6th Mar, 2020

Everything about entrepreneurship that you need to know

Entrepreneurship, along with any of its complexities, is the willingness and readiness to create, manage and operate a business enterprise to make a profit. An entrepreneur is described as someone who has the ability and desire to make profits, manage and succeed in a start-up venture together with the risk entitled to it. The most prominent example of entrepreneurship is new business startup. In economics, a profit can be created by entrepreneurship connected with land, labor, natural resources and capital. This article describes the types, importance of entrepreneurship and characteristics of entrepreneur. 

Types of Entrepreneurship

There are four types of Entrepreneurship and they are classified as follows;

1. Large Business Entrepreneurship

2. Small Business Entrepreneurship

3. Scalable Startup Entrepreneurship

4. Social Entrepreneurship

1. Large Business Entrepreneurship:

These businesses have a lifecycle that is defined. Most of these businesses are growing and sustaining by offering new, innovative products revolving around their main products. Changing technology, consumer tastes, new competition, etc., creates pressure for major companies to create an innovative product and sell it in the new market to new set of customers. The established company either buys innovation enterprises or attempts to build the product internally to cope with the rapid technological changes.

2. Small Business Entrepreneurship:

These businesses are grocers, travel agents, contractors, carpenters, etc. In such businesses, people run or own their own company, and employ family or local staff. These businesses do not have the goal of 100 million or to take over an industry.

3. Scalable Startup Entrepreneurship:

An entrepreneur for this type generally start a business realizing the future can be transformed by their dream. And these type of businesses attract investors who think out of the box and encourage people to think out. The research focuses on a flexible market and so on creative models, recruiting the best and brightest employees. However, this type of entrepreneurship needs more venture capital to fuel their idea or company and back it up.

4.Social Entrepreneurship:

The aim of this form of entrepreneurship is to create products and services that address social needs and problems. Their sole goal and slogan is to work for humanity and not make any money.

Entrepreneur Characteristics

 

Not all businessmen are successful, there are certain features that make business successful. Few of these are outlined below:

1. Capacity to undertake risks:

Starting any new venture or entrepreneurship entails a large amount of risk of failure. An entrepreneur therefore needs to be bold, be able to assess and take risks as an essential part of being an entrepreneur.

2. Modernization or Newness:

Generating new ideas, starting a business and making money out of it should be highly innovative. Change can be the launch of a new product new to the market or a method that does the same thing but is more reliable and cost-effective.

3. Leadership quality and Visionary:

The entrepreneur should have a clear vision of their new venture to be successful. But a lot of resources and staff are needed to turn the concept into reality. Here, the standard of leadership is paramount because a leader imparts and directs workers towards the right path of success.

4. Approachable and unbiased:

Each situation in a business can be an opportunity and can be used to support a company. For example, Paytm recognized the impact of demonetization and accepted that there would be more need for online transactions, so it used the situation and during this period expanded massively.

5. Adjustable: An entrepreneur should be flexible and open to adapt as the situation requires. To be on top, a business person should be prepared to embrace change as and when needed in a product and service.

6. Know the commodity: An entrepreneur should know the product or commodity he or she likes. The product offerings should be the latest trend on the market. It is essential to know whether the product or service available suits current market expectations, or whether it is time to tweak it a little. A vital part of entrepreneurship is being able to point in on yourself and then adjust as required.

Significance of Entrepreneurship

1. Employment Creation: Entrepreneurship includes job creation. It offers an entry-level job, necessary for unqualified employees to obtain experience and training.

2. Creativity: It is the center of creativity or innovation that provides new product ideas, business, technology, and products quality, etc., and raises the standards of living by increasing income.

3. Influences the Development of Community and Society: A society grows larger if the base of work is large and diversified. This transforms culture and encourages services such as higher education investment, increased sanitation, less slums, a higher level of home ownership. Entrepreneurship thus assists the company in creating a more secure and high quality community life.

4. Fosters research and development: New products and services must be researched and checked before being launched onto the market. Therefore, an entrepreneur frequently invests money with research institutions and universities for research and development. This facilitates economic development. 

Thus entrepreneurial ambition is characterized by innovation and risk-taking, and is an essential part of the capacity of a nation to compete in an ever-changing and more dynamic global marketplace! Interested to organize an entrepreneurship training programme? Click here to know more.