Johnson’s article offers clarity on the usage of key business terms, which has over the years led to “lower levels of competitive output”.Both Johnson and Hoy identified the following key terms as essential in business environment:
On the other hand, in his review, the author of the Handbook of Research on Innovation and Entrepreneurship, Hoy (2012, p. 274) addresses the core aspect of economic policy formulation and regulatory strategies in the market. Although the focus is on the significance of the use of the terms in larger organisations, the analysis accomplishes its objective of describing the term as applicable in the corporate sector as is illustrated in the figure 2 below.
The diagram examines the development in larger organisation with the objective of demystifying the use of the term entrepreneurship that many associates with an initiative of small business ventures (Johnson 2001 p. 136). As established in figure 2:
- An entrepreneur forms a central part of the economic system
- The concept conflicts Hoy’s perspective of defining entrepreneurship as an activity has strong influence on the larger scale
- An entrepreneur and entrepreneurship encompasses a larger aspect of the economic system best described as a cogwheel
- Innovation and entrepreneurship as a strong element of the performance of larger organisations and the economic system as a whole
Throughout the review, Johnson offers greater understanding of the term from the perspective of a larger organization and a wider economic viewpoint.
Usage of key business terms and their meanings
- A business organization, especially one that is large
- An enterprise encompasses small businesses,government bodies,corporations, and non-profit institutions
- In modern usage, the term enterprise refers mostly to a large business organization or corporation
- However, in the computer industry, the term enterprise refers to large organizations that use computers
- In a simple meaning it refers to a business or company
- It also connotes to the entrepreneurial activity, especially when the process is accompanied by resourcefulness and initiatives
- The term is used to describe the action taken by an individual to take some risk by setting up and running a business entity
- It can be defined as an activity that has strong influence on the larger scale.
- The term entrepreneurship is often considered as referring to a small business. Additionally, it is used mostly in business to imply a new venture phenomenon.
- It refers to the course of developing a new business.
- The product, service, or process offered in entrepreneurship must be innovative.
- The process of entrepreneurship starts with determining of an opportunity.
- It is a risk taking process that involves biases in making decision to exploit the identified opportunity.
- Its usage also refers to an agency of change in doing business
- It refers to the willingness and capacity to organize, develop, and manage a business venture so as to make a profit
- In economic terms, entrepreneurship is viewed as a combination of land, labour, capital, natural resources.
- The act or process of creating something for the first time in the market
- It refers to the entire process of translatinga new business idea into either service or good
- The innovation process is driven by the primary gaol of creative value that customers are willing to pay for.
- In modern usage, the term innovation connotes to an idea that is replicable especially to economical cost
- It is associated with new business ideas that are conceived to a specific need of customers
- The term connotes to imagination, deliberate usage of information, and initiative aimed at deriving greater value from resources
- The term refers to the process through which new ideas are generated and converted into useful services and products
- The evolutionary type of innovation is brought about by initiating several continuous incremental advances in the process
- The revolutionary type of innovation is characterized by development of a completely new product, service or process
The entrepreneurial process
- Identification of the entrepreneurial opportunities
- Designing action plans
- Development of a business plan
- Acquisition of financial and human resources
- Taking responsibility for success or failure
Significance of clarity of key terms
While advocating for consensus in policymaking, Johnson (2001, p. 138) argues that for realisation of progress, clarity on the key terms is essential. This is because, the activities defined by the terms forms the central and core aspect of organisation and business achievement and performance. The following are the main reasons why clarity of terms is significant in business.
- It simplifies an understanding of business activity
- It helps an entrepreneur achieve full potential in the business activities
- It helps the entrepreneur conceive and believe the right ideas for their business activities
- Clarity of terms helps set the business on purpose especially for achieving sustainable success
- Clarity of business terms is essential in determining the results that need to be achieved
- Clarity of terms is essential in setting up vision, mission, measure, and purpose
Hoy, F., 2012. Handbook of Research on Innovation and Entrepreneurship edited by David B. Audretsch, Oliver Falck, Stephan Heblich and Adam Lederer. Science and Public Policy, 40(2), pp. 274-275.
Johnson, D. 2001. What is innovation and entrepreneurship? Lessons for larger organizations. Industrial and Commercial Training, 33(4), pp.135-140.