External Threats Of Entrepreneurship

1523 Words7 Pages
Entrepreneurship according to Onuoha (2007), “is the practice of starting new organizations or revitalizing mature organizations, particularly new businesses generally in response to identified opportunities.” Schumpeter (1965) defined “entrepreneurs as individuals who exploit market opportunity through technical and or organizational innovation”. For Frank H. Knight (1921) and Peter Drucker (1970) “entrepreneurship is about taking risk”. Bolton and Thompson (2000) have defined an entrepreneur as “a person who habitually creates and innovates to build something of recognized value around perceived opportunities”.

Harwood et al., (1999), states that “…risk is uncertainty that matters and may involve the probability of losing money, possible harm to human health, repercussions that effect resources and other types of events that affect a person’ welfare.”Threats on the other hand can be external or internal and refer to anything which can adversely affect a business. They can be external or internal, external threats could be inflation, political instability, technological factors, socio cultural factors, new legislation or a new competitor in the market. Whilst internal threats are forces which affect the business from within and these could include a skill or staff shortage within an organization. Entrepreneurs are risks takers, they are willing to put their career, personal finances and health at stake. Entrepreneurs argue that the higher the risk, the higher the return
Open Document