EVOLUTION OF ENTREPRENEURSHIP

DEFINITION OF ENTREPRENEUR

            Entrepreneurs are pioneers to business success today. They detect opportunities, leading to a new opinion or innovation and good performance become a standard in the era of free enterprise. Scaborough and Zimmerer (1988) define the entrepreneur as a person who creates a new business and facing an uncertain situation in order to gain profit and growth to identify opportunities and provide the resources to achieve it. Entrepreneurs usually start with the idea that there is only and always a simple idea and provide the necessary resources to move those ideas that are appropriate to the business. Other than that, Kuratko & Hodgetts (2004), define the entrepreneur as a person who is trying to organize, manage and take risks in business. Entrepreneurs are also a catalyst for economic change using search for a particular purpose, careful planning and appropriate consideration when making any business process. With optimistic and committed to work with creative entrepreneurs to acquire new resources and renewing old source to the new capacity, all this is only intended to create a profit.

DEFINITION OF ENTREPRENEURSHIP

                The word 'entrepreneur' comes from the French word "entrepredre" which means "to undertake". In the Malay language it can be defined as "to take over". According Histrich and Peter (1988), entrepreneurship is a dynamic process of wealth creation. Wealth is created by the individual who bears the risk of the 'equity', time and career commitment or provide value to a product or service. It is the process of creating something new by taking into account the time and effort to take into account the risk of financial, psychological and social. And receive the benefits in terms of financial, personal satisfaction and freedom. Besides, Kuratko and Hodgetts (2004)  define entrepreneurship as a process of innovation and creation through the four dimensions of the individual, organization, environment  and the process of collaboration with networks in government, education and institutional.

EVOLUTION OF ENTREPRENEURSHIP

             In the Earliest period, definition of entrepreneurship began as early as the Marco Polo who comes to the Middle East for trade. Marco Polo has signed an agreement with the capitalists to sell their products. In the contract merchant adventurer took a loan at 22.5% rate including insurance. Capitalist was the passive risk bearer and merchant adventurer took the active role in trading, bearing all physical and emotional risks. When the merchant adventurer successfully sold the goods and completed the trip, the profits were divided with the capitalist taking most of them up to 75%, while the merchant adventurer settled for the remaining 25%.

            In middle ages, Entrepreneur is described as someone who is involved in the care and control of a large production projects. It is possible to control the project using the resources provided by the government. In this case, the entrepreneur does not bear any risk. Entrepreneurs in this age, is a have control and authority of construction works such as public buildings and churches. A typical entrepreneur in the middle age was the priest.

            In 17^th century, the evolution of entrepreneurship can be related with the relationship between risk and entrepreneurs. Entrepreneurship is the person who signed the contract agreement with the government to provide a service or supply products that have been determined. The contract price is fixed. Then, the entrepreneurs are fully responsible for the gains and losses of the business.  John law, a Frenchman was one of the entrepreneurs in that period. The founder of the royal bank of France and the Mississippi Company, which had an exclusive franchise to trade between France and the new world. Monopoly on French trade eventually led to collapse of the company.  Richard Cantillion, an economist defines entrepreneurs earlier. In his view, the entrepreneur is risk insurers. Merchants, farmers, craftsmen, and so is an entrepreneurs. They buy things at a certain price and sell it at a price that is uncertain, with the risks

            . In the 18th century, the person with capital was differentiated from the one who needed capital. The entrepreneur was distinguished from the capital provider. One reason for this differentiation was the industrialization occurring throughout the world. Eli Whitney was an American inventor best known for inventing the cotton gin. This was one of the key inventions of the industrial Revolution. Thomas Edison, the inventor of many inventions. He was developing new technologies and was unable to finance his inventions himself.  Edison was a capital user or an entrepreneur, not a provider or a venture capitalist.

            In 19^th and 20^th century, Entrepreneurs are not always associated with the management.    According to Merriam-Webster's online dictionary, an entrepreneur is one who organizes, manages, and assumes the risk of a business or an enterprise. The entrepreneur organizes and manages an enterprise for personal gain. The materials consumed in the business, for the use of the land, for the services he employs, and for the capital he requires. Andrew Carnegie is one of the best examples of this definition.  Carnegie, who descended from a poor Scottish family, made the American Steel Industry one of the wonders of the industrial world.

            In the middle of the 20^th Century, the function of the entrepreneurs is to recreate or revolutionize the pattern of production by introducing an invention. Innovation, the act of introducing some new ideas, is one of the most difficult tasks for the entrepreneur. For example, Edward Harriman, who reorganized the railroad in the United States and John Morgan, who developed his large banking house by reorganizing and financing the nation’s industries. Besides, the Egyptian who designed and built great pyramids out of stone blocks weighing many tons each, to laser beams, supersonic planes and space stations.

            In 21^st century, Entrepreneurs are known as a hero for Free Enterprise market. Entrepreneur of the century created many products and services and is willing to face a lot of risks in the business. According to Kuratko & Hodgetts, most people say entrepreneurs are pioneers in creating new businesses. In the year 2005 Hisrich, Peter and Shepherd regarded entrepreneur as an organizer who controls, systematize, purchases raw materials, arranges infrastructure, throw in his own inventiveness, expertise, plans and administers the venture.

            The Future of entrepreneurship will be growth with development of technologies. The modern technologies and internet have improved the ways of conduct business. Entrepreneurs now have the luxury of putting their business idea into action through the click of button.