A person who takes the risk of starting a new firm or business collects capital and labor to deliver goods and services for profit is defined as an Entrepreneur. Entrepreneurship is a broad term, and you can be an entrepreneur in just about any area. Entrepreneurship is hard work, so you want to focus your attention on something you care about.
Entrepreneurship is an important subject for students. It defines to develop and managing of business to gain profit in risks in the corporate world. It helps solve the problems. An entrepreneur should have good communication skills, listening skills, business management skills, financial skills and many more skills.
Who is an Entrepreneur?
They take a risk to establish, administer, and gain success in a start-up with their innovations and ideas. They are the coordinating agent in the economy. He has to make judgments despite the risks he encounters in his Journey. Bringing new ideas, making life easier is the job of an entrepreneur. Some people may confuse entrepreneurs with the businessman but these two are 2 different terms.
- An entrepreneur makes his path with his new innovative ideas.
- A businessman on the other and follows a set path made by someone else.
- For example, a person selling clothes on a shop is a businessman but a person starting to develop an app to provide free food to the homeless is an entrepreneur.
Concept of entrepreneurship
Entrepreneurship is defined as a process of designing, launching, and running a new business considering all the risks involved to make a profit.
It is also an act of being an entrepreneur. It may be connected with:
- Land
- Labour
- Natural resources
- Capital
Types of entrepreneurship
Let us discuss each type briefly.
SMALL BUSINESS ENTREPRENEURSHIP
It is an organization that has fewer resources and annual revenue. Entrepreneurs are concerned with developing and growing their set up. These businesses are focused on feeding their family and making a small amount of profit. Some examples are listed below:
Advantages and disadvantages of small business ownership
| ADANTAGES | DISADVANTAGES |
| Independence | Time commitment is more. |
| Financial gain | Risky job |
| Prestige | No security |
| Equity | Uncertainty |
| Opportunity |
LARGE COMPANY ENTREPRENEURSHIP
Characteristics:
- Well defined life cycle
- More products are launched in the market which revolve around the main product
- Requirement of more financial assistance
- Customization of products according to the needs of the customer is done
| ADVANTAGES | DISADVANTAGES |
| Growth | Longer approval cycles |
| Innovation | Fear of failure |
| Maximization in productivity | Job insecurity |
| Better team of intellectual people |
SCALABLE STARTUP ENTREPRENEURSHIP
This type of entrepreneurship is started with a unique idea which is termed as BUSINESS MODEL. This involves a great sort of work, research, education, and experience. Here the finance is allocated by raising funds once the business takes up the pace.
An example of such entrepreneurship is using Facebook, Instagram for online shopping of clothes.
SOCIAL ENTREPRENEURSHIP
Focus is on the betterment of the society and resolution of social needs and problems without any profit.
The entrepreneurs have to work selflessly without any financial assistance in the starting stages.
| ADVANTAGES | DISADVANTAGES |
| Diversity | Lack of success rate |
| Good to society | Lack of public exposure and recognition |
| Provide job opportunity to others | Lack of support structure and funding |
CHARATERISTICS OF ENTREPRENEURSHIP
Like any other job, few characters that are mandatory to be present in an entrepreneur. While there can be differences in opinions but few factors are indispensable.
- Courageous
As the amount of risk is very considerate, so the entrepreneur should be courageous. Positive minded people can deal better with the outcomes.
- Innovation
This means the generation of a new idea which is essential is starting a business. You may launch a new product or may sell something more efficiently and economically.
- Visionary and leadership quality
A vision should always be present in the mind of an entrepreneur. Working aimlessly won’t take the business anywhere. Also having leadership quality is important otherwise the employees may lose interest in the work. An entrepreneur must motivate employers to achieve set goals.
- Well informed
The entrepreneur should not just be well-read but should be well informed too. He/she should know the trend, policies being followed across the world. His will help them to make the right decisions at right time.
- Open-minded and flexible
Instead of doing the same task again and again entrepreneurs should try to take the opinions of the workers and open mind think of their ideas too. To be successful businessperson must be able to embrace the change in service and product.
IMPORTANCE OF ENTREPRENEURSHIP
Entrepreneurship is important as it has the ability to change and improve the standards of living. For example, online transactions have helped us save time standing in a long line to pay bills.
New products come every day in the market to improve our quality of life.
The following are a few advantages of entrepreneurship:
- Job opportunities
With the launch of a new company, various jobs are created. Jobs may be of a trainee or a manager.
- Development of society
Entrepreneurship helps to boost national income and tax revenue. But there should be a harmonious relationship between policymakers and business owners.
- Supports research and development
For every new start-up, a series of research and tests are carried out before it is launched in the market. This also helps in the construction of the economy.
Lastly, let us discuss some start-ups examples that were started on a small scale but now are part of a growing industry. The biggest entrepreneur of all times DHIRUBHAI AMBANI started by selling traditional snacks to pilgrims and now owns a business in various sectors. Today, his company Reliance is the biggest private company in India.
