Scribd
Upload
38 views4 pages

Intro To Entrepreneurship

Uploaded by

230745
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
38 views4 pages

Intro To Entrepreneurship

Uploaded by

230745
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

ENTREPRENEURSHIP

Definition of Entrepreneurship

Entrepreneurship is the process of designing, launching and running a business


venture, often with innovation and risk-taking approaches to achieve growth,
profit and sustainability.

For example, when Uber started, the founders saw an opportunity to create a
service that could connect drivers with people needing rides through a
smartphone app. They took on the risk and work of developing the app, arranging
the service, and managing drivers, eventually turning Uber into a globally
recognized business.

Who is an Entrepreneur?

An entrepreneur is a person who initiates, organizes, and runs a business, often


taking on financial risks in the hope of making a profit. Entrepreneurs are
visionaries who can see possibilities where others may not, and they’re willing to
invest their time, effort, and resources to turn an idea into reality.

Example: Elon Musk is a well-known entrepreneur. He founded companies like


Tesla and SpaceX with the vision to revolutionize electric cars and space
exploration. He took on high risks and faced many challenges, but his ability to
see long-term possibilities and persevere turned his companies into industry
leaders.

Difference Between a Business and Entrepreneurship

While both involve starting and running an organization, there’s a key difference:

1. Business: Any organization that provides goods or services to customers in


exchange for money. Businesses can range from a local grocery store to a
large corporation. A traditional business owner might follow a proven
business model with low risk and stability in mind.
2. Entrepreneurship: Entrepreneurship is a specific type of business activity
that focuses on innovation and risk-taking. Entrepreneurs often create
something new or significantly improve an existing product or service.
Entrepreneurship is about solving a unique problem or fulfilling an unmet
need in a way that provides value.

Example:

 A business owner might open a coffee shop, following a proven model with
minimal changes.
 An entrepreneur might create an innovative coffee subscription service
that delivers unique blends to customers’ doors monthly, changing how
people enjoy coffee at home.

Types of Entrepreneurship: Corporate and Individual

1. Individual Entrepreneurship: This is when a single person or a small group


of people starts their own business from scratch. They take on most of the
risks and rewards. Individual entrepreneurs may work alone or hire a small
team as they grow.
o Example: Sara Blakely, the founder of Spanx, started the company
on her own with just $5,000. She identified a need for comfortable
shapewear for women and took on the risk and effort of launching
Spanx, eventually building it into a billion-dollar brand.
2. Corporate Entrepreneurship (or Intrapreneurship): This happens within
established companies. In this case, employees or teams work like
entrepreneurs but within the safety of a larger company. They develop new
products, services, or ways of doing things to help the company stay
innovative and competitive.
o Example: Google encourages its employees to spend 20% of their
work time on personal projects they’re passionate about. This policy
has led to successful innovations like Gmail and Google Maps, which
started as employee projects within Google.
Benefits of Becoming an Entrepreneur

There are several rewards for those who choose the entrepreneurial path:

1. Independence and Freedom: Entrepreneurs have control over their own


work and make their own decisions. They have the freedom to set their
schedules, choose the projects they work on, and define their own business
goals. This autonomy is highly appealing for those who want to break away
from a traditional 9-to-5 job.
o Example: Mark Zuckerberg created Facebook while in college. As an
entrepreneur, he had the independence to shape his vision for the
platform without being limited by others' ideas or constraints.
2. Potential for High Earnings: While there’s no guarantee of success,
entrepreneurs have the potential to earn significant profits if their business
is successful. Unlike a salaried job, entrepreneurship can lead to income
that grows as the business expands.
o Example: When Jeff Bezos started Amazon, he took on a lot of risk
but eventually turned it into one of the world’s largest companies. As
a result, he became one of the wealthiest individuals globally,
demonstrating the high-income potential of successful
entrepreneurship.
3. Creative Expression and Innovation: Entrepreneurship allows people to
bring their ideas to life. Entrepreneurs are often creative individuals who
want to solve problems in new ways, develop unique products, or change
the way things are done. They can make a real impact on society and see
their ideas come to fruition.
o Example: Evan Spiegel, the co-founder of Snapchat, created a new
social media platform that allowed users to share photos and videos
that disappear after a few seconds, which was an innovative
approach in the social media world.
4. Personal and Professional Growth: Entrepreneurship teaches valuable
skills like problem-solving, decision-making, and leadership. Entrepreneurs
learn a lot through the experience of starting and running a business, often
growing personally as they handle challenges, make difficult decisions, and
develop resilience.
o Example: Howard Schultz, the former CEO of Starbucks, grew
significantly in his leadership skills and business knowledge as he
expanded Starbucks into a global coffee brand, facing and
overcoming numerous challenges.
5. Creating Jobs and Adding Value to Society: Entrepreneurs play a vital role
in creating jobs for others, contributing to the economy, and solving real-
world problems. They create opportunities not just for themselves but for
others as well, helping communities and industries grow.
o Example: Oprah Winfrey built a media empire that provides
employment for thousands of people. Her businesses not only offer
products and services to the public but also contribute to the
economy and create jobs for others.

You might also like