ENTREPRENEURSHIP

Desain

1. Nature and Basic Concepts of Entrepreneurship

Entrepreneurship first appeared in the 18th century starting with new inventions such as the steam engine, spinning machine, etc. Their main goal is the growth and expansion of the organization through innovation and creativity. Profit and wealth is not the main goal.

In simple terms, the entrepreneur (entrepreneur) is a person who has the courage to take risks to open a business on various occasions. Dare to take risks means to be mentally independent and dare to start a business, without being overwhelmed by fear or anxiety even in uncertain conditions. (Kasmir, 2007: 18).

The definition of entrepreneurship is relatively different between experts/reference sources with different emphasis or emphasis, including the creation of new organizations (Gartner, 1988), carrying out new combinations (activities) (Schumpeter, 1934), exploring various opportunities. (Kirzner, 1973), face uncertainty (Knight, 1921), and get together the factors of production (Say, 1803).

Some of the definitions of entrepreneurship include the following:

1) Richard Cantillon (1775): Entrepreneurship is defined as self-employment. An entrepreneur buys goods today at a certain price and sells them in the future at an uncertain price. So this definition places more emphasis on how a person deals with risk or uncertainty

2) Jean Baptista Say (1816): An entrepreneur is an agent who unites various means of production and finds value from their production.

3) Frank Knight (1921): Entrepreneurs try to predict and respond to market changes. This definition emphasizes the role of entrepreneurs in dealing with uncertainties in market dynamics. An entrepreneur is required to carry out basic managerial functions such as directing and supervising

4) Joseph Schumpeter (1934): An entrepreneur is an innovator who implements changes in the market through new combinations.

**The new combination can be in the form of

(1) introduce a new product or with a new quality,

(2) introduce new production methods,

(3) opening a new market,

(4) Obtaining new sources of supply of new materials or components, or

(5) run a new organization in an industry. Schumpeter associated entrepreneurship with the concept of innovation applied in a business context and associated it with a combination of resources.

4) Penrose (1963): Entrepreneurial activity includes the identification of opportunities in the economic system. Managerial capacity or ability is different from entrepreneurial capacity.

5) Harvey Leibenstein (1968, 1979): Entrepreneurship includes the activities needed to create or run a company when all markets have not been formed or have not been clearly identified, or the components of the production function are not fully known.

6) Israel Kirzner (1979): Entrepreneurs recognize and act on market opportunities. Entrepreneurship Center at Miami University of Ohio Entrepreneurship as the process of identifying, developing, and bringing a vision to life. The vision can be an innovative idea, an opportunity, a better way of doing things. The end result of the process is the creation of a new business that is formed under conditions of risk or uncertainty.

7) Peter F. Drucker: Entrepreneurship is the ability to create something new and different. This understanding implies that an entrepreneur is a person who has the ability to create something new, different from the others. Or being able to create something different from what already existed before.

8) Zimmerer: Entrepreneurship as a process of applying creativity and innovation in solving problems and finding opportunities to improve life (business).

One conclusion that can be drawn from these various understandings is that entrepreneurship is seen as a function that includes the exploitation of opportunities that arise in the market. The exploitation is mostly related to the direction and or combination of productive inputs. An entrepreneur is always required to face risks or opportunities that arise, and are often associated with creative and innovative actions. Entrepreneurs are people who change the value of resources, labor, materials and other factors of production to be greater than before and also people who make changes, innovations and new ways. In addition, an entrepreneur plays a managerial role in his activities, but routine management of ongoing operations is not classified as entrepreneurship. An individual may perform an entrepreneurial function when forming an organization, but subsequently perform a managerial function without carrying out his entrepreneurial function. So entrepreneurship can be temporary or conditional.

Another conclusion from entrepreneurship is the process of creating something different in value by using the necessary effort and time, assuming the accompanying financial, psychological and social risks, and receiving monetary rewards and personal satisfaction.

The term entrepreneurship emerged later after and as the equivalent of entrepreneurship, which from the beginning some people were still not comfortable with the word private. Perceptions of entrepreneurship are the same as entrepreneurs as the equivalent of entrepreneurs. The difference is in the emphasis on self-reliance (private) on the entrepreneur and on the business (business) on the entrepreneur. The term entrepreneurship is now increasingly being used by people, especially because of the emphasis on the business side. However, considering the challenges faced by the younger generation at this time are many in the field of employment, then entrepreneurship education that leads to survival and independence should be more emphasized.

Slight differences in perceptions of entrepreneurs and entrepreneurs must be understood, especially by teachers so that the direction and objectives of the education provided are not wrong. If what is expected from the education provided is a figure or individual who is more steely-minded or in other words has more emotional intelligence (EQ) and intelligence (AQ) which plays a role in life (facing the challenges of life and life), then entrepreneurial education is more appropriate. On the other hand, if the direction and purpose of education is to produce individuals who are more shrewd in business or money, or to have more financial intelligence (FQ), then entrepreneurship education is more appropriate. Because the two aspects are equally important, the education provided now tends to use the word entrepreneurship. Entrepreneurial perceptions now include both financial and personal, social, and professional aspects (Soesarsono, 2002: 48)

  1. Characteristics and character of Entrepreneurs

Characteristics and character of entrepreneurship

  1. Confidence, independence, individualism and optimism
  2. Task and result oriented Need for achievement, profit oriented, perseverance and steadfastness, determination to work hard, have a strong drive, energetic and initiative
  3. Risk taking Ability to take reasonable risks and likes challenges
  4. Leadership Behavior as a leader, getting along with others, responding to suggestions and criticism
  5. Originality Innovative and creative and flexible
  6. Oriented to the future Looking to the future, perspective In a business context, an entrepreneur opens a new venture that leads to the emergence of new products or ideas about the provision of services.

Typical characteristics of entrepreneurs (Schermerhorn Jr, 1999):

  1. Internal control locus
  2. High energy level
  3. High need for achievement
  4. Tolerance of ambiguity
  5. Confidence
  6. Action oriented

Characteristics of Entrepreneurs (Masykur W)

  1. Desire to excel
  2. Desire to be responsible
  3. Preference for medium risk
  4. Perception of the possibility of success
  5. Stimulus for feedback
  6. Energetic Activity
  7. Orientation to the future
  8. Skills in organizing
  9. Attitude to money

Successful entrepreneurs have a high standard of achievement (n Ach). The entrepreneurial potential can be seen as follows: (Masykur, Winardi)

  1. Innovative ability
  2. Tolerance of ambiguity
  3. Desire to excel
  4. Realistic planning ability
  5. Goal-oriented leadership
  6. Objectivity
  7. Personal responsibility
  8. Adaptability (Flexibility)
  9. Ability as an organizer and administrator
  10. High level of commitment (survival)

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