Arabian Journal of Business and Management Review (OMAN Chapter) Vol. 3, No.4; Nov.

2013

ENTREPRENEURSHIP AND ITS IMPORTANCE IN ORGANIZATIONS

Ebrahim Chirani
Department of Business Management, Rasht Branch, Islamic Azad University, Guilan, Iran
Farzin Farahbod
Department of Public Management, Islamic Azad University, Rasht Branch, Rasht, Iran
Forough Pourvahedi
M.A. of Business Management, Islamic Azad University, Rasht Branch, Rasht, Iran
(Corresponding Author)

Abstract
Entrepreneurship be seen in a wide range of tasks. These tasks can be included from pure
innovation to ordinary activities. Entrepreneurship can be found not only independently
and individually, rather in all organizations be taken courageous decision and effect on
resources composition and allocation. Entrepreneur within the organization is as basis of
management. Entrepreneurship is a behavior not a specific attribute in entrepreneur
personality. Entrepreneurship is into two forms entrepreneurship free and independent
within the organization. Requisite creation entrepreneurship in every organization is
consists the rapid rise of new competitors, create a feeling of distrust than traditional
methods in companies, exiting the best work force from companies and their action to
independent entrepreneurship. In this article it deals to entrepreneurial state and its
concept, entrepreneurship environment and its benefits.

Keywords : Organizational Entrepreneurs, Entrepreneurship, Entrepreneurs, Entrepreneurship

Environment

Introduction
The most important characteristics of today's world is extensive changes, increased complexity
and competition. Modern organizations do activity in complex environment and in the meantime
dynamic (Akhavan 2004). Massive and ongoing transformations is characteristics of this
environment and business environment that does highlights necessity of more attention to
harmony with the environment. Something until a few decades ago was considered included
establishing and maintaining enabled large enterprises and argues such as whatever these
companies be larger, dynamic will be economy and more powerful (Armstrong 2006). Although
over many decades flourished this thinking and began to appear gigantic companies. But recent
developments and especially population pressures, every moment innovations, complicate
management and decision making processes, require immediate decisions, activities of small and
medium businesses has shown the importance of small firms. Whereas economic units of private
sector are as formation and growth, the most important factor survival and their powerful
presence in internal and international economic are development as much as them and having
entrepreneurial approach to subject and having coherent plan and organized in this regard. (Partov
Nia 2013)
Previous Research
1. Imani Pour in 2008 is performance a research as "The relationship between trends to
company Entrepreneurship and performance in the Iranian insurance companies selling

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 Arabian Journal of Business and Management Review (OMAN Chapter) Vol. 3, No.4; Nov. 2013

insurance agencies". Results indicated that trends to company Entrepreneurship has positive and
significant correlation with Performance.
2. Stenholm and Et al in 2013 are performance a research as "The effects of organizational
arrangements of country on the size and type of Entrepreneurship activities. The results show that
created new opportunities by Knowledge and requirements to create entrepreneurship is very
effective.

The Concept of Entrepreneurship

Peter Drucker is believed that entrepreneurship is a behavior, not a specific attribute in
entrepreneur personality. He says that entrepreneurship is application of management techniques.
He believes that entrepreneur is someone who with own capital starts new and small profitable
activities, changes values and will evolve its nature and also in the not too distant future make
foundation qualified business. (Ghadiri 2006)

Characteristics of Entrepreneurship
Entrepreneurship from Schumpeter's perspective has three basic characteristics as follows :
1. Entrepreneurship is understood, but can't with the normal laws applying and analysis of
contained and superficial facts does predicted it successfully.
2. Entrepreneurship forms events and long-term results and for created appropriate
opportunities changes current social and economic conditions.
3. Multiplicity and repeated of occurrence entrepreneurial events has depends directly to
relative quality of the troops, strategic decisions, actions and behavioral patterns.
(Momeni 2008)

Characteristics of entrepreneurs
Some of the biggest and most prominent of characteristics of entrepreneurs are as follows :
1. Self-reliance and self-confident (kind of innovative)
2. Very perseverance and endurance in route of attaining the objective
3. Feel of the internal need to success and permanent progress
4. Full advantage from resources
5. Discover of opportunities and ability of productivity from obvious and hidden
opportunities
6. Risk taking, acceptance of risk and tolerance of failure
7. Having aspirational goals and clear and of course beyond the customary goals
(Taheri 2010)

Individual Entrepreneurship
Free and Independent Entrepreneurship : It is when an individual creates the independent
business. This type of entrepreneurship is a process that be lead to satisfaction and new demand.
(Moghimi 2004)

Within Organizational Entrepreneurship : A process that entrepreneur during the with much
trouble and often without the support and consent of organization accomplish an entrepreneurial
activity in organization that is usually, traditional and bureaucratic. (Golestan Hashemi 2003)
Necessity of Entrepreneurship
1. The rapid rise of new competitors
2. Create a sense of distrust than traditional methods in companies
3. Exit best laborers from companies and their action to independent entrepreneurship
(Ahmad Pour Dariani 2006)

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Benefits of Entrepreneurship
1. Entrepreneurship is factors of encourage in investment.
2. Entrepreneurship is factors of stimulate and encourage in sense of competition.
3. Entrepreneurship is factors of change and innovation.
4. Entrepreneurship be leads to Job creation.
5. Entrepreneurship improves quality of life.
6. Entrepreneurship is causes proper distribution of income.
(Pour Bagheri 2009)

Organizational Entrepreneurs
It is when entrepreneurial activity be performed by an individual or groups within an
organization. The result of this type of entrepreneurship usually is create a new organizational
unit within the organization, design and deliver new services, and the creation modern values for
organization. (Peikarjou 2008)
Characteristics of Entrepreneurial Organizations
1. Due to growth and excellence and creation of value
2. Having innovative policies in market
3. Focus on the customer and their unspoken needs
4. Risk assessment and posed risks in commercial activity
5. Prepared to deal with the failure and crisis
6. Having a human resources along with perspective, strategy and idealistic
(Moghadasi 2009)

Appropriate Environment For Organizational Entrepreneurs

First, in creating entrepreneurship space of within the organizational should be determine factors
and also be applied specific guidelines.
Second, Experience or same trial and error be encouraged.
Third, organization must ensure in the way of production and development of new products there
isn't any primary obstacle for creating opportunities
Fourth, company resources should be available and easily accessible.
(Mousa Khani Et al. 2010)

Entrepreneurship Environment
Environment includes all factors outside organization and company that will affect operations of a
company or it is affected from organizational and company performance. These factors include
customers, competitors, stockholders, suppliers, industry and etc. (Stevenson 2001)

Characteristics of Appropriate Environment Organizational Entrepreneurs

1. Organization should be keep pace with advanced technologies and updates
2. New ideas are encouraged
3. Trial and error is encouraged
4. Failures must be accepted
5. The absence of barriers to the creation and development of new products
6. Multifunctional teamwork method
7. Long-term time horizon
8. Voluntary program
9. Appropriate reward system
10. Existence supporter and sponsor

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11. Top management support

(Reza Zadeh 2008)

Conclusions
Entrepreneurship is application of management techniques. An entrepreneur is someone who
small and new profitable activities begins with own capital, create changes in values, and also will
transform its nature. Entrepreneurship is understood, entrepreneurship formed long-term results.
Repeat entrepreneurial events depends directly to troops relative quality, strategic decisions,
actions and behavior patterns. The main characteristics of entrepreneurs are self-reliance and self-
confident (kind of innovative), very perseverance and endurance in route of attaining the
objective, feel of the internal need to success and permanent progress, full advantage from
resources, discover of opportunities and ability of productivity from obvious and hidden
opportunities, risk taking, acceptance of risk and tolerance of failure, having aspirational goals
and clear and of course beyond the customary goals. Entrepreneurship has great importance.
Because it has benefits such as factors of investment encourage, factors of Stimulate and
encourage a sense of competition, factors of change and innovation, factors of job creation,
improved quality of life, and better distribution of income. Given the subjects said,
entrepreneurship in each organizational can be the determining factor in organizational success
and access to the organization's goals.

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