Entrepreneurship Case

The main reason entrepreneurs start a business is to work for themselves and make a profit. Making a profit will ultimately be the main goal of the business that is started. Entrepreneurial profits, from the entrepreneur’s perspective, is the difference between receipts and disbursements in a business (Schumpeter, 1934). This means that making money is the different between being in business and staying in business. The person who starts a business also has to make a living in order to survive. By making a profit, the company will do well, have many customers, and maybe even expand. Entrepreneurs think differently than anyone else who has a job. They think about how products and services can make them money and how it can generate business. Prior knowledge of an industry, good, or process can help entrepreneurs reduce the uncertainty that they are faced with (Hisrich, Peters, & Shepherd, 2013). Entrepreneurs often see an opportunity to make a profit but it can also be a risk.

Making a profit is what entrepreneurs want and what drives them. It doesn’t matter what kind of business you have, you still want and need to make profits. By starting a business you take a risk of failing. Most people take the risk with starting a business and sometimes it works but sometime it doesn’t always work. Starting a business can costs lots because there is a lot to do. Entrepreneurs have to find a building, find employees, and etc. Entrepreneurs need to make sure the business they start will make a profit and is worth the risk.

In the article by Schumpeter, he defines and describes five innovations that define entrepreneurial acts. The five types of innovations are: the introduction of a new good, the introduction of a new method of production, the opening of a new market, the conquest of a new source of supply materials or goods, and the carrying out of the new organization of any industry (McCraw, 2008). The five acts of innovations help