The word 'entrepreneur' in modern English refers to the founder of a business or the owner of an innovative company. The meaning can be explained in two ways. First, entrepreneurship is the activity of establishing a new business or business to pursue an opportunity, so in that sense, the entrepreneur is seen as an innovator or pioneer. Second, entrepreneurship is the activity of someone who leads, manages, takes risks, and also becomes owner of a business or often referred to as owner manager.
In the Indonesian repertoire, entrepreneurship is the equivalent of entrepreneurship, and the word entrepreneur is translated as an entrepreneur or entrepreneur, ie someone who works for his own business. This meaning is equivalent to the notion of entrepreneur as owner manager, ie someone who manages the business he has.
Static and Dynamic Definitions
Entrepreneurship can be defined as business ownership, namely the ownership of a person on the company that is self employment or small and medium enterprises. This understanding is quite biased, because there are also passive investors, ie investors who do not act as entrepreneurs can enter into the category of business owners. However, this notion, which we then refer to as the static definition of entrepreneurship, has become standard on several international scientific studies (Kokkinou, 2005).
Entrepreneurship in a dynamic standpoint is defined as the proportion of the number of start-up companies to the entire number of firms. The start-up calculation is measured as net growth or net start-up rate, ie the number of companies born minus the number of companies out of the market or industry, divided by the total number of firms (Wennekers, 2006). Global Entrepreneurship Monitor, establishes a dynamic indicator called an early-stage entrepreneurial activity based on Reynolds' calculation system (2005). The index, known as the Total early-stage Entrepreneurial Activity (TEA), is the proportion of working-age people operating companies less than 42 months of total working age population.
Entrepreneurship or entrepreneurship is the application of creativity and innovation to solve problems and exploit the opportunities facing people every day (Thomas W. Zimmerer, 2008 )
Category Entrepreneurship Based on Motivation
Every resident who has a duty in earning a living having the right to choose between working as an employee / worker in a company, as well as establishing his own business (either working alone or forming a group). According to the Global Entrepreneurship Monitor, from a motivational point of view, a person chooses to form and run his own business on the basis of:
- Starting a business in order to exploit or pursue opportunities which can generate income or profits in the future, referred to as opportunity entrepreneurship.
- Starting a business due to a factor of compulsion, due to the absence of better options other than to build its own business, called the necessity of entrepreneurship.
Stages of Entrepreneurship
There are stages by an entrepreneur in running his business. In general the stages of doing entrepreneurship:
The stage in which a person who intends to do business prepares for everything that is needed begins by looking at new business challenges or opportunities and is continued with the possibility and the desire to open a new business. This stage also chooses the type of business to be undertaken whether in agriculture, industry, or other services or businesses.
At this stage an entrepreneur manages various aspects related to his business, encompassing aspects: running the form of business, financing, human resources, ownership, organization, leadership that includes how to take risks and make decisions, marketing, and evaluate.
The stage in which entrepreneurs based on the results achieved has analyzed to overcome all problems and obstacles in running their business. Successful entrepreneurs are the ones who can keep their business from all the obstacles, challenges, and problems that exist so that the business can run smoothly.
d. The stage of developing a business
This stage is where the entrepreneur based on the results achieved in analyzing developments and innovations for follow-up according to the conditions at hand. In its development can be by increasing relationships, updating methods and systems, updating the resulting product, enlarge and expand the business, add quality, increase service, increase labor. In this stage entrepreneurs do long-term economic contribution to human, nature and environment. From the benefits of this business development can be obtained clearly, the contribution to the employment problem, that there will be additional labor.
The process of entrepreneurship begins with an axiom, which is a challenge. From these challenges arise the idea, the will and the drive to take the initiative, which is none other than to think creatively and act innovatively so that the challenge was resolved and solved. All challenges must have risks, which are either successful or unsuccessful. Therefore entrepreneur is a man who dare to face the risks and likes the challenge (Suryana, 2006)
Thus the definition of entrepreneurship according to experts includes explanations of categories and the stages of entrepreneurship or entrepreneurial activity.