This is “The Importance of Being Entrepreneurial and Being a Short-Term Monopolist”, section 1.2 from the book Creating Services and Products (v. 1.0). For details on it (including licensing), click here.
This book is licensed under a Creative Commons by-nc-sa 3.0 license. See the license for more details, but that basically means you can share this book as long as you credit the author (but see below), don't make money from it, and do make it available to everyone else under the same terms.
This content was accessible as of December 29, 2012, and it was downloaded then by Andy Schmitz in an effort to preserve the availability of this book.
Normally, the author and publisher would be credited here. However, the publisher has asked for the customary Creative Commons attribution to the original publisher, authors, title, and book URI to be removed. Additionally, per the publisher's request, their name has been removed in some passages. More information is available on this project's attribution page.
For more information on the source of this book, or why it is available for free, please see the project's home page. You can browse or download additional books there. To download a .zip file containing this book to use offline, simply click here.
The notion of the entrepreneurial enterprise as a monopolist is not new. Indeed, it has a long tradition and history. KirznerKirzner (1973). noted in 1973 that entrepreneurship may be a step to monopoly power. It is possible to acquire market power by adding unique features or services that are not offered by the competition. When the unique features of a product are combined with a well-thought-out production and distribution process and an understanding of the competitive environment, the results are usually positive. This knowledge and the unique knowledge resources are of course transitory, but in the short run they can provide for near-monopoly power.
Entrepreneurship is currently being viewed as a set of skills that are part of a rational and logical process for identifying and creating opportunities.Sarasvathy and Venkataraman (2008). The process and the skills have been likened to learning how to read, write, calculate, and conduct scientific reasoning. Being a successful entrepreneur requires insight and knowledge of problem solving, strategic planning, new product development, project management, and portfolio management among others. An important reason for participating in the entrepreneurial process is that it involves a significant amount of making and building things. This, in turn, leads to learning-by-doing and the creation of new unforeseen opportunities because you have been participating in the entrepreneurial process. Participation in entrepreneurial activity leads to the creation of opportunities in the form of products and services that were not even conceptualized or anticipated in the beginning. The entrepreneurial process actually creates new markets via innovation and product differentiation. Our definition of entrepreneurship focuses on a continuous process for creating new and enhanced products and services.
EntrepreneurshipA risky endeavor involving the continuous creation and re-creation of a new enterprise, a new product, or a new idea. is a risky endeavor involving the continuous creation and re-creation of a new enterprise, a new product, or a new idea.
The origin of the word entrepreneur can be traced to Old French. EntrepreneursIndividuals who undertook risky endeavors such as theatrical productions. were individuals who undertook risky endeavors such as theatrical productions. Risk is an inherent part of entrepreneurship. If there is no risk involved and there is still money to be made, then the endeavor is probably a gift.