Abstract:
The paper is reviewing the characteristics of entrepreneurship
presenting several indices that measure aspects of entrepreneurial attitudes,
activity and aspirations, related to the phases of economic development. It is
considered to be the first who defined the entrepreneurship as someone who
identified the willingness to bear the personal financial risk of a business
venture. There are different and interesting historical views of
entrepreneurship in the recent literature, as well as over time. These are
reflecting the roles of the entrepreneurship in each of the three economic
phases. Phases of economic development are decided on the level of GDP
per capita and the extent to which countries are factor driven in terms of the
shares of exports of primary goods in total exports. Perceptions about
entrepreneurship may affect the supply side and the demand side of
entrepreneurship. On the supply side, or the “pool” of potential
entrepreneurs, important perceptions include both willingness and perceived
ability to become an entrepreneur. Education levels and the availability of
entrepreneurship training programs are possible determinants of perceived
skills. On the demand side, or “space for” entrepreneurship, there needs to
be opportunities for entrepreneurship, but equally important is that
entrepreneurs perceive that there are opportunities for starting a business.
There are several assessments to be made; First, there is the assessment of
opportunity costs, which involves comparing the expected returns of
entrepreneurship to the expected returns of an alternative occupation. Then,
there is a risk-reward assessment: even if the expected returns from
entrepreneurship are considerably higher than the best alternative, the
(perceived) risks involved may be too high for a person who is thinking about
starting a business
