Entrepreneurship –the entrepreneurial function- can be conceptualised as the discovery of opportunities and the subsequent creation of new economic activity, often via the creation of a new organisation (Reynolds, 2005). Behind the theories are three main principles: an economic or business concept (examining the business processes necessary for the development of an enterprise), psychology (disclosing the importance of entrepreneurial individuals and their traits) and sociology (concerning the importance of various social contexts such as social networks, a desire for a meaningful life, ethnic identification social-political factors).
The main challenges of entrepreneurship start with changing business opportunity into business, and include issues such as a lack of resources, cash flows, financing in general, business growth, employees, time management and marketing. On the level of the entrepreneur, the challenge is often self-doubt and failure. Benefits are usually seen after a long time, mostly in a change of society on a local or world level.
Entrepreneurial thinking and behavior are often not rational as expected from business leaders. They are able to make decisions in highly uncertain environments where the stakes and time pressure are high. Entrepreneurs see what others don’t, they don’t fit into the system and they experiment all the time. They usually take advantage of what they already know and try to put it into different contexts in terms of a new market, new product or service. They also don’t have time, therefore they squeeze all the business ideas into quick actions.