WHAT IS ENTREPRENEURSHIP?

DEFINITION OF ENTREPRENEURSHIP
Entrepreneurship is the process of starting a business or other organization. The entrepreneur develops a business model, acquires the human and other required resources, and is fully responsible for its success or failure.

ENTREPRENEURSHIP THEORY
1) Economic Theories
Economic entrepreneurship theories date back to the first half of the 1700s with the work of Richard Cantillon, who introduced the idea of entrepreneurs as risk takers. The classic, neoclassical and Austrian Market process schools of thought all pose explanations for entrepreneurship that focus, for the most part, on economic conditions and the opportunities they create. Economic theories of entrepreneurship tend to receive significant criticism for failing to recognize the dynamic, open nature of market systems, ignoring the unique nature of entrepreneurial activity and downplaying the diverse contexts in which entrepreneurship occurs.
2) Resource-Based Theories
Resource-based theories focus on the way individuals leverage different types of resources to get entrepreneurial efforts off the ground. Access to capital improves the chances of getting a new venture off the ground, but entrepreneurs often start ventures with little ready capital. Other types of resources entrepreneurs might leverage include social networks and the information they provide, as well as human resources, such as education. In some cases, the intangible elements of leadership the entrepreneur adds to the mix operate as resource that a business cannot replace.
3) Psychological Theories
Psychological theories of entrepreneurship focus on the individual and the mental or emotional elements that drive entrepreneurial individuals. A theory put forward by psychologist David McCLelland, a Harvard emeritus professor, offers that entrepreneurs possess a need for achievement that drives their activity. Julian Rotter, professor emeritus at the University of Connecticut, put forward a locus of control theory. Rotter’s theory holds that people with a strong internal locus of control believe their actions can influence the external world and research suggests most entrepreneurs possess trait. A final approach, though unsupported by research, suggests personality traits ranging from creativity and resilience to optimism drive entrepreneurial behavior.
4) Sociological/Anthropological Theories
The sociological theory centers its explanation for entrepreneurship on the various social contexts that enable the opportunities entrepreneurs leverage. Paul D. Reynolds, a George Washington University research professor, singles out four such contexts: social networks, a desire for a meaningful life, ethnic identification and social-political environment factors. The anthropological model approaches the question of entrepreneurship by placing it within the context of culture and examining how cultural forces, such as social attitudes, shape both the perception of entrepreneurship and the behaviors of entrepreneurs.
5) Opportunity-Based Theory
Prolific business management author, professor and corporate consultant, Peter Drucker put forward an opportunity-based theory. Drucker contends that entrepreneurs excel at seeing and taking advantage of possibilities created by social, technological and cultural changes. For example, where a business that caters to senior citizens might view a sudden influx of younger residents to a neighborhood as a potential death stroke, an entrepreneur might see it as a chance to open a new club.

CHARACTERISTICS OF ENTREPRENEUR
1) Passion
A startup founder is often driven by the quest for deeper purpose beyond the sheer mechanics of operating a business. My mission for my startup, Yes Man Watches, is to empower people to consider the most valuable asset in their lives: time. I rise early every morning because I don’t want to waste my day. If you have passion for your startup, this will drive you to turn your idea into a reality. Without that missing spark, you'll lack the necessary motivation to put in all the early mornings and late nights to get your business off the ground.
2) Perseverance
Entrepreneurs need to be able to deal with obstacles. A business does not get built overnight, and turning your idea into a reality will take time. You'll have to become accustomed to people saying no to you. What makes entrepreneurs great is having the perseverance to grow regardless of how many times they are shut down. When creating the supply chain for my startup, we screened two dozen watch manufacturers. After approaching through about 10, I became quite frustrated at hearing that my company's patent-pending buckle couldn’t be made. Without perseverance, I would have given up.
3) Resourcefulness
A vital ability for an entrepreneur is knowing how to make the most of what you have. Your assets as an entrepreneur will be limited, so use them to the fullest. Tapping into a network is key. When looking for a photographer, I reached out to the photography department at my university and the staff sent an email blast to students looking to build their portfolio. Within a week, I had professional-looking photos.
4) Open-Mindedness
As an entrepreneur, you may think you've zeroed in on a business plan, but you'll need to learn to take in the opinions of others. Then if it appears that your plan won’t work, then adjust. As Mark Cuban once said, “Follow the green, not the dream.” If your dream startup won’t make you any money, you may need to change your focus. When my friend Morgan Schwanke started OnMyBlock, he originally wanted to focus solely on a social platform for college students to find off-campus housing. He now concentrates his startup on every aspect of renting an off-campus space; it provides tenant listings to landlords and facilitates the making of rent payments.
5) Spongelike nature
Being an entrepreneur involves a learning process. If you’re not willing to learn, think about leaving the startup world. You need to be able to soak in everything and anything you can, just like a sponge. The more you learn, the better. A saying I'm fond of is “One who knows all the answers has not been asked all the questions.” When starting Yes Man Watches, I honestly didn’t know anything about watchmaking. I looked up everything I could and soaked in all the information. Now I know quite a bit about watches, from the types of stainless steel used to make the watch case and the variety of battery powering the watch movements.