Generally, up till now, we have yet to find a
universal definition that can be adopted, with regard to the words;
entrepreneur and entrepreneurship (Hsrich et al. 2005; Kuratko 2009; Frederick
et al. 2013; Norasmah 2013). The definitions of these two terms has always been
debated among researchers, educators and decision-makers, ever since they were
introduced in the early 1700.
Who is an
Entrepreneur?
The word entrepreneur originates from the French word entreprende which mean between-takers or
go-between; one who is willing to take on or try something (Mohd Salleh et al.
2005). In 1725, the word entreprende
is used by Richards Cantillon, an economist and the term are clearly associated
with business activities. According to Richard Cantillon, an entrepreneur is
someone who is willing to take on a task, or to try something. In other word,
entrepreneurs are risk takers. Apart from that, according to the ‘Kamus Dewam’
(2005), the term entrepreneur comes from the Malay word, ‘usaha’. The word is
related to the characteristics to the effort to achieve something. Entrepreneurs
are also defining as a person who undertakes an enterprise.
Basically, there have been many definitions of entrepreneur.
Table 1.1 summarizes the development of the definitions of an entrepreneur.
Source
|
Definition
|
Early Stage
|
Entrepreneurs are known as merchants.
|
Mid Stage
|
Individuals who managed large-scale projects.
|
17th Century
|
Entrepreneurs are individuals who take the risk of
profit or loss as a result of a contact with the government at a fixed price.
|
Richard Cantillon (1725)
|
Entrepreneurs are risk-takers and they are different
from a person who provides capital.
|
Adam Smith (1776)
|
Individuals who formed the organization for
commercial purposes, able to envision and seek the potential demand for
products and services.
|
Jean Baptise Say (1803)
|
Distinguished by individuals who need money and
individuals who have money.
|
Mill (1804)
|
Risk-taker individuals.
|
Richard Dan Ralph (1873)
|
Individuals who plan, organize and operate the
profit as well as unpredictable risks of the company/
|
Francis Walker (1876)
|
Individuals who benefits from the ability to manage
and is different from the individuals who provide the capital and receive the
benefits.
|
Joseph Schumpeter (1934)
|
Individuals who always introduce new things and
develop unexplored technology.
|
Sutton (1954)
|
Demanding responsibilities.
|
David McClelland (1961)
|
Individuals who are able to endure risks, assertive,
energetic, responsible, intelligent in decision making, able to envisions the
future and have organizational skills.
|
Davids (1963)
|
Have goals, responsibility and self-confidence.
|
Pickle (1963)
|
Individuals who make efforts to improve adherence, possess
communication skills and high technical knowledge.
|
Peter Drucker (1964)
|
individuals who can maximize the opportunities.
|
Albert Shapero (1975)
|
An initiative person, a person who is organized or
able to organize economic mechanisms’ in order to change the source and
situation to be more practical and able to withhold the risks/
|
Kirzner (1979)
|
Individuals who are always attentive to business opportunities
that others do not perceive and will take action in imaginative, creative and
innovative way.
|
Kal Vesper (1980)
|
A person who thinks differently than economists,
psychologists, businessmen and politicians.
|
Hull, Boley & Udel (1980)
|
Individuals who purchase or inherit a business with
the intention of expanding it continuously.
|
Meredith, Nelson & Neck (1982)
|
Individuals who are able to see and evaluate
business opportunities, with the needed resources in order to take advantage
of opportunities and apply appropriate actions to ensure success.
|
Yep (1989)
|
An independent individual who works and acts independently
to create or produce goods or services that are useful to the public, by
managing nand administering labor force, business capital and natural
amenities that exist around them. They become the prime mover of the work and
adapt to the risks.
|
MEDEC (1990)
|
A person who is associated with the beginning of a
promising business profits. A group of individuals who is able to establish
or continue to lead and develop their own business for the greater good of
the society and achieve God’s blessing.
|
Kets de Vries (1996)
|
A risk maker, using others’ capital which is
different than a risk taker.
|
Barjoyai Bardai (2000)
|
Open-minded individuals in business and always look
for opportunities. They have privileges that allow them to create investment
opportunities and identify projects that are beneficial.
|
Scarborough & Zimmer (2000)
|
A person who is able to establish a new business by
identifying opportunities, gather and use resources, willing to take risks
and face the uncertainties in achieving profit and business development.
|
Bolton & Thompson (2004)
|
Individuals who are able to create or innovate
something worthy, when provided with the right opportunity and environment.
|
Donald Kuratjo & Richard Hogetts (2004)
|
A person who manages, operates, is able to take
risks and recognizes the opportunities where others do not and foresee the
difficulties.
|
Zaidatol Akmaliah (2007)
|
Individuals who start and manage a business with a
risk and uncertainty to gain profits and develop the outcomes by identifying business
opportunities.
|
Rosli et al. (2010)
|
An individual who develop a business successfully
with the goal to gain profits and at the same time, practices strategic
instruments to continue being successful.
|
Howard Frederick, Allan O’ Conner & Donald
Kuratko (2013)
|
Individuals who create innovation in a business or community
in which they can identify and seize opportunities; convert opportunities
into marketable ideas; adding value through time, effort, money, or skill;
take risks in the competitive market to implement these ideas; and recognize
or accept the rewards from these efforts.
|
Source:
Norasmah et al. (2006); Rosli et al. (2010); Salmah (2009); Frederick et al.
(2013); Armanurah (2014)
Based on the above explanations, it appears that there
is no standard definition of an entrepreneur. Every researcher has his or her
own understanding of the term and if all points are refined, an entrepreneur,
can be deduced as someone who seizes opportunities, take risks, accepts responsibilities,
and is an innovative or creative inventor. However, it is not an easy task to
give a solid definition of an entrepreneur. In fact, according to Chell (2001),
up till now, there is no specific definition that is agreed to be used by all.
What is Entrepreneurship?
Definition of entrepreneurship also varies, in the
same way as the definition of an entrepreneur. In a narrow definition,
entrepreneurship is a process of exploration of ideas in which they are
converted into products or services, and the building of the efforts to
bringing a product or services, and the building of the efforts to bringing a
product or service to the market (Johnson 2001). Entrepreneurship also means a
process that carries new combinations, such as new products, new sources of raw
materials; new combinations, such as new products, new sources of raw materials;
new production methods and new organizational forms (Shumpeter 1934). On the
other hand, Shapero (1982) views entrepreneurship as an agreement that considers
behaviors such as initiative, organizing social and economic mechanisms to
convert resources and situations to practical actions and acceptance of the
risk of fail. However, Kuratko (2009) and Mohd Salleh (2005) view
entrepreneurship as more towards the process of business invention. According to
Kuratko (2009), this is due to the characteristics of entrepreneurship such as;
seeking opportunities, taking uncertain risks and the tendency to turn an idea
into a reality. Furthermore, entrepreneurship is a process that allows a person
to run the business in innovative ways. Entrepreneurship I often associated
with attitude, values, knowledge and skills that make a person capable and
efficient in searching, identifying, seizing the opportunity and converting
business strategies and efforts to gain profits (Barjoyai 2000).
