Desirability of new venture creation

The Fundamentals Of Entrepreneurship

Text B

Read the text, try to catch its essentials and be ready to do the tasks.

Summarize the information of the text and render its essentials.

Answer the following questions.

1. What is the evidence of increasing interest in starting new enterprises?

2. What responsibility does an entrepreneur take upon himself in creating a new venture?

3. Who can be an entrepreneur?

4. What meaning did the term “entrepreneur” have in the Middle Ages?

5. Who is the founder of the term “entrepreneur”? Give the definition.

6. What differentiation appeared in the 18^th century?

7. How can an activity of an entrepreneur be described?

8. What is the function of an entrepreneur as an innovator?

9. How many definitions of an entrepreneur are given in the text?

10. Do they have anything in common?

The perception that starting a new company is desirable results from an individual’s culture, subculture, family, teachers, and peers. In a country where an individual who successfully creates a new business is honored and respected more companies will be created. For example, in the United States there has always been a high value on being one’s own boss, having individual opportunity, being a success, and making money – all aspects of entrepreneurship. Therefore, it is not surprising to find a high rate of company creation in the United States. On the other hand, in some countries successfully establishing a new business and making money are not as highly valued and failure may be a disgrace. Countries with such cultures (national traditions) do not have as high a business creation rate. No culture is totally for or against entrepreneurship. Many subcultures (local traditions) shape their own value systems. Even in the United States entrepreneurship is not supported and promoted in the same way. In supportive environments where creating a new company is one of the best occupations, more individuals actively create new enterprises. In Moscow most of the new companies (about 40%) operate in trade. 30% operate in the field of R&D, all the rest operate in building, transport and other fields.

In addition to local traditions, family traditions are very important too. Studies of companies in variety of industries throughout the world indicate that 50 to 70 percent of the founders of companies had fathers or mothers who had an independent occupation. Encouragement to create a company is further gained from teachers in school, who familiarize the students with entrepreneurship as one possible career path. Schools with courses in entrepreneurship and innovation tend to develop entrepreneurs. Taking the entrepreneurship course increases the probability for such students to become entrepreneurs. An area having a strong education base is almost always a prerequisite for entrepreneurial activity and company creation. Finally, peers are very important in the decision to create a company. More new companies are created in an area with a meeting place where entrepreneurs and potential entrepreneurs can discuss ideas, problems, and solutions.

Дата добавления: 2014-11-29