Entrepreneurship

The capacity and willingness to develop, organize and manage a business venture along with any of

its risks in order to make a profit. The most obvious example of entrepreneurship is the starting of

new businesses.

In economics, entrepreneurship combined with land, labor, natural resources and capital can

produce profit. Entrepreneurial spirit is characterized by innovation and risk-taking, and is an

essential part of a nation's ability to succeed in an ever changing and increasingly competitive global

marketplace.

Entrepreneur

A person who organizes and manages any enterprise, especially a business, usually with considerabl

e initiative and risk.

Entrepreneurship is a key driver of our economy. Wealth and a high majority of jobs are created by

small businesses started by entrepreneurially minded individuals, many of whom go on to create big

businesses. People exposed to entrepreneurship frequently express that they have more

opportunity to exercise creative freedoms, higher self-esteem, and an overall greater sense of

control over their own lives. As a result, many experienced business people political leaders,

economists, and educators believe that fostering a robust entrepreneurial culture will maximize

individual and collective economic and social success on a local, national, and global scale. It is with

this in mind that the National Standards for Entrepreneurship Education were developed: to prepare

youth and adults to succeed in an entrepreneurial economy.

Entrepreneurship education is a lifelong learning process, starting as early as elementary school and

progressing through all levels of education, including adult education. The Standards and their

supporting Performance Indicators are a framework for teachers to use in building appropriate

objectives, learning activities, and assessments for their target audience. Using this framework,

students will have: progressively more challenging educational activities; experiences that will

enable them to develop the insight needed to discover and create entrepreneurial opportunities;

and the expertise to successfully start and manage their own businesses to take advantage of these

opportunities.

Entrepreneurship from the economic-history context

Looking at entrepreneurship from the economic-history context allows us to look at the flow of

events in time and space such as inventions and innovations, the context in which they occurred and

the impacts upon society these actions and events had. Looking directly at the biographies of

historical figures can assist us in seeing the historical contexts of their efforts, innovations, or

inventions. This may help us to understand how their insights occurred and opportunities were

identified and exploited, showing us the reasons behind the trajectories these historical figures took

with their inventions and innovations which impacted upon society’s future development path.1

Take for example the biography of Thomas Edison we can see the importance of systematic

development work, self-promotion, and having a workable and viable business model in mind to

exploit any subsequent invention. These were paramount elements of his success. Many of the

failing entrepreneurs of the dot.com bust of 2000 failed to see the necessity of having a workable

and viable business model to exploit their ideas and could have well learnt from the lessons Edison

gave us.

Many inventions, subsequent commercialization and acceptance by society have dramatically

changed our way of life over the centuries. Electricity and the electric light, the aircraft and jet

engine, the automobile and combustion engine, microchips, computers and mobile phones have all

in different ways drastically changed society. These changes have led to further opportunities which

entrepreneurs have been able to exploit. The transmission of electricity to homes allowed a host of

other electrical devices to be invented, air travel led to air freight, travel agents, air terminal

services, interstate, inter-regional and international business travel, and the building of hotels

around the world, the automobile has led to automobile service stations, the invention of seat beats

and other safety equipment, microchips have led to the invention of many items like digital watches,

calculators, hand held GPS devices, and a host of other products. Computers and mobile phones

have led to opportunities in software development and peripheral products and services. We owe

the progression of our social existence to the invention of new technologies and ways of doing

things, the creation of so many concepts and tangible things like alphabets, language, the wheel,

farming techniques, cooking, social institutions, and the legal system, etc.

From the historical context it can be argued that innovation is governed by the period and place an

entrepreneur resides.2 Thus innovation is a period and regional phenomenon3 and the great

inventors through history were products of their environment spotting, and exploiting opportunities,

rather than people with brilliance in isolation.4 The inventors and entrepreneurs only knew what

their time and place allowed them to know.5Innovation is thus a situational phenomenon and

therefore the time and space aspect of understanding opportunity is important.

Following on from the above argument, novelty becomes a relative concept to time and space.

Something that is new to one location may have long time been accepted product or service in

another location. McDonalds was accepted in the United States market before it was introduced into

foreign markets, were it was novel in each new market at the time of its introduction. Pizza was long

accepted in Italy and Greece before it was introduced into the United States in the early 20th

century and rest of the world after the Second World War. This has been an advantage for many

students from developing countries studying in developed countries, where they have been able to

identify novel business concepts in countries that they studied in, and went home to apply these

concepts in their home countries upon their return. For example, many new manufacturing, retailing

or service business concepts were started in South-East Asia by returning students. The Econsave

supermarket group in Malaysia was inspired and foundered by Malaysian students observing

independent Food town supermarkets in Melbourne, Australia.

The nature of opportunity is such that it is ephemeral and transitory7through time and space.

Opportunity can be equated to periodically opening and closing doors along a corridor. True

opportunities may not exist because a piece of technology is missing. For example, the idea of

tourists visiting orbital hotels for holidays will remain only a concept until low cost transportation

from the Earth to orbit has been developed. Thus space holidays may be an opportunity for another

time, although it is an idea today. Many ideas have to wait for technology to catch up. An

opportunity may exist in one place but not in another. Opportunities may exist for high end cafes

and coffee shops in densely populated urban areas and high volume passenger transport terminals

like railway stations and airports but there may be no opportunity for the same concept in much less

populous rural areas where incomes may be much lower and the “urban café culture” does not exist.

This shows the importance of time and space.

The Start of the Industrial Age

The Industrial Age truly began in 1712 with the invention of Thomas Newcomen’s steam engine in

Devon, Britain. But it wasn’t until James Watt’s steam engine in 1763 that things really got moving,

enabling work to be done through the movement of pistons rather than the movement of muscle.

By the time of Adam Smith’s death in 1790, the nascent Industrial Revolution had already reared its

head. The effects of the Renaissance, the humanist movement, and the Enlightenment’s focus on

science and empiricism would translate into the launch of a movement that would impact the world

as none before it had. It was this revolution—often dirty, harsh, and cruel—that prompted thoughts

of communism and created robber barons and industrial titans. It was this same revolution,

however, that led to the development of the innovations, technology, and standards of living we

have today.

From the Industrial Revolution, the concept of mass production and economies of scale came about.

Bigness, trusts, and vertical integration became the key to riches at that time. It was Andrew

Carnegie and J. P. Morgan in steel, John D. Rockefeller and Frank Kenan in oil, and Henry Ford in

automobiles. While some of these titans had questionable ethics, no one can deny that they were

innovators. They forged alliances, developed new ways of doing business, and created efficiency

across industries.

It was the combination of energy and engine that freed man from the constraints of muscle power,

making the Atlantic world the greatest military power and laying the foundations for the locomotive,

the internal combustion engine, the automobile, and the discovery of oil. The telegraph and

telephone connected humanity around the world. With electricity, we lit up the night.

The Invention of Money

Early trade consisted of barter (one good for another). If Tom had twenty cows and Igor had eighty

hens, and Tom and Igor agreed that one cow was worth four hens, then the trade could take place.

The problem with the barter system, however, was that in order for a trade to take place, both

parties had to want what the other party had. This “co-incidence of wants” often did not happen.

Thus, the demands of growing business and trade gave rise to a money system. Silver rings or bars

are thought to have been used as money in Ancient Iraq before 2000 B.C. Early forms of money

(called specie) would be often be commodities like seashells, tobacco leaves, large round rocks, or

beads.3

While the money system still had much development to go through (credit and paper money did not

yet exist), its invention over four thousand years ago was of crucial importance to the world we live

in today. The use of money, an accepted medium to store value and enable exchange, has greatly

enhanced our world, our lives, our potential, and our future.

By the year 1100, the prevailing cultural system in the Western World was feudalism. It was a world

of kings and lords, vassals and serfs, kingdoms and manors. Long-distance trade was expanding and

new worlds of foreign spices, oriental treasures, and luxurious silks were discovered. Three hundred

and fifty years later, after weathering a Black Death and the Hundred Years War, Europe emerged by

expanding trade to new levels and building the foundation for the start of the competitive market

economy we know today.

Bethlehem Steel Corporation (1857-2001)

Bethlehem Steel Corporation was America's second-largest steel producer and largest shipbuilder.

Bethlehem Steel and a subsidiary company, Bethlehem Shipbuilding Corporation, were two of the

most powerful symbols of American industrial manufacturing leadership. Their demise is often cited

as one of the most prominent examples of the U.S. economy's shift away from industrial

manufacturing, its inability to compete with cheap foreign labor, and management's penchant for

short-term profits.

Founding

The company's roots go back to 1857 when the Saucona Iron Company was first organized by

Augustus Wolle. The Panic of 1857, a national financial crisis, halted further organization of the

company and construction of the works. Eventually, the organization was completed, the site moved

elsewhere in South Bethlehem, and the company's name was changed to the Bethlehem Rolling Mill

and Iron Company. On June 14, 1860, the board of directors of the fledgling company elected Alfred

Hunt president.

On May 1, 1861, the company's title was changed again, this time to the Bethlehem Iron Company.

Construction of the first blast furnace began on July 1, 1861, and it went into operation on January 4,

1863. The first rolling mill was built between the spring of 1861 and the summer of 1863, with the

first railroad rails being rolled on September 26. A machine shop, in 1865, and another blast furnace,

in 1867, were completed. During its early years, the company produced rails for the rapidly

expanding railroads and armor plating for the US Navy.

In 1899, the company assumed the name Bethlehem Steel Company. In 1904, Charles M. Schwab

and Joseph Wharton formed the Bethlehem Steel Corporation with Schwab becoming its first

president and chairman of its board of directors.

The Bethlehem Steel Corporation installed the grey rolling mill and producing the first wide-flange

structural shapes to be made in America. These shapes were largely responsible for ushering in the

age of the skyscraper and establishing Bethlehem Steel as the leading supplier of steel to the

construction industry.

In the early 1900s, the corporation branched out from steel, with iron mines in Cuba and shipyards

around the country. In 1913, it acquired the Fore River Shipbuilding Company of Quincy,

Massachusetts, thereby assuming the role of one of the world's major shipbuilders. In 1917 it

incorporated its shipbuilding division as Bethlehem Shipbuilding Corporation, Limited. In 1922, it

purchased the Lackawanna Steel Company, which included the Delaware, Lackawanna and Western

Railroad as well as extensive coal holdings.

The Coca-Cola Company (1887- Present)

As one of the most highly recognized soft drink brands in the world today, many people love Coca

Cola because of its sweet fine taste and refreshingly nice flavor. Introduced since 1886, this product

is manufactured by the Coca-Cola Company. Today, it comes in different enticing varieties including

Coca-Cola Vanilla, Coca-Cola Zero and Diet Coke. In order to know more about this great product, it

is good to learn its history including information on the person who invented Coca Cola.

The Invention of Coca Cola

Who invented Coca Cola? Released in 1886, the recipe for this highly popular soft drink was invented

by John Pemberton some time in 1885. Its original name was Pemberton’s French Wine Coca, which

was basically an alcoholic beverage made up of cocaine and wine. At first, the intended purpose for

developing such product was to treat different kinds of illnesses including impotence, headache as

well as neurasthenia. Likewise, it was also used to cure other diseases such as dyspepsia and

morphine addiction.

Additional Facts and Other Important Information

The invention of Coca-Cola started out when Pemberton was working as a chemist and druggist in

Columbus, Georgia. In his quest to produce a coca wine, he combined damiana, kola nut and coca,

and later on called the mixture Pemberton’s French Wine Coca. Because of the temperance

legislation that was implemented in Fulton County and Atlanta some time in 1885, he decided to

create a non-alcoholic variant of the original mixture. Frank Mason Robinson, who was then a

significant marketer of the product during those times, coined the name Coca-Cola.

Pemberton advertised his product as invigorating, exhilarating, refreshing and delicious.

Furthermore, he claimed that it brought different health benefits to drinkers. He said that this

formula could calm nerves, relieve exhaustion and cure headaches. The business was later on sold to

Asa Candler. Coke was served in bottles for the first time in 1894. When World War II arrived, the

company decided to set up bottling plants in different areas including the Pacific, Africa and Europe.

This was probably the start of its introduction internationally.

As the years went by, numerous variations of the product emerged. In 1983, the Caffeine-Free Coca-

Cola was launched. Two years after, specifically in 2005, Coca-Cola Cherry was released. In North

America, this product was referred to as Cherry Coke. From 1985 to 2002, New Coke became

available to the public. Coca-Cola Lemon was launched in 2001, which is still available in countries

like the United States, the United Kingdom and Finland among numerous other countries. Some of

the latest variants of this delicious soft drink include the Coca-Cola Citra in 2006, the Coca-Cola

Orange in 2007 and the Coca-Cola Classic in 2008.

Harley-Davidson (1907- Present)

In 1901, William S. Harley, age 20, drew up plans for a small engine with a displacement of 7.07 cubic

inches (116 cc) and four-inch (102 mm) flywheels. The engine was designed for use in a regular

pedal-bicycle frame. Over the next two years, Harley and his childhood friend Arthur Davidson

worked on their motor-bicycle using the Northside Milwaukee machine shop at the home of their

friend, Henry Melk. It was finished in 1903 with the help of Arthur's brother, Walter Davidson. Upon

testing their power-cycle, Harley and the Davidson brothers found it unable to climb the hills around

Milwaukee without pedal assistance. They quickly wrote off their first motor-bicycle as a valuable

learning experiment.

Work immediately began on a new and improved second-generation machine. This first "real"

Harley- Davidson motorcycle had a bigger engine of 24.74 cubic inches (405 cc) with 9.75 inches (25

cm)

Flywheels weighing 28 lb. (13 kg). The machine's advanced loop-frame pattern was similar to the

1903 Milwaukee Merkel motorcycle (designed by Joseph Merkel, later of Flying Merkel fame). The

bigger engine and loop-frame design took it out of the motorized bicycle category and marked the

path to future motorcycle designs. The boys also received help with their bigger engine from

outboard motor pioneer Ole Evinrude, who was then building gas engines of his own design for

automotive use on Milwaukee's Lake Street.

Conclusion

Entrepreneurial activities differ substantially depending on the type of organization and creativity

involved. Entrepreneurship ranges in scale from solo projects, and even just part-time projects, to

major undertakings that create many job opportunities. Many "high value" entrepreneurial ventures

seek venture capital or angel funding (seed money) in order to raise capital for building the business.

Angel investors generally seek annualized returns of 20–30% and more, as well as extensive

involvement in the business. Many organizations exist to support would-be entrepreneurs including

specialized government agencies, business incubators, science parks, and some NGOs. More

recently, the term entrepreneurship has been extended to include conceptualizations of

entrepreneurship as a specific mindset (see also entrepreneurial mindset) resulting in

entrepreneurial initiatives e.g. in the form of social entrepreneurship, political entrepreneurship, or

knowledge entrepreneurship