Concept of Entrepreneurship
Concept of Entrepreneurship
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.
The person who creates a new enterprise and embraces every challenge for its
development and operation is known as an entrepreneur. And the undertaking or
organisation, typically a startup company, set up by the entrepreneur is called
enterprise.
Characteristics of Entrepreneurship
Economic Activity: Entrepreneurship is an economic activity, as it involves
designing, launching and running a new business enterprises in order to earn the profit, by
ensuring best possible use of resources.
Creativity and innovation: It involves discovering new ideas and
implementing it in business. The entrepreneur continuously evaluates current modes
of running a business and identifies new methods and techniques for operating the
business more efficiently and effectively.
Profit: The activity of entrepreneurship is undertaken with the sole objective of
making the profit. It is also the reward of the efforts made and risk taken by the
entrepreneur.
Risk Bearing: “Willingness to assume the risk” is the essence of
entrepreneurship without which he/she cannot succeed. It occurs due to the creation
and implementation of new ideas. Such ideas are often uncertain, and so the result
may or may not be positive and instant.
Entrepreneurship Ecosystem
Entrepreneurship operates under an ecosystem called as entrepreneurship ecosystem.
The ecosystem comprises of government programs and schemes which encourage
entrepreneurship, non-governmental organisations that provide advisory services to
entrepreneurs, and other organisations which promote and support entrepreneurship
directly or indirectly.
Entrepreneurship is not confined to starting a new business but it about facing
challenges at each step. It is an important tool for bridging the gap between science and
marketplace, wherein a new enterprise is formed and new products and services are
brought to the market.
8 P’s of Entrepreneurship
Being in a business does not necessarily mean that you are in a entrepreneurship. If
both the things were same, we would not have to coin a new word – entrepreneurship.
Many authority websites on the internet define entrepreneur as someone who takes
financial risks in his business with the objective of generating profits.
However, this is not entirely correct. It is not only the profits which an entrepreneur looks
for. Profits are just a standard of measure of success or achievements of an
entrepreneurship.
Some leading economists in the world define entrepreneur as someone who is
constantly looking for change, responds to it when finds it and exploits it as an
opportunity.
However, there is still much more to an entrepreneur which sets him apart from regular
businessmen or businesswomen. We have compiled a list of 8 P’s which are the basic
characteristics of a successful entrepreneur.
Proactive:
Entrepreneurs do not play defensive. They are always in the offense mode. The very
basic character of an entrepreneur is that he is proactive. He does not need to be
managed or delegated a task. Entrepreneurs take initiatives from themselves. Unlike
most people or employees who do only what they are told or sometimes even less than
that, an entrepreneur will always work for the bigger picture and better results.
Passion:
Passion is what drives the force and energy inside a successful entrepreneur. The belief
and attitude of an entrepreneur ultimately leads to success in the business venture. An
entrepreneur is so much passionate about his idea or work that he never stops doing it
until he is better than others in that field. This tremendously increases their chance of
succeeding.
Perception:
Analysing and perception of a business opportunity matters a lot in the success of a
startup. Highly successful entrepreneurs are there since they could exploit a situation or
a problem which others couldn’t. This gave them an edge over their competition and
some even succeeded in gaining a monopoly in their markets. If you are in an
entrepreneurship, it is extremely important to grab the opportunity when it presents itself
and to do that an entrepreneur needs to be perceptive.
Potential:
An entrepreneur makes use of his complete potential when trying to build his business.
Sometimes they work at more than their 100% capacity. They utilize the time and
resources at their disposal wisely and efficiently. That’s what makes them stand out
from the rest of the crowd. They also fill their mind with positive ideas and knowledge
instead of wasting time and energy on social media and other non-productive tasks.
People:
It is not the entrepreneur who builds the business. It is the people who build a business.
People who take part in decision making and other activities which decide the future of
the company at the end. For an entrepreneur, it is important to have a team of right
people who can guide him in the right direction and prevent him from making bad
choices.
Persistent Learning:
Entrepreneurs acquire knowledge from anyone, anywhere and anytime like sponges.
Knowledge is the only thing which can help you develop new ideas regularly which are
vital to the growth of any startup.
Perseverance:
Nothing about entrepreneurship is easy. The road to success in any business startup is
filled with rocks and is unusually bumpy filled with problems and difficulties. In such
situations, an entrepreneur needs to remain determined and persistent towards his goal.
Only then the success is possible.
Perceiving Change:
Adapting and adjusting to change is a trait of successful entrepreneurs. The world we
live does not remain constant forever. Everything inside it changes on intervals
unknown to mankind and due to reasons also unknown to us. A good entrepreneur
perceives change with positive attitude and changes himself accordingly.