Faisal- Entrepreneurship and New Enterprise Creation Essay

Faisal- Entrepreneurship and New Enterprise Creation - Essay Example Dated: _________________ Student’s Signature Entrepreneurship and New Enterprise Creation Introduction We cannot help acknowledging as we look around ourselves that everything we own, eat, drink and make use of for different daily activities are the products of some business enterprise or the other. This fact being established as an irrefutable truth, it shows the power and importance that businesses, large or small, have in our lives. Even if we are not in the least concerned with the nuts and bolts of how a business operates in the real world, we must nevertheless go out of our houses and buy or sell something of value to the world in order to survive. Few of us have the satisfaction of running our own business enterprise or marketing our own services or products. The vast majority of humankind chooses to work for a business enterprise or an entrepreneur who pays them a weekly, fortnightly or monthly remuneration for rendering their services in his business enterprise. ... Entrepreneur or Business Owner- Is There a Difference? Although most of us would assume that entrepreneurs and the owners of a business are very much the same, the truth could be remarkably different. In the last 100 years or so, capitalists have used their wealth to accumulate more wealth and prosperity by investing in a good business idea or capitalizing upon an opportunity to fulfill a need. They usually use the services of entrepreneurs to hit upon a good idea. Indeed some of these people even ask for good ideas through the newspaper- they are known as venture capitalists. Let us consider an inventor or scientist who has invented a system to convert waste water into drinking water. He wants to perfect this system and patent and market it on a large scale. If he does not have any assets and is finding it difficult to raise a bank loan for this purpose, he can go to a venture capitalist and show that person his idea (Sahlman et al, 1999). If deemed practicable and profitable, the v enture capitalist may buy out his idea, get it patented and marketed on a large scale so that it is useful and profitable. Here the venture capitalist is playing the role of both capitalist and entrepreneur- getting a useful idea out into the world stage. Good and innovative ideas worth patenting are worth millions of dollars sometimes. At other times, business operations may be contracted out to other experts who have the skills but no access to capital. So it is not necessary that the business owner and entrepreneur be one and the same. I have asked Mr. Andrew Cavendish, owner and partner in the business Creative Furnitures, whether he regards himself as an owner or an entrepreneur. Andrew feels he started out as more of