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ENTREPRENEURSHIP
DEFINITION AND 7 EXAMPLES
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ENTREPRENEURSHIP - Business Studies Dictionary

Entrepreneurship is considered a driving force for innovation and economic growth. Indirectly, it can also bring about social change—through social enterprises, for example, or technologies that transform our lives. The economist Joseph A. Schumpeter referred to entrepreneurs as “dynamic innovators” who break up old structures through creative destruction. This perspective highlights that entrepreneurship is not only about founding companies, but also about renewing entire industries and shaping society in the long term. [1]

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What is Entrepreneurship?

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Characteristics of Entrepreneurship

✓ Self-Employment: Entrepreneurs are often self-starting individuals who are able to implement their visions independently and take responsibility for success or failure.

Adaptability: Because entrepreneurship inherently involves uncertainty, entrepreneurs must be flexible and adaptable to respond to changes in the market or business environment. [2]

 

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7 Inspiring Examples of Entrepreneurship

Sarah Blakely – Spanx:
Sarah Blakely identified a market gap in women's underwear and founded Spanx. With her innovative idea for shaping undergarments, she built a billion-dollar company that transformed the body-shaping industry. [6]

Brian Chesky, Joe Gebbia, and Nathan Blecharczyk – Airbnb:
These founders saw the opportunity to turn unused living spaces into a source of income and launched Airbnb. The platform has changed the way people travel and book accommodations, enabling individuals to offer their homes and apartments as vacation rentals. [7]

Anita Roddick – The Body Shop:
Anita Roddick founded The Body Shop, a company focused on natural skincare products. Her commitment to ethical practices, environmental protection, and social responsibility positioned The Body Shop as a pioneer in sustainable business. [8]

Mark Zuckerberg – Facebook:
Mark Zuckerberg launched the social network Facebook in 2004 alongside fellow college students as a campus project. It evolved into the world’s largest social networking platform. His ability to identify trends early and leverage technological innovations played a crucial role in Facebook’s success—such as prioritizing mobile use and making strategic acquisitions like Instagram and WhatsApp, which helped maintain Facebook’s leading position.

One example of Zuckerberg’s trend awareness: when it became clear that younger users were gravitating toward visual platforms, Facebook acquired Instagram in 2012. At the time, Instagram had only 30 million users—today, it has over 2 billion. Similarly, he responded to the growing messaging trend by purchasing WhatsApp in 2014. These decisions reflect Zuckerberg’s use of “contextual intelligence”—the ability to anticipate the next major development in the tech world. Research highlights this kind of strategic foresight as a key success factor for the longevity of tech companies (Wu, 2020), helping explain how Facebook has survived the rise of new platforms and continually adapted. [9]

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Significance of Entrepreneurship for Society

Entrepreneurship plays a crucial role for society and the economy at various levels:

  • Solving Social Challenges: Entrepreneurship can help address social problems such as environmental issues, lack of education or healthcare. Social entrepreneurs use their innovative power to bring about positive change.
  • Cultural Change: Entrepreneurship promotes a culture of creativity, initiative and willingness to change. It encourages people to develop unconventional ways of thinking and to break new ground. [10]

Recent developments in Entrepreneurship Research: Insights and Trends.

The world of entrepreneurship is constantly changing, driven by technological advances, social changes, and shifting market dynamics. Entrepreneurship research plays a critical role in deepening our understanding of the complexity and diversity of these entrepreneurial activities. In this article, we will explore the latest themes and trends in entrepreneurship research that are shaping our view of the entrepreneurial landscape.

 

Entrepreneurial Behavior and Psychology

Research into the psychological aspects of entrepreneurship is gaining in importance. Researchers are studying how personal characteristics such as risk-taking, self-confidence and resilience influence entrepreneurial behavior. In addition, the effects of stress, failure and success on the decision-making of entrepreneurs are analyzed.

Ecosystems and Networks

Entrepreneurship is rarely an isolated activity, but often embedded in a complex network of actors. This research sheds light on the role of business networks, incubators, investors and universities in supporting start-ups. Analyzing ecosystems helps to understand how entrepreneurial activities can be promoted and facilitated.

Internationalization and Globalization

Globalization opens up new markets and opportunities for entrepreneurs. Researchers are studying how entrepreneurs plan for international expansion, deal with cultural differences, and adapt to different market conditions. Research on cross-border entrepreneurship raises questions about scaling and overcoming challenges in new environments. [11]

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The diversity of Entrepreneurship: Four types of visionaries

Entrepreneurship, the driving force behind innovation and change, takes various forms in today's business world. Identifying different types of entrepreneurship provides a more comprehensive understanding of the diverse motivations, approaches, and influences of entrepreneurs. In this article, we will take an in-depth look at the four main types of entrepreneurship and highlight the unique characteristics of each type.

Necessity-driven Entrepreneurs

The third entrepreneurship concerns necessity-driven entrepreneurs who act for existential reasons. They start businesses because of financial challenges, lack of job opportunities or other constraints. Entrepreneurship here manifests itself in overcoming circumstances and finding new ways to do things. Necessity-driven entrepreneurs are often found in regions with limited resources or economic uncertainty. Despite adverse circumstances, they often develop an entrepreneurial mindset to find creative solutions. [14]

Social Entrepreneurs

Finally, there is the entrepreneurship of social entrepreneurs who focus on solving social or environmental problems. They develop business models that strive for positive social impact and are financially sustainable at the same time. Entrepreneurship here is seen in the balance between economic success and social responsibility. These visionaries use their entrepreneurial mindset to develop innovative solutions to problems such as poverty, lack of education and environmental pollution. [15]

Comparison: Entrepreneur vs. Family Entrepreneur

[16] [17]
Aspect   Entrepreneur Family Entrepreneur
Motivation   Striving for innovation and novelty Continuing and maintaining family traditions
Start-up approach   Start-up or development of new ideas Takeover of an already established business
Risk appetite   Typically higher risk appetite Can vary, often more conservative approaches
Goals   Fast growth and scaling of business idea Long-term stability and family wealth
Innovation   Focus on radical innovation and disruption Eemphasis on incremental innovation
Independence   Striving for entrepreneurial freedom Ability to work within existing structures