Concept of Entrepreneurship

The ability to make, designs, and control a company venture by accepting all its risks for the potential of earnings is entrepreneurship. Probably the most known application of entrepreneurship is the formation of new companies.

What Is Entrepreneurship?

In economics, profit can be obtained through entrepreneurship including land, labor, capital and natural resources. It is in this context that entrepreneurial vision majorly determines how the prosperity of the entire country will be in the face of constant change in an increasingly competitive world economy.

What is an Entrepreneur?

An entrepreneur is a person of expertise who takes up ventures for launching and managing and collecting profit from a new venture. New company launch is the best example that explains entrepreneurship. Entrepreneurs are often termed as innovators or introduction of new ideas, introducing fresh concepts in the market by replacing old products with innovative ones.

It can be classed into small or home company to international corporations. In the language of economics, an entrepreneur can generate profits by combining labor, capital, land, and natural resources.

To put it briefly, any individual willing to take all the risks involved in starting a new business and has the drive to do so that go with it can be termed as an Entrepreneur.

Qualities for Entrepreneurship

There are distinct qualities that make entrepreneurship successful, not all entrepreneurs are successful. Here are some of them, in brief:

Risk-taking ability: There is a high possibility that a new venture will fail. So, one of the most critical elements in becoming an entrepreneur is that of having self-confidence and the ability to assess and take risks.

Elon Musk is one of those entrepreneurs with creative business acumen. Both his concerns, SpaceX and Tesla, have revolutionized the space exploration and electric automobile markets. Here, preparedness to take chances and question the status quo is key.

Innovation: By innovation, one can think of new ideas and start a business, earning from it. An example can be said to be a change when it involves entering into the market or procedure, which fulfills the same purpose in a cheaper, more efficient way, a new product.

Leadership and visionary qualities: A successful entrepreneur needs to have an idea of his new business. However, what is required to make the notion a reality is huge numbers of personnel as well as resources. As leaders teach and guide their staff members to the proper route towards achievement, this scenario becomes essential in terms of the leadership quality.

Open-Minded: In a business, everything can be utilized as an opportunity to promote the interests of the organization. For instance, Paytm utilized the situation and has turned out to be a great beneficiary in recent times after they realized the seriousness of demonetization and thus the massive necessity for online transactions.

Flexible: An excellent entrepreneur is one who is flexible and willing to change course if the need arises. A successful business person must be flexible enough to adapt changes in their products and services when they are needed.

Know Your Product: A business owner should know about the products his firm offers as well as the new trends in that industry. The reason is that it becomes of utmost importance to decide whether the currently existing product or service meets the market demands or needs slight adjustment. Entrepreneurship demands a great deal of responsibility and then adjustment as per the situation.

Read also- How to start your business after BBA Degree.

Reasons why Entrepreneurship is Important?

Creation of Employment: Entrepreneurship leads to employment. It provides unskilled labor with employment opportunities where they can gain experience and train.

Innovation: It stands as the nucleus of innovation that improves the standard living of people through developing new products and enhancing quality, market, technology, and many other things in the market.

Effect on Social Development and Society: Diversified and considerable human resources contribute to societal development. It changes society and enables better sanitation, smaller slums, increased investment in education, and a greater percentage of home ownership. Thus, entrepreneurship helps an organization achieve a higher standard of community life that is steadier.

Raise Living Standard: Enhanced earnings from entrepreneurship raise the standard living of a person. The measure of consumption of goods and services by a family within a stipulated time period is referred to as living.

Encourage research and development: Before introducing new goods and services to the market, they must be researched and tested for viability. Therefore, the entrepreneur also finances research and development activities in universities and research institutes. This encourages economic growth, general construction, and research.

Significance of Entrepreneurship

Generation of Employment: Entrepreneurship generates jobs. It provides illiterate workers with training and a low-level job, which is a stepping stone to gaining experience for them.

Innovation: This innovation hub increases people’s living standards by providing new product ventures, markets, technologies, and product quality among others.

Impact on Community Development and Society: Diverse and large labor force contributes to the development of a society. It changes society and promotes things like the expenditure of more money on education, better hygienic conditions, fewer slums, and a greater percentage of homeowners. Thus, the organization helps in the attainment of a stable and high standard of community life with the support of entrepreneurship.

Generating revenues: From the generation of more revenues, entrepreneurship contributes towards the raising of one’s level of living. The amount of living is what is referred to as the increased consumption by a household of various products and services over a given time period.

Encourage research and development: Before introducing any new goods and services in the market an entrepreneur has to depute significant studies on them. Thus, an entrepreneur also funds universities and research institutes to meet with R&D. It encourages economic development, general construction, and research.

What is the entrepreneur’s mindset?

Entrepreneurial mentality describes a specific way of thinking, belief, and knowledge that empowers you to face challenges, take actions on ideas, and handle risks. Regardless of the strengths you possess naturally, you can develop it. You will require both trial & error workouts and personal growth exercises to work out your entrepreneur muscle.

For example, Bill Gates is a very successful entrepreneur. He is a rich business magnate and philanthropist. Co-founded with Paul Allen in 1975, Microsoft has today become one of the most successful technology companies worldwide. In short, his vision for Microsoft was a company to create software for people to achieve more and better within their organizations. His leadership style is often described as encouraging risk taking, innovation, and teamwork.

What does it take to be an entrepreneur?

No two businesses are alike, even though many successful businesses share some basic traits. There is a unique strength in each personality style that drives the approach and management of their businesses.

Some of the best qualities of an entrepreneur include:

• Self-discipline 
• Vision
• Passion
• Risk acceptance
• Self-sufficiency

Meet some of the few successful entrepreneurs with these qualities.

Conclusion

Success, profitability, and innovation are most common goals for entrepreneurs. These are the people who see gaps in the market place and create concepts to help them close the gaps. It is the entrepreneurial spirit that allows a well-oiled world economy to respond to individual demand. They form companies that not only bring new goods into the market but also provide jobs and boost consumer spending.

Related FAQs