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What is Entrepreneurship and How to Become an Entrepreneur (1)

Entrepreneur

What is Entrepreneurship and How to Become an Entrepreneur: Lesson 1

Entrepreneurship is the process of creating new ventures. It involves creativity and innovation. It requires an assumption of risks for the reaping of rewards. It brings together resources. It provides self-employment to an individual. It creates employment opportunity for others.

Entrepreneurship is a mindset of creativity and risk-taking.

It is the process of identifying opportunities. It brings together factors of production to exploit those opportunities. It plans, organizes, operates and assumes the risk of a venture. It aims for innovation, profitability, and growth.

The entrepreneurial spirit has appeared as the engine of Economic Development. Enterpreensurhip has resulted in millions of new ventures in the world. It has appeared as the driving force for economic development. The interest in the concept of entrepreneurship is growing day by day.

Entrepreneurship is the creative process of exploiting opportunities by starting a new venture through resource pulling risk-taking innovating and managing for rewards.

Let’s move into Entrepreneurial Process

  • Conduct Opportunity
  • Develop a Business Plan
  • Set-up the Venture
  • Acquire Financial Resources
  • Implement Business Plan

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Conduct Opportunity

The Entrepreneurs generate new business ideas through opportunity analysis. A promising opportunity for value is identified and selected.

Develop a Business Plan

A business plan is developed as a road map of the new venture. It describes venture. It sets goals to be achieved. It states the process and technology to be used. It identifies the target market. It determines product, price, promotion and distribution aspects. It assessed. Milestones are set for implementation.

Entrepreneur

 Set-up the Venture (Start-up)

 The new venture is established. The legal aspect of the venture is determined. The legal form can be a proprietorship, partnership, and company. Site for the volume is selected. The scope can be service, manufacturing, construction, and infrastructural activities.

 Acquire Financial Resources

Various options available for financing the new venture are examined. Early-stage funding can be from self, friends and government sources. Growth stage funding can be debt from financial institutions or public offer of shares.

Also Read: Commingled Fund

 Implement Business Plan

 The venture is organized. Human resources are acquired and developed. The entrepreneur builds a management team. The value of intellectual property consisting of patents, trademarks and copyright are protected. An e-business strategy is developed. The new venture becomes operational.

Importance of Entrepreneurship

Entrepreneurship creates new ventures and new jobs. It is the source of innovation. It creates new processes, products, and markets. It facilitates changes and it puts economic development on a new course. So, Entrepreneurship is the driving force for economic development and it’s significant in the following ways:

Importance of Entrepreneurship

  • Capital Formation: Capital is an important factor for economic development. Capital formation is an addition made to the existing stock of physical and human capital. Entrepreneurs stimulate investment interest in new ventures to mobilize idle saving of public. Entrepreneurial firms grow into larger firms.
  • Employment Creation: Entrepreneurs create employment opportunities for self and others. New business ventures are important sources of employment opportunities. Unemployment goes down and income levels increase in the society. Entrepreneurs provide employment to special focus groups, such as women and disadvantaged persons. We will make an article about special focus groups.
  • Increased Productivity: Entrepreneurs make effective utilization of resources. This leads to an increase in production and productivity. They use new technology that facilitates productivity increases. The rate of economic growth also increases. Resources get effectively exploited to provide goods and services to customers. They reinvest profit to expand an existing venture or start a new venture to maximize value.
  • Balanced Development: Entrepreneurs start new ventures in various parts of the country. Incentives and facilities granted by the government provide an attraction for starting a business in backward development. Local resources get utilized and establish backward linkages with the suppliers and forward linkages with the distributors. This aids the balanced development of the country – So, larger firms emerge from small firms.
  • Equitable Distribution: Entrepreneurs stimulate the equitable distribution of wealth, income and political power. They start risky, ventures and run them successfully. They help reduce the concentration of wealth, income and political power in the hands of big houses and global.
  • Export Promotion: Entrepreneurs develop new products for the needs of foreign markets. They tailor their products to the changing needs and preferences of foreign customers. Exports bring valuable foreign exchange essential for economic development. They also facilitate import-substitution.
  • Industrialization: Entrepreneurial activities are the prime source of industrialization in developing countries. Such activities provide employment opportunities. Underemployed people in agriculture move to industries. People learn new skills and earn more income. Products become cheaper and of good quality.
  • Opportunities for Entrepreneur: (1) Independence (2) Better Lifestyle (3) Profit
China is experimenting entrepreneurship through small scale enterprises and has been successful in increasing and motivation in the world.
Malaysia has been successful in developing entrepreneurship in ethnic called Sons of Soil.

What is the Meaning of Individual Entrepreneur (Entrepreneurship)?

An entrepreneur is a French word. It got economic connotation in the early 18th century. According to ILO “Entrepreneurs are people who have the ability to see and evaluate business opportunities, together with the necessary resources to take advantages of them and to ensure the appropriate action to ensure success”.

Also Read: What Is an Entrepreneur?

Entrepreneurs perform the functions of entrepreneurship. They launch new ventures and creative individuals. They have vision and inspiration to create new ventures. They identify new business opportunity and take advantage of it and the risks very well. They are better informed and possess greater experience. Above all, they are achievement-oriented individuals driven to seek new challenges and accomplishment.

Relationship Between Entrepreneur and Entrepreneurship

Entrepreneur

Entrepreneurship

Refers to an Individual

Refers to a Process

It is the creator

It is a creation

It is visionary

It is a vision

It is an innovator

It is an innovation (application of new knowledge)

It is risk-bearer

It is a process of risk-bearing

It is a Motivator.

It is motivation

It is an organizer

It is an organization

It is a Leader

it is leadership

It is am an imitator

It is imitation

So, What is Entrepreneurial Venture?

Entrepreneurial Ventures can be of the following types:

What is Entrepreneurial Venture

  • Lifestyle Venture: The driving force is independence, autonomy, and control. Large sales or profits are not expected. it provides comfortable living to entrepreneur.
  • Profitable Venture: The driving force is only profit. The size is small. Entrepreneur enjoys autonomy and control.
  • High Growth Venture: The driving force is very high sales and profit growth. Capital needs are very high.

What are the types of Entrepreneurship?

 Entrepreneurship can be divided into 3 types.

  • Innovative
  • Behavioral
  • Focus Group

What are the types of Entrepreneurship

We will discuss more… In Next Post

 Conclusion:

Entrepreneurship is a mindset of creativity and risk-taking and also it is the process of identifying opportunities. It brings together factors of production to exploit those opportunities. It plans, organizes, operates and assumes the risk of the new venture. It’s aiming for innovation, profitability, and growth always.

The post What is Entrepreneurship and How to Become an Entrepreneur (1) appeared first on Base Read.



This post first appeared on Finance And Computer Technology, please read the originial post: here

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