Definition Of Entrepreneurship

Austrian economist Joseph Schumpeter 's definition of entrepreneurship placed an emphasis on innovation, such as:

• new products
• new production methods
• new markets
• new forms of organization

Wealth is created when such innovation results in new demand. From this viewpoint, one can define the function of the entrepreneur as one of combining various input factors in an innovative manner to generate value to the customer with the hope that this value will exceed the cost of the input factors, thus generating superior returns that result in the creation of wealth.


Define Entrepreneur

An Entrepreneur recognizes opportunities to introduce new producst, new processes or an improved organization.

An Entrepreneur raises the necessary money, assembles the factors for production and organizes an operation to exploit the opportunity.