Process Of Entrepreneurship

857 Words4 Pages
Entrepreneurship is a dynamic process of vision, change, and creation. It requires an application of energy and passion towards the creation and implementation of new ideas and creative solutions. Essential ingredients include the willingness to take calculated risksin terms of time, equity, or career; the ability to formulate an effective venture team; the creative skill to marshall needed resources; and fundamental skill of building solid business plan; and finally, the vision to recognize opportunity where others see chaos, contradiction, and confusion.” (Kuratko & Hodgetts, 2004, p. 30) Entrepreneurship is more than the mere creation of business. Although that is certainly as important facet, it’s not the complete picture.…show more content…
More specifically, 807,000 new small firms were established in 1995, an all-time record. Since 1980, Fortune 500 companies have lost more than 5 million jobs, but more than 34 million new jobs have been created. In 1996, small business created 1.6 million new jobs. Fifteen percent of the fastest-growing new firms (that is , “gazelles”) accounted for 94 percent of the net job creation, and less than one-third of these gazelles were involved in high technology. Small businesses (that is, those with fewer than 500 employees) employ 53 percent of the private work force and account for 47 percent of sales and 51 percent of private sector gross domestic product (GDP). Sixteen percent of all U.S. firms have been in existence for less than one year. Sixty seven percent of all new inventions are created by smaller firms (Reynolds, Hay, and Camp, 1999). Given these findings, it would seem safe to assume that new firms with employees may number more than 600,000 in a given year, and that another couple of million new…show more content…
Approximately one new firm with employees is established every year for every 300 adults in the United States. As the typical new firm has at least two owners-managers, one of every 150 adults participates in 4 the founding of a new firm each year. Substantially moreone in 12are involved in trying to launch a new firm. The net result, then, is that the United States has a very robust level of firm creation. Among the 6 million establishments (single- and multi-site firms) with employees, approximately 600,000 to 800,000 are added each year. That translates into an annual birth rate of 14 to 16 per 100 existing establishments (Reynolds, Hay, and Camp, 2000). The United States has achieved its highest economic performance during the last ten years by fostering and promoting entrepreneurial activity. According to Kuratko & Hodgetts (2004) the U.S. success has at least three entrepreneurial components. First, large firms that existed in mature industries have adapted, downsized, restructured, and reinvented themselves during the 1990s and are now thriving. Large businesses have adopted and learned and become
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