) quotes the illustrations of the Jews and the Greeks in Medieval Europe, the Indians in East Africa and the Chinese in South Africa. These culturally minority groups have been at the head of endeavor development, entrepreneurship and economic growing in these countries.

Hoselitz was one of the earliest theories to postulate that managerial accomplishments every bit good as leading abilities in add-on to the ‘drive to accumulate wealth ‘ were cardinal to entrepreneurship ( Mohanty, 2005 ) . His theory is besides in line with Max Webbers constructs of the ‘protestant ethic ‘ and how it drives capitalist economy. This is through the realisation that peculiar socio-cultural groups or categories foster economic growing through entrepreneurship.

Hoselitz realizes the function of alteration as a stimulation for invention in his ‘Hypothesis of the fringy work forces ‘ ( Mohanty, 2005 ) . He posits that fringy work forces are best suited to do ‘creative accommodations ‘ in times of economic alteration and through these accommodations are able to present better ways through ‘genuine inventions in societal behaviour ‘ ( Mohanty, 2005 ) .

The theory apparently presents a holistic position of entrepreneurship by sing the influence of factors such as alteration, invention, civilization, societal category, managerial every bit good as leading accomplishments, personal traits etc. Other cultural theories of entrepreneurship include Stoke ‘s theory of entrepreneurship ( Mohanty, 2005 ) .

Psychological theories

Psychological theories look at how the psychological science of the society influences the supply of enterprisers ( Mohanty, 2005 ) . Although this strand of theories is non popular in the literature, it has received important parts from Schumpeter, Krunkel and Carland ( Mohanty, 2005 ) .

Other theories

One of the most honored direction bookmans of the last century was Peter Drucker. Incidentally, Drucker has contributed colossally to the development of the entrepreneurship theory and literature. He has written several documents over the old ages which have led to the promotion of cognition in this country. Peter Drucker defined an enterpriser as ‘one who ever searches for alteration, responds to it and exploits it as an chance ‘ ( Deakins and Freel, 2009 ) . His focal point is on the attitude of an enterpriser and how he views the universe around him. Drucker notes that two factors lead to entrepreneurship ; resource and invention. He argues that ‘innovation creates resource… and resource is anything with an economic value ‘ ( Mohanty, 2005 ; Deakins and Freel, 2009 ) .

The chief part of Drucker is his position that an enterpriser must non be the proprietor or Godhead but he who manages or executes is besides an enterpriser. His plants point out facets that can be considered as entrepreneurship which include ; increasing client satisfaction from a resource, increasing the sensed value of a resource, making new value from an old merchandise, change overing a stuff into a resource, uniting bing resources into a new and more productive constellation ( Deakins and Freel, 2009 ) . Drucker extends the position of entrepreneurship to non net income organisation while stressing that the pattern has a cognition base, with constructs and theories and is non based on intuitions ( Mohanty, 2005 ) .

Controversially, Drucker argues that ‘entrepreneurship behavior instead than personality traits goads and enhances entrepreneurship ‘ ( Mohanty, 2005 ) . Several authors in the country have argued against this point showing empirical grounds to demo that there is a high correlativity between certain types of personality traits and entrepreneurship behaviour ( Ward, 2005 ) . Drucker ‘s parts still remain important.

Entrepreneurship as a procedure

Baron and Shane, ( 2008 ) have extensively reviewed the literature on entrepreneurship edifice on early theories and propositions and have arrived at what they term ‘the entrepreneurship procedure ‘ . This procedure involves a series of stairss that a successful enterpriser will take. Their theoretical account includes stairss such as ; Recognition of an chance, Deciding to continue and piecing the indispensable resources, Establishing a new venture, Building success and pull offing growing, Reaping the wagess ( Baron and Shane, 2008 ) . The authors advocate a more holistic position of entrepreneurship from thought acknowledgment through development. In their position, chances for invention are external and they arise from three beginnings ; Technological alterations, political and regulative alteration, societal and demographic alteration ( Baron and Shane, 2008 ) .

In conformity with the position of other authors such as Drucker, the research workers recognize assorted signifiers of invention including ; a new merchandise or service, a new manner of forming, a new market for bing merchandises, a new method of production and a new natural stuff. This position is widely accepted and can be classed every bit modern-day as it is widely promoted in current entrepreneurship literature.

Events direction by and large refers to ‘managing event undertakings ‘ i.e. using project direction techniques to the direction of events. Ramsbord et al. , ( 2008 ) noted that event direction involves several undertaking direction facets such as trade name analysis and consideration, analysis of event audience, creative activity of an event construct, planning and organizing the event bringing. The writers besides noted that other facets such as event assessment and event profitableness are turning in significance as portion of the event direction construct.

An event means several things to different people and fluctuations will develop in footings of size of the event, the event audience, the significance of the event, the frequence of the event, the location of the event and the possible grosss to be generated from the event etc. In the context of event direction nevertheless the ‘word ‘ event takes a battalion of significances. It includes corporate events such imperativeness conferences, other concern conferences, corporate meetings ( such Annual General Meetings ) , corporate day of remembrances and merchandise launches amongst others.

It besides includes corporate selling plans such as gap of concern sites and route shows. Events in this sense may besides mention to corporate cordial reception events such as award ceremonials, manner shows, film premieres, music concerts, music launches. It can mention to national events such as National yearss and featuring meets ( Olympics, universe cup, title-holder ‘s conference games and English premier league games ) .

Bowdin et al. , 2006 reexamining several constructs of events resolved that an event is an organized juncture such as a meeting, convention, exhibition, particular event, jamboree, dinner etc. which is composed of several yet different maps. They assert that it is impermanent in nature, it is alone and it stems from direction, plan, puting and people ( p. 14 ) . Aspects involved in event direction as noted by Bowdin et al. , 2006 include venue studies, site design, budget drafting, supply concatenation and logistics direction, hard currency flow direction, undertaking programming, stuffs procurement, wellness and safety, proficient facets ( sound, visible radiation, picture ) , security and crowd direction.

As noted above, post-event assessment and event profitableness are increasing turning as a important portion of the event direction subject. This besides constitute major concerns for enterprisers. The position of classical theoreticians such Webber and Schumpeter shows that profitableness is that chief push behind entrepreneurship. The concern of event direction is comparatively new when compared to other concerns such as retail and conveyance.

Recognition for the demand for an event direction service it self indicates entrepreneurship. Before excessively long along, event organisers had to pull off the event without the demand for any professional and experient organiser. Today many organisations can outsource event direction to professional organisations which have the accomplishments, experience and resources to run such events. This has enormously improved the success of events.

Within the events industry several inventions have been made over clip. Sign-Up Technologies, a little US house has late released its eticketing system which allows event boosters to sell tickets and roll up client information online. This eliminates the demand for 3rd party retail merchants who charge high committees. It besides expands the markets by leting clients to easy entree markets.

The debut of sophisticated picture and sound engineerings and new patterns in phase design allows event directors to spread out the capacity of events while guaranting that the client experience and the quality of the event is non hampered. This helps to better profitableness.

The usage of new sophisticated surveillance and monitoring equipment has improved the cost incurred by event direction companies. An Irish Event Management Company, EventSec LtD uses a nomadic monitoring system that allows it to cut down manning at events ( cutting costs ) but improve security through effectual and efficient monitoring. EventSec LTD has besides found a new market for its merchandise and has now worn a contract to prosecute in traffic direction

OWL Event direction LTD current has gained celebrity in the events direction industry through its usage of modern-day engineering in illuming, sound and picture to better the event experience of its clients. The house besides liaises actively with other houses to supply bespoke catering, security, cleansing and more services. This concern theoretical account innovates by uniting different resources in a constellation that serves a demand. This comprehensive event direction theoretical account improves the client experience. OWL Event Management LTD besides realized that exhibition stands where sometimes an of import factor pulling possible clients towards exhibitionist.

The design of exhibition bases has for a long clip been taken for granted by houses. Most houses use stands that supply sitting infinite, a tabular array and a shadiness. OWL Event Management has introduced its new scope of bases which it provides to its clients. These bases are attending catching through their bespoke designs, their modern-day curves and their oculus catching illuming. The house argues that these bases keep visitants glued to flashers therefore easing the message bringing. The demand for these set up has helped the house better its net income place.

Entrepreneurial accomplishments

The literature and research in the country high spots several accomplishments, traits, personalities and features which should be possessed by successful enterprisers. One of the most holistic position of these has been provided by Ward ( 2005 ) in ‘An integrated theoretical account for entrepreneurship and entrepreneurship ‘ .

Ward ( 2005 ) asserts that enterprisers require a personality, proficient accomplishments and behavioural accomplishments in order to be successful. The desired or winning personality traits harmonizing to his theoretical account include ; Risk tolerance, Self assurance, Achievement oriented, Proactive, Innovative, vision, flexibleness, high energy, uncertainness tolerance, Desire for liberty, assertiveness, resiliency, doggedness, self awareness, creativeness, capacity to animate and emotional stableness. These personality traits help in the coevals of winning thoughts. These must be matched by proficient accomplishments and behavioural accomplishments which will enable the enterpriser to reassign these thoughts to feasible concerns through the constitution and direction of the endeavor.

As indicated by the theoretical account, the proficient accomplishments involved include ; selling, finance, concern planning, strategic planning, human resource direction, production direction, legal issues, logistics direction and quality direction ( Ward, 2005 ) . The behavioural accomplishments involves include ; communications, judgement, dialogue, creativeness, determination devising, deputation, customer-supplier relationship, motive, job resolution and squad working ( Ward, 2005 ) . The theoretical account indicates that all three types of accomplishments are necessary for effectual entrepreneurship.

The theoretical account besides shows that several external factors combine with these accomplishments to find the result of an enterpriser. These external factors include, chances in the market topographic point which may originate from uncertainness or alterations ( Ward, 2005 ) . The theoretical account shows that the handiness of resources in the external environment coupled with the enterpriser ‘s control over such resources moderates the result. Such resources include the other factors of production such as stuff, land, edifice ( Ward, 2005 ) .

Self appraisal ; A contemplation

As an person, I strongly believe that I am originative and advanced. I have ever questioned the manner things are done and thought of better ways of making certain things. I adopt a proactive attack by believing in front. I am open-minded, flexible and ever happy to encompass alteration. I am non dismayed by uncertainness but find uncertainness but find alteration and uncertainness as an chance to interrupt the status-quo and bask new experiences.

I will confidently state I fit Ward ‘s ( 2005 ) personality profile of an enterpriser. With regard to proficient accomplishments, I have expounded my cognition in several countries of concern through my class acquisition and extra external reading. Despite my wide cognition in the field of concern, I am still unconfident about taking my thoughts to the following degree because I feel I lack the experience to by successful. I call this ‘inertia ‘ . Most of my thoughts merely remain in my caput. I am sometimes impressed with myself when my friends remark on how good my concern thoughts are. I nevertheless lack proficient cognition in legal issues and my cognition on human resource direction and logistics direction needs to be improved.

As concerns behavioural accomplishments, I think I am a good communicator. This has helped my in my surveies in constructing relationships with friends and making confederations at work. I am good with squad working and have been successfully involved in minor concern dialogues. At certain times, I let my emotions get in the manner of my dialogues and do stop up repenting some of the determinations I make. I am working on being house in my determination devising and dialogues. I lack sufficient experience on certain countries such as deputation, motive and job resolution.

Plans for future development

I plan to hone my entrepreneurial abilities by really prosecuting in little scale ventures. I am presently puting up a little venture with a friend. The initial phases have involved pulling a concern program and run intoing up with possible providers and clients. We have carried out market studies and have taken a expression at factors such as logistics, selling, distribution and fiscal coverage. This experience has opened up my skylines and given me an penetration of what entrepreneurship is all about. I besides get really constructive feedback from my concern spouses. This helps me to amend and better certain issues.

Concurrent with the averment of Ward ( 2005 ) , external factors seem to play a immense function to the success of enterprisers. Some of the thoughts, we have conceived can non be implemented due to the deficiency of resources. Surely, this current venture will non be my last or my best but it will let me to develop my accomplishments in the country. Aside from this, I besides read books and listen to addresss from motivational authors and celebrated enterprisers. This inspires me to prosecute my dreams as an enterpriser.

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