Modern Management: concepts and skills, 14/e

Fundamentals of Entrepreneurship

Entrepreneurship can be defined in a variety of ways. Most people believe that entrepreneurship entails an individual starting a new business to make money, but the meaning of the term is actually much broader. For our purposes, entrepreneurship refers to the identification, evaluation, and exploitation of opportunities.2 Figure A2.1 illustrates this process. Opportunities, in a general sense, are appropriate or favorable occasions.3 In the entrepreneurship sense, though, the definition of opportunity is slightly different. Specifically, an entrepreneurial opportunity is an occasion to bring into existence new products and services that allow outputs to be sold at a price greater than their cost of production. ...