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.
 
Definition: Entrepreneurship refers to the process of creating a new enterprise and
bearing any of its risks, with the view of making the profit.
It is an act of seeking investment and production opportunity, developing and managing
a business venture, so as to undertake production function, arranging inputs like land,
labour, material and capital, introducing new techniques and products, identifying new
sources for the enterprise.
The capacity and willingness to develop, organize and manage a business venture
along with any of its risks in order to make a profit. The most obvious example of
entrepreneurship is the starting of new businesses.
In economics, entrepreneurship combined with land, labor, natural resources and
capital can produce profit. Entrepreneurial spirit is characterized by innovation and risk-
taking, and is an essential part of a nation's ability to succeed in an ever changing and
increasingly competitive global marketplace.
  
 

 
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.

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 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.
 
 
 
Importance 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.
 
Skills Required in Entrepreneurship
1. Technical Skills: Oral Communication, ability to organise, productive ability,
technical business management, coaching, network building, monitoring environment,
ability to spot new trends, active listening, writing and interpersonal skills.
2. Business Management Skills: Forecasting, planning, budgeting, decision
making, negotiation, goal setting, human relations, marketing, finance, etc.
3. Personal Skills: Ability to manage change, leadership, persistence, self-reliance,
foresightedness, innovativeness, risk taking, self-reflection, discipline, self-confidence,
honesty, patience, intelligence, tactfulness, emotional stability, etc.

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.