What is Entrepreneurship?
Before exploring “Entrepreneurship” it is important to understand the meaning of Entrepreneur.
The word ‘Entrepreneur’ is derived from the French word ‘entreprendre’ which means to ‘undertake’. An entrepreneur is someone who implement initiative by organizing a venture to take benefit of an opportunity and decides What, How and How much of a good or service to be produced. We can apply the word loosely to describe it as someone who runs the business-for example the person who owns a multinational company or one who owns a tea stall.
Entrepreneurship
The dynamic process of generating incremental wealth is known as entrepreneurship. People who take on the biggest risks in terms of equity, time, and/or professional dedication in order to add value to a good or service are the ones who produce this wealth. an entrepreneur must find and allocate the required resources and skills in order to inject value into the product or service, regardless of whether it is new or distinctive.
The expansion of our economy depends heavily on entrepreneurship. Critical issues like unemployment, the concentration of economic power in the hands of a small number of people, uneven regional growth, the growing waste of young people’s potential in harmful activities, etc., can all be resolved by entrepreneurship. Entrepreneurs launch their businesses with the goal of increasing profits through the production or selling of goods and services that meet consumer demands. The capacity to recognize an investment opportunity and launch a business in order to support actual economic progress is known as entrepreneurship.
An entrepreneur is a person, and entrepreneurship is the process of turning ideas and inventions into reality. The term “entrepreneurship” refers to the collective of entrepreneurial functions. There can be no entrepreneurship without entrepreneurs. Being an entrepreneur is what an entrepreneur does.
Definition
According to Peter F.Drucker’s Definition-“Entrepreneurship is a practice, not a science or an art.” A knowledge base is present. Entrepreneurship knowledge is a means to an end. In fact, the goals, or practice, define a great deal of what constitutes knowledge in practice. An entrepreneur is a capable and entrepreneurial person who possesses a unique ability to create, copy, and make decisions. They are also interested in cutting edge technologies and willing to take on the associated risk. The goal of entrepreneurship is to create something new, manage risk, organize and coordinate tasks, and deal with uncertain economic conditions.
Characteristics of Entrepreneurship
1. Innovation
Entrepreneurs approach problems in novel and improved ways. This encourages innovation in products and processes as well as the pursuit of untapped markets. Being an entrepreneur is an artistic endeavor. Innovation is the process of addressing problems; entrepreneurship is the act of applying innovation to problems.
2. Decision Making
Innovation comes from finding new and better ways to do things. Apart from being innovative, entrepreneurs also need to make decisions in the face of uncertainty. This process of making decisions is a crucial aspect of entrepreneurship. Being an entrepreneur is a result of great accomplishment. Deliberate attempts can significantly boost achievement motive.
3. Building the organization
Building an organization is a skill implied by entrepreneurship. It takes many skills to construct an organization, but one can do so successfully by giving people responsibilities. Here, the business owners ought to be capable leaders. In entrepreneurship, aptitude and originality are valued more highly.
4. Managerial skills
The most crucial aspects of entrepreneurship are leadership and management abilities. Being an industrial entrepreneur requires more than just a desire to make money and accumulate wealth. They need to be capable of managing and leading.
1) He needs to be able to draft well-reasoned policies.
2) He should have the flexibility to accept change when it’s required and modify programs and policies as circumstances demand.
3) He has to make sure that the authority, rights, and obligations of various employees are properly balanced.
4) To ensure efficiency and comprehension, he must be able to allocate each person to a position based on their talents, knowledge, aptitude, and experience.
5) In order to improve each person’s skills, he must provide appropriate training, pay, and uphold good interpersonal relationships and outdoor conditions.
6) He needs to simplify every organization’s operations. It implies that the equipment used in production, the processes employed in daily tasks, and the methods for using personnel and resources should all be quite straightforward.
7) He needs to be able to apply the specialization principle, which boosts output. Specialization leads to an improvement in product quality.
8) He needs to be able to embrace standardization, as this aids in product marketing. Standardization helps to ensure production quantity and quota.
9) He needs to be able to create a work schedule that guarantees an organization runs smoothly.
10) He needs to be able to keep an eye on and manage the actions of the employees within the company.
11) He needs to be able to foster mutual respect and confidence, which may be achieved through cooperation. He needs to be able to get all parts of the company to work together.
5. Resource Mobilization
It is the role of an entrepreneur to close the gaps. An entrepreneur must gather all the necessary inputs through resource mobilization in order to realize the finished product. The process of input completion and gap filling is what drives entrepreneurship.
6. Risk taking
Entrepreneurship is a process through which an entrepreneur creates new businesses, jobs, and creative, expanding organizations that are linked to success, risk, and new chances. As a result, society is exposed to a new good or service. Generally speaking, entrepreneurs take the following four categories of risks:
1)Financial Risks
The majority of business owners start out with their own funds and valuables, and if they fail, they dread losing them. They accept the chance of failing.
2)Job risks
Entrepreneurs take into account the present dangers associated with quitting one’s employment to launch a business in addition to adhering to workplace policies. Many business owners have a history of holding solid jobs but leaving them because they felt unfit for the position.
3)Family and social risks
Starting an independent business requires a lot of energy and takes time. Due to these endeavors, he or she can experience some social and familial damages, such as deficits and issues arising from his or her absence from the home and its impact on the family.
4)Risks to mental health
The dangers associated with mental health are possibly the largest ones that entrepreneurs face. The risk associated with money, a house, a spouse, a child, and friends may all be managed, but starting and maintaining an entrepreneurial endeavor can have a detrimental impact on mental tensions, stress, anxiety, and other mental elements.
As a result, entrepreneurship requires risk, and success is the result of the entrepreneur’s diligence. He or she is therefore constantly faced with the possibility of failing.