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vaishximi
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What is 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.

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.

What are the 4 Types of Entrepreneurship?


It is classified into the following types:

Small Business Entrepreneurship-

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.

Scalable Startup Entrepreneurship-

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.

Large Company Entrepreneurship-

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

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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

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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.

Advantages of Entrepreneurship:

 Creation of Employment- Entrepreneurship generates employment. It


provides an entry-level job, required for gaining experience and training
for unskilled workers.
 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.

Thanks.

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