Entrepreneurship is a process that often leads to the creation of new enterprises but in this article the concept is broadened to include innovative and enterprising behavior within existing organizations. While it is recognized that entrepreneurs and entrepreneurship are the products of various societal, organizational, and individual factors, this article focuses on the inherent personal traits of Individuals that dispose them to engage In entrepreneurial acts. Some approaches to assessing the entrepreneurial personality are examined, but the principal focus is on pencil and paper measures of entrepreneurial attributes.
Various instruments that purport to measure key entrepreneurial characteristics such as need for achievement, locus of control, and creative tendencies are considered and relevant empirical evidence is reported. A consideration of the appropriateness of the Durham university Business School’s General Enterprising Tendency test as a composite Instrument for assessing enterprising or entrepreneurial tendencies follows along with some statistical norms for this test, which should prove useful for practitioners and academics alike.
Finally, some problems with trait theories of entrepreneurship are discussed. Recent years have witnessed a remarkable increase in discussion and research on entrepreneurship; indeed, It Is difficult to listen to a political debate nowadays without some reference to the subject. It Is topical because entrepreneurship and related issues such as innovation and enterprise are regarded as crucial determinants of economic growth and prosperity (Trucker, 1985).
However, the debate about how to increase entrepreneurship has been hampered by a lack of agreed definitions of entrepreneurship and associated topics. Therefore, in this article, it is proposed to explore the nature of entrepreneurship and similar concepts such as enterprise and explain why they are especially Important for Requests for reprints should be addressed to S. Creole, University of Ulster, Shore Road, Jordanians, Co Mantra BUTT JOB. Email: s. [email protected] AC. UK 8 CROWER economic development at the present time.
The issue of how to recognize individuals with the capacity to initiate entrepreneurial events will then be addressed. Entrepreneurship has had a long association with economics (Curator & Hodges, AY), Ana Is closely lanker Walt e roots to create weal TN Day casuals or responding alertly to shifts in demand or supply rather than by optimally utilizing existing sources. Entrepreneurship “consists in doing things that are not generally done in the ordinary course of business routine” (Schumacher, 1951, p. 55), is a “dynamic process of creating incremental wealth” (Roundest, 1984, p 28), is concerned with doing different things, not doing things better and typically involves such activity as upgrading “the yield from resources”, creating “a new market” or additional “purchasing power” (Trucker, 1985, up. 19 & 27). It is not enough to have new ideas, they must lead to “the successful production, assimilation and exploitation of novelty n society’ through innovation (European Union, 1996, p. 9).
Many authors consider that entrepreneurship and innovation are closely linked (Trucker, 1985; Flop, 1991; Canter, 1989; Schumacher, 1951); indeed, Trucker suggests that innovation is the major tool of entrepreneurship. For Trucker, innovation is a systematic search for the changes that are occurring in society with a view to exploiting those changes as opportunities for new markets, products, or ideas. Entrepreneurship is therefore concerned with economic growth through the recognition and exploitation of opportunities in economic and social arenas.
Additional aspects of entrepreneurship are worthy of mention. Organizations and individuals can react to changes around them or proactively “allocate resources to identify and seize opportunities” (Biomass, 1992, p. 16). For Biomass, the latter is an entrepreneurial innovation strategy and emphasizes the active nature of entrepreneurship. Furthermore, Banks and Vale (1990) feel that there are different types of entrepreneurial events.
Catalytic events produce the “genuinely new’, whereas allocating events exploit the opportunities which new products or ideas present. In contrast, a refining event entails the optimum allocation of resources, is more concerned with efficiency than innovation, and is not considered in this article to be truly entrepreneurial. Finally, entrepreneurship is also concerned with building business organizations with the capacity to supply the goods and services that meet new needs.
It is a multifaceted activity that has been defined by Tensions (1989, p. 1), on the basis of many years of working with entrepreneurs, as “the ability to create something from practically nothing. It is initiating and building an enterprise rather than watching one. It is the knack of sensing opportunities where others see chaos, introduction and confusion. It is the ability to build a founding team’ to complement your own skills and talents.