Entrepreneurs and Entrepreneurship

(Part I)

Anyone who owns and operates a business is often considered to be an entrepreneur. Entrepreneurs and small business owners are motivated by the possibility of earning profits. They also accept the risk of losing money if their businesses fail.

The word entrepreneur originates from the French word, entreprendre [ֽOntrə`prə:nd], which means “to undertake.” In a business context, it means to start a business. The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea, spending much time as well as capital on an uncertain venture.

Although the term is typically used to refer to anyone who owns or operates a small business, it has a more specific meaning. French economist Jean [Gi:n] Baptiste Say, who coined this term in 1800, used it to describe a very important activity. An entrepreneur, Say explained, is a person who is able to make decisions that allow more efficient use of economic resources.

Thus, in the truest sense of the word, entrepreneurs are people who develop ways to make more efficient use of resources in order to meet consumers’ needs and wants. An entrepreneur is a person who is willing and able to convert a new idea or invention into a successful innovation. Entrepreneurs enter business knowing that success is not guaranteed, and if plans fail, they could lose money.

Entrepreneurship is an incredible force. It is the engine of growth, jobs and opportunities. Entrepreneurship forces “creative destruction” across markets and industries, simultaneously creating new products and business models.

The essence of entrepreneurship is taking risk. Nevertheless, the concept of entrepreneurship has a wide range of meanings. On the one extreme an entrepreneur is a person of very high aptitude who pioneers change, possessing characteristics found in only a very small fraction of the population. On the other extreme of definitions, anyone who wants to work for himself or herself is considered to be an entrepreneur.

Indeed, entrepreneurial activities are substantially different depending on the type of organization that is being started. Entrepreneurship ranges in scale from solo projects to major undertakings creating many job opportunities. Many real-life entrepreneurs operate in teams rather than as single individuals.

Entrepreneurs have many of the same character traits as leaders. They need inspiration, motivation and sensibility. An entrepreneur is usually:

• a positive thinker and a decision maker;

• has an enthusiastic vision, the driving force of an enterprise;

• exhibits extreme optimism in the decision-making processes;

• is prone to overconfidence and overgeneralizations.

Vocabulary Notes:

1. to undertake [ֽAndə`teık] / [ֽAnd<sup>ə</sup>r`teık] – починати, братися; зобов’язуватися;

2. willing (to do smth) [`wılıŋ] – охочий; готовий щось зробити;

3. to put smth. on the line [laın] – ризикувати (чимось);

4. financial security [faı`næn<sup>t</sup>∫<sup>ə</sup>l sı`kjuərəti] – фінансова безпека;

5. to take risks [rısks] – брати на себе ризик;

6. in the name (of smth.) – в ім’я (чогось);

7. to coin [kOın] – творити; видумувати;

8. efficient [ı`fı∫^ənt] – дійовий, ефективний; умілий, кваліфікований (про людину);

9. resource [rı`zO:s] / [`ri:sO:rs] – ресурс;

10. to convert [kən`və:t] – обертати, перетворювати (на, у – into);

11. incredible [ın`kredəb^əl] – неймовірний, неправдоподібний;

12. engine [`enGın] – машина; мотор, двигун;

13. “creative destruction” [kri`eıtıv dı`strAk∫^ən] – “креативне руйнування”;

14. simultaneously [ֽsım^əl`teıniəsli] – разом, одночасно;

15. essence [`es^ən^ts] – суть, сутність, істотність;

16. an extreme [ık`stri:m] – крайність;

17. aptitude [`æptıtju:d] / [`æptıtu:d] – схильність; здібність; здатність;

18. to pioneer [ֽpaıə`nıə] / [ֽpaıə`nı^ər] – прокладати шлях, бути піонером; вести, керувати;

19. substantially [səb`stæn^t∫əli] – по суті; в основному; значною мірою; міцно, ґрунтовно;

20. scale [skeı^əl] – ступінь, рівень; масштаб; шкала;

21. part-time [ֽpα:t `taım] / [ֽpα:rt `taım] – на неповний робочий день; нештатний (про працівника);

22. major undertaking [`meıGə ֽAndə`teıkıŋ] – головна справа; велике підприємство;

23. inspiration [ֽınspə`reı∫^ən] – натхнення; вдихання; вплив, надихання, стимулювання;

24. sensibility [ֽsen^tsə`bıləti] – чутливість; точність (приладу); сприйнятливість;

25. to exhibit [ıg`zıbıt] – показувати, виявляти, проявляти (настрій, почуття);

26. to be prone (to) [prəun] – бути схильним (до чогось);

27. overconfidence [ֽəuvə`kOnfıdən^ts] – самовпевненість; самонадіяність;

28. overgeneralizations [ֽəuvəֽGen^ərəlaı`zeı∫^ən] – надмірне узагальнення.

Task 15. Tick the correct sentence.

Anyone who owns and operates a business is an entrepreneur. Not all small business owners are true entrepreneurs.	____ ____
Entrepreneurs accept the risk, spending much time and money on uncertain ventures. Entrepreneurship is not a venturesome undertaking.	____ ____
The word “entrepreneur” is of French origin. Etymology of the term “entrepreneur” is a matter of much debate.	____ ____
The word “entrepreneur” was coined by Adam Smith. Jean Baptiste Say is credited for creation of the term “entrepreneur”.	____ ____
Decisions made by entrepreneurs are based on extensive use of economic resources. True entrepreneurs are able to make decisions that allow more efficient use of economic resources.	____ ____
The essence of entrepreneurship is investing money. The essence of entrepreneurship is taking risk.	____ ____
The concept of entrepreneurship has a wide range of meanings. The concept of entrepreneurship has two major meanings.	____ ____
Entrepreneurship is generally represented by freelancers. Entrepreneurship ranges in scale from solo projects to big businesses.	____ ____
Many real-life entrepreneurs operate in teams rather than as single individuals. True entrepreneurs are always involved in solo projects.	____ ____
Entrepreneurs have many of the same character traits as leaders. Entrepreneurship has nothing to do with leadership.	____ ____

Task 16. a) Find synonyms among the words and phrases from the text “Entrepreneurs and Entrepreneurship” (Task 14).

1. Job; 2. idea; 3. sense; 4. career; 5. concept; 6. a person; 7. meaning; 8. to create; 9. to accept; 10. to reflect; 11. new idea; 12. to exhibit; 13. prone (to); 14. incredible; 15. possibility; 16. to develop; 17. substantial; 18. innovation; 19. motivation; 20. engine (of); 21. opportunity; 22. willing (to); 23. to take risks; 24. to undertake; 25. an individual; 26. to enter business; 27. to put on the line; 28. to accept the risk; 29. driving force (of); 30. to start a business; 31. to have character traits; 32. to possess characteristics.

Task 17. a) Use the -tion suffix to form nouns from the following verbs.

1. To apply;	3. to create;	5. to inspire;	7. to destruct;	9. to motivate;
2. to define;	4. to invent;	6. to operate;	8. to innovate;	10. to determine.

b) Use the correct noun or verb forms in the sentences. Change the grammatical form of the words if necessary.

1. apply

1. Theories are essentially meaningless without _____ in the real world.

2. When you start work you must _____ what you have learned at college.

2. define

1. A more technical _____ of “business” suggests production, distribution, and sale of goods and services for a profit.

2. The Act _____ “small companies” as firms with fewer than 25 employees.

3. create

1. European Economic Area is a free-trade area _____ in 1994.

2. The government is to provide more money for job _____.

4. invent

1. The best _____ are the simplest and most obvious.

2. Companies are _____ new ways of doing business together.

5. inspire

1. When asked, “What is genius?” Thomas Edison replied, “99 percent perspiration and 1 percent _____.”

2. Be _____!

6. operate

1. The company is seeking more funds to finance its _____.

2. The regulation _____ in favour of small businesses.

7. destruct

1. The engineers had to _____ the rocket for safety reasons.

2. By doubling its prices, the industry sowed the seeds of its own _____.

8. innovate

1. They have been the leaders in product _____.

2. We must constantly adapt and _____ to ensure success in a growing market.

9. motivate

1. These systems can _____ employees to become more productive.

2. Our real _____ is to make a profit.

10. determine

1. Thomas Edison displayed a high degree of curiosity and _____.

2. An orphan for many years, Gabrielle Coco Chanel was _____ to invent herself.

Task 18. Some words can be used both as a noun and a verb. Complete the table with the appropriate words from the text “Entrepreneurs and Entrepreneurship” (Task 14).

№	ІМЕННИК	ДІЄСЛОВО	ПЕРЕКЛАД
1.	Ризик	ризикувати; наважуватися, зважуватися (на щось);	-----------
2.	ризикована справа; авантюра; підприємство; сума, якою ризикують; ставка;	ризикувати (чимось), ставити на карту; відважуватися, зважуватися; насмілюватися, посміти;	-----------
3.	монета	карбувати; творити (нові слова);	-----------
4.	вживання; застосування; користування; право користування; мета, призначення; користь, вигода;	вживати, користуватися, застосовувати; споживати, витрачати;	-----------
5.	не(до)стача, брак, відсутність (of); необхідність (of); потреба, бажання; нужда, бідність;	хотіти, бажати; не вистачати, бракувати; вимагати; бути потрібним (необхідним); потребувати, відчувати необхідність;	-----------
6.	сила; дієвість, чинність	прискорювати, пришвидшувати (рух); додавати обертів (машині, мотору); напружувати; примушувати; нав’язувати;	-----------
7.	ринок; базар; торгівля; збут; ринкові ціни; амер. продовольчий магазин;	торгувати; купувати / продавати на ринку; реалізувати, збувати; знаходити ринок збуту;	-----------
8.	зразок; модель; макет; шаблон;	моделювати; створювати; формувати;	-----------
9.	піонер; перший поселенець (дослідник); першовідкривач; ініціатор; новатор;	прокладати шлях, бути піонером; вести, керувати.	-----------

Task 19. Fill in the blanks with the most appropriate terms from the box.

market	inventor	inspiration	application	accomplished
creative	inventions	astounding	perspiration	determination

Students of business can look toward Thomas Edison as a prime example of hard work. The volume of his work – 1,093 patents in 20 different areas – is (1)_____. Among his many (2)_____ were the incandescent light bulb, the phonograph, the alkaline storage battery, and the motion picture.

Edison found ways to use his knowledge in a practical way. His inventions were things that people could use. Edison once said, “An (3)_____ is essentially practical.” He felt that theories were essentially meaningless without (4)_____ in the real world. In the business world he was a realist; he would not (5)_____ a product without a firm belief that people would buy it because it was useful.

Edison displayed a high degree of curiosity and (6)_____. He immersed himself totally in the problem at hand, often working as many hours as necessary to find the solution. When asked, “What is genius?,” he replied, “99 percent (7)_____ and 1 percent inspiration.”

On the other hand, some of Edison’s ideas came about quite by accident while he was involved in other projects. Here the (8)_____ comes into play. Sometimes ideas come to us in a flash when our conscious minds are involved in other activities.

Although we cannot perhaps involve ourselves as totally in the (9)_____ process as Edison did, we can look at his life as an example of what can be (10)_____ due to hard work.

Task 20. Think and answer.

1. Who is considered to be an entrepreneur?

2. What are entrepreneurs motivated by?

3. What is the origin of the word “entrepreneur”?

4. What does the behaviour of the entrepreneur reflect?

5. When was the term “entrepreneur” coined?

6. Can any business owner be called an entrepreneur? Why?

7. What are entrepreneurs in the truest sense of the word?

8. Is entrepreneurship an incredible force?

9. How does entrepreneurship affect markets and industries?

10. What is the essence of entrepreneurship?

11. Does the concept of entrepreneurship have a range of meanings?

12. Can entrepreneurial characteristics be found in a large fraction of the population?

13. How do entrepreneurial activities range in scale?

14. Does entrepreneurship always suggest working solo?

15. What leadership qualities do entrepreneurs generally display?

Task 21. a) Give the nouns which correspond to the following verbs.

1. To manufacture;	4. to broadcast;	7. to produce;	10. to educate;
2. to accomplish;	5. to nominate;	8. to publish;	11. to learn;
3. to appreciate;	6. to dedicate;	9. to imagine;	12. to train.

b) Translate into Ukrainian paying special attention to the words in italics.

1. There are many successful entrepreneurs who didn’t need their college education. 2. While the founder of Mary Kay Inc. didn’t have a college education or any training, she successfully created a brand known throughout the world. 3. To date, nearly half a million women have started Mary Kay businesses, selling cosmetics. Their appreciation for Mary Kay Ash is unwavering (непохитна; непорушна). 4. Simon Cowell is a British music and television producer, who had the idea for some popular television programmes. 5. With $1,000, dedication and desire, Michael Dell dropped out of college at age 19 to start PC’s Limited, later named Dell, Inc. 6. She works in broadcasting. 7. Having dropped out of high school at 16, Walt Disney’s career and accomplishments are astounding. 8. The most influential animator, Disney holds the record for the most awards and nominations. 9. Disney’s imagination included cartoons and theme parks. 10. The Ford Motor Company is a world-known car manufacturer. 11. Michael Dell became the most profitable PC manufacturer in the world. 12. Several publishers are competing in the same market. 13. Gates and his wife are philanthropists, starting The Bill & Melinda Gates Foundation with a focus on global health and learning.

Task 22. Range the following factors according to their importance for achieving entrepreneurial success. Explain your choices.

inspiration imagination appreciation formal training a college degree thrill seeking spirit business experience entrepreneurial spirit dedication and desire outrageous business tactics

___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________

most least

Task 23. Read and translate the following passages.

There are many successful entrepreneurs who didn’t need their college education and became millionaires anyway. Here are fifteen of them, both contemporary and from the past, in alphabetical order.

Mary Kay Ash [`meəri keı] (1915-2001). The founder of Mary Kay Inc. started a cosmetics business. While she didn’t have a college education or any training, she successfully created a brand known throughout the world. The company uses saleswomen who sell directly to customers, rather than in shops, and successful saleswomen are given pink Cadillacs [`kædılæks]. To date, nearly half a million women have started Mary Kay businesses, selling cosmetics. Their appreciation for Mary Kay Ash is unwavering.