What is Entrepreneurship?
Entrepreneurship is the ability to start a new business, giving a market economy to realization. In other words, Entrepreneurship is the process of starting, managing, and ability to grow without any hampered. It is the process of identifying opportunities in the marketplace, managing the resources required to follow these opportunities, and using the resources to utilize the opportunities for better gains.
Entrepreneurship concepts involve versatile aspects to begin a new venture. It is concerned with the activity of entrepreneurs. Whatever entrepreneurs think about the business idea, optimizing resources, and properly utilizing resources. It is an attempt to start a new venture. It provides good results from starting, development, and optimization not only for owners but for all participants and stakeholders also as a society.
Its best quality is taking risks making the best investment under conditions of uncertainty and putting up the best economic growth. Various scholars have described its concepts in different aspects.
Peter Drucker – “Entrepreneurship is gathering and using resources to produce results. It is allocating resources to opportunities rather than to problems.”
Robert Ronstadt – ” Entrepreneurship is the dynamic process of creating incremental wealth. This wealth is created by individuals who assume the major risks in terms of equity, time, and/or career commitment to service. The product of service itself may or may not be new or unique but value must somehow be infused by the entrepreneur by securing and allocating the necessary skills and resources.”
Jack Kaplan – ” Entrepreneurship is the process of planning, organizing, operating, and assuming the risk of a new venture.”
Entrepreneurship is a creative and innovative behavior in the market environment. It derives new techniques, ideas, and goods in the competitive market. It uses economy in cost and produces the best quality product. It pursues market opportunities and manages the demand & supply of the market, causing it to fulfill the desires of customers. Entrepreneurship is the dynamic and multifaced force to start innovation in a new venture. It often possesses a smart ability to adopt opportunities and follow up for better achievement of the needs of customers.
Characteristics of Entrepreneurship
Key characteristics of entrepreneurship involve creativity and uniqueness. It adopts new methods for better performance of the venture. Some characteristics are as follows:
1. Creation of New Venture
Entrepreneurship is the creation of a new venture. It gives birth to new ideas, techniques, commodities, and so on. It observes the customer demands as a current situation and long-term situation. Cause of that, it can start new ventures in a competitive market. It satisfies customer expectations. It fulfills the needs of customers with the help of quality products and provides goods and services at an economic cost.
Entrepreneurship identifies and assesses market opportunities for a new venture. It uses those opportunities for market growth and helps to compete in the market. Such kind of innovations result in unique products and processes. It increases the profit of owners and creates dynamic changes and good growth in the economy.
2. Hard Work
Entrepreneurship requires full commitment to start a venture. It demands all kinds of resources related to a venture and successfully utilizes them. Entrepreneurship needs hard work, commitment, a high degree of devotion, and so on to achieve venture success.
It requires full dedication of their time, budget, resources, ideas, and effort to succeed in the venture. As well as they need to make effective plans, assess the situation, and acquire the resources for better success of the venture. It is a tough task to be successful in a competitive market.
3. Risk Taking
Entrepreneurship is a risk-bearing task. It faces various undetermined situations in a market environment. Entrepreneurship assesses the opportunities, that would be harmful or profitable for the venture. All the uncertainties of the future are analyzed by the entrepreneur.
It risks may be financial risks, career risks, social risks, and so on. Such risk hampers on success of a venture. Every new venture requires money, time, and dedication. The entrepreneur uses their savings, salary, and property to initiate a new venture. Entrepreneurs leave a secure job for the uncertain future.
It demands focus on a venture. Social and family problems or issues hamper it. It involves entrepreneurial stress. If the venture fails entrepreneurs may suffer psychic problems.
4. Expectations of High Achievement
Entrepreneurs expect high achievement in the venture. It desires better market conditions in the competitive market. To meet the success of the venture it uses full of resources that could be supportive of that venture. Entrepreneurs focus on the goal, and to achieve that goal they face various obstacles and issues.
The entrepreneur uses the economy on venture and desires high profit from that. This high achievement supports them to face business obstacles, anxieties, and pressure and run on successful ventures. The desire for high achievement motivates them to take risks and compete properly.
5. Harvests of Rewards
Entrepreneurship gives rewards to the entrepreneur. It provides in harvest of rewards. The rewards may be financial and non-financial.
Financial rewards mainly provide profit with monetary terms. It increases money as a beneficiary. Such rewards help to increase the business market. Non-financial rewards involve personal satisfaction, reputation, and market strengths. It helps to feel like an owner or boss. Self-satisfaction is highly prominent for the success of the venture.
Importance of Entrepreneurship
Entrepreneurship plays a core role in developing the business. There are some aspects to present the significance of entrepreneurship.
1. Capital Formation
Entrepreneurship promotes capital formation by mobilizing the savings of the people. Mobilizing the money generates economic growth. Nowadays capital formation not only involves money it also involves human capital. Human capital is the best decision to mobilize money in a venture.
Entrepreneurs invest their savings and mobilize that for capital formation. Unusable funds could be usable by entrepreneurship. It helps the growth of the venture and economic development.
2. Employment Creation
Entrepreneurship generates entrepreneurs. Entrepreneurs increase the business where various types of employees are required. Employees help to smooth the run of the business. Skilled and unskilled employees work to demand of business.
Every business is a source of employment for people with various abilities and qualities. Where they pay their best performance for the quality product. Hence, the development of entrepreneurship is important to solve the unemployment of the nation.
3. Utilization of Resources
Entrepreneurship helps to utilize available resources properly. It manages resources such as forests, water, minerals, and other available resources in an environment. By utilizing such resources entrepreneurship supports the development of business. It also helps for the economic development of the nation.
4. Revenue Generation
Entrepreneurship develops various industries and business activities. Which helps to increase the economic condition of business sectors as well as of the nation. The government imposes different taxes such as customs duty, royalties, VAT, income tax, and so on. This kind of revenue helps to improve the business sector for more betterment. And also helps to increment of government economy.
5. Earning of Foreign Currency
Various industrial sector products are much better products in a competitive market. Which consumes the market status. Developing entrepreneurship could be supportive of the production of goods and services. Such kinds of goods and services exported to foreign countries would help to earn foreign currency.
Exporting such products helps to balance payment and earn foreign currency. It also helps to develop the commercial sector and the economic condition of the government.
Types of Entrepreneurship
There are different types of entrepreneurship. Not all entrepreneurship is the same. Its perceptions differ from each other.
1. Small Business Entrepreneurship
Small businesses are hairdressers, plumbers, travel agents, mobile galleries, carpenters, electricians etc. Such kinds of business can be started by anyone. Its workers mainly would be family or local people. Mostly their earning will be to survive in his family. It could not take over the business in a profitable manner.
2. Scalable Startup Entrepreneurship
Scalable startup entrepreneurs start a company knowing from day one that their vision could change the economy of the nation as well as the world. Entrepreneurs think that they can run their business without any obstacles. It uses many more technologies, and strategies to handle the customers economically. They hire the best of the best employees and resources for success in business. So, it helps to expand easily.
3. Large Company Entrepreneurship
Large companies increase through innovation, new products, and new services with various aspects. To compete in a competitive market it launches new tastes and new designs. Differ products develop new customers. Providing new products attracts customers and fulfills their desires of them. Large companies create entirely new products and sell them to new customers in new markets.
Such companies invest their capital in research, development, marketing, and expansion of business.
4. Social Entrepreneurship
Social entrepreneurship focuses on fulfilling social needs demands and problems. For that entrepreneurs innovates market products and services. But, on the other hand, scalable startup entrepreneurs’ target is to make fast expansion of business without any problems. They aren’t focused on the development of business and revenue for the founders. Social entrepreneurs may be profit, non-profit, or hybrid.