1.2 The Importance of Being Entrepreneurial and Being a Short-Term Monopolist
The notion of the entrepreneurial enterprise as a monopolist is not new. Indeed, it has a long tradition and history. KirznerKirzner (1973). noted in 1973 that entrepreneurship may be a step to monopoly power. It is possible to acquire market power by adding unique features or services that are not offered by the competition. When the unique features of a product are combined with a well-thought-out production and distribution process and an understanding of the competitive environment, the results are usually positive. This knowledge and the unique knowledge resources are of course transitory, but in the short run they can provide for near-monopoly power.
Entrepreneurship is currently being viewed as a set of skills that are part of a rational and logical process for identifying and creating opportunities.Sarasvathy and Venkataraman (2008). The process and the skills have been likened to learning how to read, write, calculate, and conduct scientific reasoning. Being a successful entrepreneur requires insight and knowledge of problem solving, strategic planning, new product development, project management, and portfolio management among others. An important reason for participating in the entrepreneurial process is that it involves a significant amount of making and building things. This, in turn, leads to learning-by-doing and the creation of new unforeseen opportunities because you have been participating in the entrepreneurial process. Participation in entrepreneurial activity leads to the creation of opportunities in the form of products and services that were not even conceptualized or anticipated in the beginning. The entrepreneurial process actually creates new markets via innovation and product differentiation. Our definition of entrepreneurship focuses on a continuous process for creating new and enhanced products and services.
EntrepreneurshipA risky endeavor involving the continuous creation and re-creation of a new enterprise, a new product, or a new idea. is a risky endeavor involving the continuous creation and re-creation of a new enterprise, a new product, or a new idea.
The origin of the word entrepreneur can be traced to Old French. EntrepreneursIndividuals who undertook risky endeavors such as theatrical productions. were individuals who undertook risky endeavors such as theatrical productions. Risk is an inherent part of entrepreneurship. If there is no risk involved and there is still money to be made, then the endeavor is probably a gift.