Entrepreneurial Concept Theory Application

Assignment Brief

Elaborate on an entrepreneurial concept and apply relevant theories to a chosen example (Cognitive (thinking) skills: application of theory to examples, real life examples, case studies). 500 words

Sample Answer

Entrepreneurial Concept: Airbnb

Entrepreneurship is often understood as the pursuit of opportunities beyond the resources currently controlled. One entrepreneurial concept that has significantly disrupted global markets is Airbnb, founded in 2008 by Brian Chesky, Joe Gebbia, and Nathan Blecharczyk. The company began with a simple idea: renting out air mattresses in a small San Francisco apartment to cover rent. Over time, this concept evolved into a digital platform that now connects millions of hosts and travellers worldwide. Applying relevant entrepreneurial theories helps us to better understand why Airbnb became so successful and how entrepreneurs can shape industries.

Schumpeter’s Innovation Theory

Joseph Schumpeter (1934) argued that entrepreneurship is fundamentally about “creative destruction,” where entrepreneurs innovate by introducing new products, services, or processes that replace old ones. Airbnb illustrates this perfectly. Traditionally, the hospitality industry was dominated by hotels, offering standardised accommodation at fixed price ranges. Airbnb challenged this model by creating a peer-to-peer accommodation marketplace.

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