Defenition of Entrepreneurship

Identify 3 UK-based small to medium sized companies (max. 250 employees) which are for profit organizations (must be profitable) that fit the following definition:

← Entrepreneurs are those persons (business owners) who seek to make money by identifying and solving relevant problems. These can be:

◦ problems or limitations related to the entrepreneur’s organisation

◦ customer problems

◦ societal problems

← The problem solving can be in form of:

◦ New products/services (tire pressure monitoring system)

◦ Process innovation (e.g. Southwest airlines)

◦ New markets creation (e.g. kettle in USA/Germany 20 years ago)

Examples for problem solving:

- Company has limited resources (financial, human resource, production capacity, raw material supply, etc. but has found a way to bypass that limitation (e.g. by utilizing Information and communication technologies, new ways of production, etc.)

- Company has found a new way to share risks with suppliers, customers, other partners

- Company offers products which are a solution to a societal problem (e.g. special water filter for the 3rd world), or a customer problem (fast changing consumer preferences ( example for solution would be that the supplier firm only charges for sold items), or any other problems.

- Extreme flexibility (firm can accommodate any out-of-the ordinary orders, even small quantities)

- Company offers the same products/services, but better and more efficiently than anybody else.

- Company offers a wide selection of products facilitated by an online platform

- Feel free to identify other areas of problem solving (provide justification why it is a problem and how it is solved)

Another definition that might help:

← „Entrepreneurship is the activity that drives the economy in new directions, through recombination of resources, activities and routines by firms.“...