ENTREPRENEURSHIP

Entrepreneurship is the ability and readiness to develop, organize and run a business enterprise,
along with any of its uncertainties in order to make a profit. The most prominent example of
entrepreneurship is the starting of new businesses.

The Beginnings of Entrepreneurship and Trade

Believe it or not, the first entrepreneurs can be traced back to nearly 20,000 years ago. The first
known trading between humans took place in New Guinea around 17,000 BCE, where locals would
exchange obsidian (a volcanic glass prized for its use in hunting tools) for other needed goods – like
tools, skins, and food.
This early type of entrepreneurship continued for millennia. Hunter-gatherer tribes would trade
goods from different parts of their respective regions to provide an overall benefit for their tribe.

Entrepreneurship and the Agricultural Revolution

The first big shift in entrepreneurship took place during the Agricultural Revolution, which
occurred about 12,000 years ago. You probably already know the story about the Agricultural
Revolution, but here’s a brief refresher: humans started to domesticate plants and animals. Instead of
having to roam, forage, and hunt for their food in different regions throughout the year, human
populations could remain stationary in one location and farm the land.

The Expansion of Trade Routes from 2000 BCE Onward

Between the Agricultural Revolution and 2000 BCE, cities started to appear around the world.
Early areas of civilization were concentrated around rivers, particularly the Nile, the Tigris and
Euphrates, the Indus, and the Yellow and Yangtze.
By 3,000 BCE, cities in Sumeria (modern day Iraq) contained tens of thousands of people. The
city of Uruk, found on the banks of the Euphrates, was home to 50,000 people in the same amount of
space that would have previously supported just one tribe of hunter-gatherers.

Entrepreneurship and the Invention of Money

One of the key developments in the history of entrepreneurship (and in human history) was the
invention of money.
Prior to the invention of money, all entrepreneurship and trade took place through the barter
system. If John wanted 5 bars of iron, then he might have to sell 1 horse to get those bars. Of course,
he would also need to find an iron merchant who needed a horse.
The limits of the barter system were known as a “coincidence of wants.” Understandably, this
vastly limited trade and entrepreneurship in early history.
Currency changed all that. Some of the earliest forms of currency were found in ancient Iraq in
the forms of silver rings and silver bars. Starting in 2000 BCE, early forms of money have been
discovered. These forms of money were called specie and changed widely throughout the world:
some cultures used seashells, for example, while others used tobacco leaves, beads, or large round
rocks.

PEOPLE BEHIND
The concept of entrepreneurship has evolved over time, and various individuals have
contributed to shaping and popularizing it. While it's challenging to pinpoint a single origin or person
responsible for the concept, several figures have played crucial roles in the development of
entrepreneurship. Here are some key individuals who have influenced the concept of
entrepreneurship:

1. Richard Cantillon (1680–1734): Often considered the "father of entrepreneurship," Cantillon was
an Irish-French economist and author of "Essai sur la Nature du Commerce en Général" ("Essay on the
Nature of Trade in General"), where he introduced the term "entrepreneur" to describe individuals
who take risks and allocate resources to create new ventures.

2. Jean-Baptiste Say (1767–1832): A French economist, Say contributed significantly to the

development of economic theory and introduced the concept of entrepreneurship in his works. He
emphasized the role of entrepreneurs as drivers of economic progress and wealth creation.
3. Joseph Schumpeter (1883–1950): An Austrian economist, Schumpeter is known for his theory of
"creative destruction." He highlighted the role of entrepreneurs in introducing innovation and
disrupting existing economic structures, leading to the continuous renewal of the economy.

4. Peter Drucker (1909–2005): An influential management theorist, Drucker emphasized the

importance of innovation and entrepreneurship in business. His writings, including "Innovation and
Entrepreneurship: Practice and Principles," had a profound impact on shaping modern management
concepts.

5. David Birch: An economist known for his research on small businesses and entrepreneurship.
Birch's work, including the concept of the "gazelle" firm (fast-growing, innovative companies), has
contributed to the understanding of the economic impact of entrepreneurship.

6. Bill Gates and Steve Jobs: Founders of Microsoft and Apple, respectively, these tech
entrepreneurs played pivotal roles in popularizing the idea of starting and growing innovative
businesses. Their success stories inspired a generation of aspiring entrepreneurs.

7. Mark Zuckerberg: Co-founder of Facebook, Zuckerberg is a prominent figure in the modern era of
entrepreneurship, particularly in the technology and social media sectors. His success has influenced
many aspiring entrepreneurs, highlighting the potential for massive impact through innovative ideas.

These individuals, among others, have collectively shaped the concept of entrepreneurship
through their theories, writings, and practical contributions. The field continues to evolve, with
contemporary entrepreneurs making new contributions to the understanding and practice of
entrepreneurship.

HOW DID ENTREPRENEURSHIP EMERGE

The concept of entrepreneurship has a long and complex history, evolving over centuries as
economic, social, and technological changes occurred. While it's challenging to pinpoint a single
moment of emergence, we can trace the development of entrepreneurship through key historical
periods:

 Mercantile Era (16th–18th centuries): The mercantile era marked the beginning of modern
commerce and trade. Merchants and traders played entrepreneurial roles by taking risks in
long-distance trade, financing expeditions, and investing in overseas ventures. This period laid
the groundwork for the concept of individuals actively engaging in business activities for profit.

 Industrial Revolution (18th–19th centuries): The Industrial Revolution brought about significant
technological advancements and the rise of factory-based production. Entrepreneurs during this
time were often inventors and industrialists who established and scaled up manufacturing
enterprises. This period emphasized innovation and the transformation of economies from
agrarian to industrial.

 The Rise of Capitalism and Economic Theory (18th–19th centuries): Economic thinkers like
Adam Smith and Jean-Baptiste Say contributed to the understanding of entrepreneurship within
the framework of capitalism. Smith's "The Wealth of Nations" (1776) highlighted the role of
self-interest and competition in economic development, while Say emphasized the
entrepreneurial function of coordinating resources and risks.

 Cantillon and the Entrepreneurial Concept (18th century): Richard Cantillon, an Irish-French
economist, introduced the term "entrepreneur" in his work "Essai sur la Nature du Commerce en
Général" ("Essay on the Nature of Trade in General"). Cantillon defined entrepreneurs as
individuals who take risks by investing in ventures and allocating resources to generate profits.

 Schumpeter's Creative Destruction (20th century): Joseph Schumpeter, an Austrian economist,

introduced the concept of "creative destruction" in the early 20th century. He emphasized the
 role of entrepreneurs in driving economic progress through innovation and the constant
disruption of existing economic structures.

 Post-World War II Era: The aftermath of World War II saw a surge in entrepreneurship,
particularly in the United States. The GI Bill provided education and housing benefits to returning
veterans, fostering a culture of innovation and entrepreneurship. This era witnessed the growth
of small businesses and the emergence of iconic entrepreneurs like Walt Disney and Ray Kroc.

 Digital Age (late 20th century – present): The advent of the internet and digital technologies has
transformed the entrepreneurial landscape. The rise of tech entrepreneurs like Bill Gates, Steve
Jobs, and Mark Zuckerberg exemplifies the role of innovation and disruption in contemporary
entrepreneurship. The digital age has facilitated global connectivity and provided new
opportunities for aspiring entrepreneurs.

Throughout history, entrepreneurship has evolved in response to economic, technological, and

societal changes. It continues to be a dynamic and vital force in shaping economies and driving
innovation across the globe.