Elements of Entrepreneurship

Nowadays, many colleges/universities in Indonesia offer entrepreneurship field as one of the majors. They promote that after the student graduates from the program, they can be a successful entrepreneur. However, Joseph Schumpeter, the writer of Capitalism, Socialism and Democracy book, said that an entrepreneur is a person who is willing and able to convert a new idea or invention into a successful innovation. In addition, an entrepreneur is a person who has a spirit to fight and has ability to be a leader. Many entrepreneurs don’t have high education or don’t have a certificate of graduation. However, based on some studies, they can succeed on their business because of some elements of entrepreneurship. Entrepreneurship is the matter of creativity, leadership and innovation.

Firstly, entrepreneurship is the matter of creativity. In line with that term, entrepreneur is a person who always comes with new ideas to create a product or service that provides value to others. It can be seen from the experience of Teh Botol Sosro, one of the prominence tea bottling company in Indonesia. People thought that tea can’t be drunk if it is not hot. Sosrodjojo, the founder of Teh Botol Sosro, had new idea to produce tea in the bottle and be served in cool condition. However, the new idea must be supported by the desire to develop it. Entrepreneurs must never give up to struggle their idea. For example is the history of Kentucky Fried Chicken. Colonel Harland Sanders, the founder of Kentucky Fried Chicken, got 1009 failures when he tried to offer his new fried chicken recipe. Right now, Kentucky Fried Chicken becomes popular in Indonesia as well as in the world.

Secondly, entrepreneurship is the matter of leadership. The role of leader is very important in the business process. The unpredictable business situation requires an optimistic leader. One of the optimistic leaders and successful entrepreneurs is Basrizal Koto. He comes from West Sumatra. He doesn’t have elementary school certificate and comes from a poor family. However, he believes that he must fight to be successful. Now, he leads 15 companies. Basrizal Koto teaches us to be optimistic. Nonetheless, the optimistic leader should be brave to take a risk as well. Purdi E. Chandra, the founder of Primagama, has been showing the proof based on his experience. He believes that the successful business is not determined by an education certificate. He took a big risk when he decided to drop out from his college and start a new business. Presently, Primagama has more than 500 branches in Indonesia. Primagama also becomes the best tutoring company in Indonesia.

Thirdly, entrepreneurship is the matter of innovation. Schumpeter argued that the innovation and technological change of a nation comes from the entrepreneurs. Therefore, the entrepreneurs must always innovate the product and service to satisfy the consumers. Bill Gates, one of the successful entrepreneurs in the world, teaches about the importance of innovation. After he dropped out from Harvard University, he built Microsoft Corporation. He and his team always innovate the Microsoft features to satisfy the users. Innovation is also to make the Microsoft look different with the competitors, especially after the booming of the open source software like Linux.

In conclusion, entrepreneurship is determined by creativity, leadership and innovation. Some examples from successful entrepreneurs provide information that three elements of entrepreneurship are very important to start, manage, and operate a business. Therefore, we can predict that without creativity, leadership and innovation, business will be declined and perished.