Entrep 5
Entrep 5
Entrep 5
Table of Content
Meaning
Types of Entrepreneurship
Characteristics
Importance
Concept of Entrepreneurship
Entrepreneurship is the ability and readiness to develop, organize and run a business enterprise, along
with any of its uncertainties in order to make a profit. The most prominent example of entrepreneurship
is the starting of new businesses.
What Is Entrepreneurship
In economics, entrepreneurship connected with land, labour, natural resources and capital can generate
a profit. The entrepreneurial vision is defined by discovery and risk-taking and is an indispensable part of
a nation’s capacity to succeed in an ever-changing and more competitive global marketplace.
Meaning of Entrepreneur
The entrepreneur is defined as someone who has the ability and desire to establish, administer and
succeed in a startup venture along with risk entitled to it, to make profits. The best example of
entrepreneurship is the starting of a new business venture. The entrepreneurs are often known as a
source of new ideas or innovators, and bring new ideas in the market by replacing old with a new
invention.
It can be classified into small or home business to multinational companies. In economics, the profits
that an entrepreneur makes is with a combination of land, natural resources, labour and capital.
In a nutshell, anyone who has the will and determination to start a new company and deals with all the
risks that go with it can become an Entrepreneur.
Also Refer: Top 8 Difference Between Businessman and Entrepreneur
These businesses are a hairdresser, grocery store, travel agent, consultant, carpenter, plumber,
electrician, etc. These people run or own their own business and hire family members or local employee.
For them, the profit would be able to feed their family and not making 100 million business or taking
over an industry. They fund their business by taking small business loans or loans from friends and
family.
This start-up entrepreneur starts a business knowing that their vision can change the world. They attract
investors who think and encourage people who think out of the box. The research focuses on a scalable
business and experimental models, so, they hire the best and the brightest employees. They require
more venture capital to fuel and back their project or business.
These huge companies have defined life-cycle. Most of these companies grow and sustain by offering
new and innovative products that revolve around their main products. The change in technology,
customer preferences, new competition, etc., build pressure for large companies to create an innovative
product and sell it to the new set of customers in the new market. To cope with the rapid technological
changes, the existing organisations either buy innovation enterprises or attempt to construct the
product internally.
Social Entrepreneurship-
This type of entrepreneurship focuses on producing product and services that resolve social needs and
problems. Their only motto and goal is to work for society and not make any profits.
Characteristics of Entrepreneurship:
Not all entrepreneurs are successful; there are definite characteristics that make entrepreneurship
successful. A few of them are mentioned below:
Ability to take a risk- Starting any new venture involves a considerable amount of failure risk. Therefore,
an entrepreneur needs to be courageous and able to evaluate and take risks, which is an essential part
of being an entrepreneur.
Innovation- It should be highly innovative to generate new ideas, start a company and earn profits out of
it. Change can be the launching of a new product that is new to the market or a process that does the
same thing but in a more efficient and economical way.
Visionary and Leadership quality- To be successful, the entrepreneur should have a clear vision of his
new venture. However, to turn the idea into reality, a lot of resources and employees are required.
Here, leadership quality is paramount because leaders impart and guide their employees towards the
right path of success.
Open-Minded- In a business, every circumstance can be an opportunity and used for the benefit of a
company. For example, Paytm recognised the gravity of demonetization and acknowledged the need for
online transactions would be more, so it utilised the situation and expanded massively during this time.
Flexible- An entrepreneur should be flexible and open to change according to the situation. To be on the
top, a businessperson should be equipped to embrace change in a product and service, as and when
needed.
Know your Product-A company owner should know the product offerings and also be aware of the latest
trend in the market. It is essential to know if the available product or service meets the demands of the
current market, or whether it is time to tweak it a little. Being able to be accountable and then alter as
needed is a vital part of entrepreneurship.
Related Topics:
What is 4 p of Marketing
Importance of Entrepreneurship:
Innovation- It is the hub of innovation that provides new product ventures, market, technology and
quality of goods, etc., and increase the standard of living of people.
Impact on Society and Community Development- A society becomes greater if the employment base is
large and diversified. It brings about changes in society and promotes facilities like higher expenditure
on education, better sanitation, fewer slums, a higher level of homeownership. Therefore,
entrepreneurship assists the organisation towards a more stable and high quality of community life.
Increase Standard of Living- Entrepreneurship helps to improve the standard of living of a person by
increasing the income. The standard of living means, increase in the consumption of various goods and
services by a household for a particular period.
Supports research and development- New products and services need to be researched and tested
before launching in the market. Therefore, an entrepreneur also dispenses finance for research and
development with research institutions and universities. This promotes research, general construction,
and development in the economy.
Explore Links: