1.1. What is entrepreneurship?
The word „entrepreneur” comes from French verb in a 13th-century, entreprendre, what means “to do something”. By the 16th century, the noun form, entrepreneur, was being used to relate to someone who assume a business venture. The first academic use of the word was in 1730 by Richard Cantillon. In the early 1800s, economists JEAN-BAPTISTE SAY and JOHN STUART MILL farther make more popular the academic use of the word “entrepreneur.” Mill used the term “entrepreneur” in his popular 1848 book, Principles of Political Economy, to refer to a person who to take both the management and the risk of a business.
An entrepreneur is a person who manages, organizes, and to take the risks of an enterprise or business. It is a person who discovers before unheeded profit opportunities. Entrepreneurship is the process of discovering new ways of combining resources. He put together resources, including innovations, business and finance acumen in an effort to transform innovations into economic goods. Entrepreneurship is often a difficult enterprise, and a big part of new businesses fail. Entrepreneurial activities are capitally different depending on the type of organization that is being beginning.
1.2. Characteristics
Entrepreneur is a person with very powerful character, because he needs to be patient, especially at the beginning, because to start business from zero is very difficult. It is a person, which is very confident in himself, because not all people will quit a job, where you get money, but you every day do almost the same- office job.
Entrepreneurs must be creative, because in business always are problems, which must be solved. They must be motivated and ambitious, because they need to believe in their goal, and they must to want to reach it. Entrepreneur must be a decision maker, positive thinker and a person, why can be able to learn from mistakes.
1.3. Situation in our countries
A common entrepreneur is about 40 year-old ethnical Latvian male, who are working in retail trade or the wholesale sector. Younger people, from 18 till 24, are not standing for entrepreneurship in Latvia. There are only 5% of young Latvians busy in entrepreneurial business, compared to the GEM in other countries, where average number are 11,5%. About 84% of Latvian entrepreneurs work in the service sector, primarily in trade, transport, construction and communications. The 12% of the new business were started in manufacturing and only 4% in agriculture. Riga, the capital of Latvia, is the centre of economic activity, because 67% of all enterprises are approver there.
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