What is an Entrepreneurship?


What is an Entrepreneurship?Entrepreneurship refers to the concept of taking risks to start a business or a company to produce a problem solving product for the consumers. In entrepreneurship a person who take risk to start his company is known as entrepreneur.

Entrepreneurship is the ability to identify an investment opportunity and to organize an enterprise in order to contribute in the real growth of the economy. Entrepreneurship combines many features such as innovation, leadership, risk taking combining factors of production etc. Hence entrepreneurship 
refers to a creative and innovative response to the environment and an ability to recognize, initiate and exploit an economic opportunity.

Feature of Entrepreneurship:

  1. Goal oriented: Entrepreneurship is always goal oriented. It aimed to achieve some pre determined goals.
  2. Entrepreneurship is an process of decision making: Entrepreneurship is an process of decision making as the entrepreneur has to number of decisions to run his organization.
  3. Entrepreneurship is an economic activity: Entrepreneurship is an economic activity as it involves setting up or running an enterprise for earning profit by sale of products and services.
  4. Entrepreneurship involves creation of change: Entrepreneurship involves introducing new products and services or making changes in the existing products and exploit different opportunities available in the environment.

Scope of entrepreneurship: The scope of an entrepreneurship is very wide. It covers a numbers of activities. The important activities covered under the scope of entrepreneurship are explained below:

  1. Creation of business plan: Every new venture should be have a business plan. A business plan is the formal written expression of the entrepreneurial vision. describing strategy and operation of the proposed Venture.
  2. Creation of infrastructure: A new business enterprises needs to set up basic infrastructural facilities for commencing its operations.
  3. Creation of Enterprise: Entrepreneurship involves the setting up of a new business enterprise. An entrepreneur brings together various factors of productions and start an enterprise.
  4. Creation of innovation: Entrepreneurship is an innovative and creative activity.  innovation is the process of doing old thing in a new and improved way.
  5. Leadership and management skills: Entrepreneurship demand tactful handling of various situations. Thus an entrepreneur must have managerial abilities to manage and control the affairs of the business and more important he must have ability to lead.

 Need and importance of entrepreneurship: the following point and highlight the need and importance of entrepreneurship:

  1. Opportunities for self exploration: Entrepreneurship provide the entrepreneurs  an opportunities for self expression and realisation of ones dream by doing something new and different .
  2. Innovation: Entrepreneurship is an innovative and creative activity. Innovation is the process of doing something new or doing old things in a new and improved way.
  3. Mobilisation of resources: Entrepreneurship entails mobilisation of necessary resources for achieving organisational goals. Thus an entrepreneur must know how to get what is needed at the right  and at the right price.
  4. Proper utilisation of resources: Entrepreneurs not only mobilises the necessary resources but also ensures their proper utilisation.

To be continued.....