What is Entrepreneurship? Definition, 5 Types, 5 Scopes, Characteristics, 5 Importance, | (PDF Included)

We usually hear that someone is an entrepreneur who has established his or her own business. It is also the case that when we hear the term entrepreneur; we relate it with a person who has or is setting up their own ventures or striking it on their own.

Entrepreneurship is the capability and readiness to create, organize, and drive an enterprise, along with any of its concerns, in order to make a profit. The most popular example of entrepreneurship is the starting of a new business.

In economics, entrepreneurship associated with land, labor, resources, and capital can make a profit. Discovery and risk-taking define the entrepreneurial vision and is an essential part of a nation’s strength to succeed in an ever-changing and more aggressive global marketplace.

Definition of Entrepreneurship

Entrepreneurship is starting and developing a company, delivering something new to the market, or organizing the means of production superiorly.

Basically, entrepreneurship is the activity of setting up a business or an enterprise, taking financial risks in the hope of profit.

Entrepreneurship refers to the approach of developing and managing a business venture in order to earn profit by taking several financial risks in the corporate world.

Entrepreneurship is the capability and willingness to set up, develop, organize, and manage an enterprise along with any of its risks to make a profit.

Entrepreneurship is the act of creating a business or businesses while building, scaling, and manage its risks to generate a profit.

Enterprise Definition

 The word enterprise represents the actions of someone who shows some initiative by taking a risk by planning, setting up, funding in, and running a business.

Entrepreneur

An entrepreneur is a person who sets up a new business, managing most of the risks and enjoying most of the rewards. Setting up a business is known as entrepreneurship. The entrepreneur is mostly seen as an innovator, a source of new concepts, products, services, and business.

Entrepreneur Definition

An entrepreneur is a creator, a challenger, and also a driver. Someone that produces something new, either an initiative, a business, a company, or an organization. He or she may be the beginning of a venture, project, or activity. 

 An entrepreneur is a person who starts a business, diagnoses and solves problems, is innovative, opportunist, self-starter, open-minded, and risk-taker, desiring to make revenue from the enterprise.

Types of Entrepreneurs

  1. Social Entrepreneurs: An individual who involves in innovative solutions to social issues. This type of entrepreneurs adopt a style of which he/she can use to create and sustain social values.
  2. Serial Entrepreneurs: Serial entrepreneurs start several businesses, hoping to operate any of them for a long time. They are mainly high risk-takers with a lot of extraordinary ideas and are not always involved in a career with a particular company or business. 
  3. Lifestyle Entrepreneurs: A person who makes a profit from personal passion. He/she presented their lifestyle ahead of every opportunity. The lifestyle entrepreneur builds a business they are passionate about and develops the business into a long term, residual a continuous income.

Characteristics of Entrepreneurship / Characteristics of an Entrepreneur

What is Entrepreneurship? Definition, 5 Types, 5 Scopes, Characteristics, 5 Importance, | (PDF Included)
Elon mask, a successful entrepreneur

There are several characteristics that make entrepreneurs successful. Here are some of them.

Must Have the Ability to Take Risk:

Setting up any new business or enterprise involves a significant amount of failure risk. Thus, an entrepreneur needs to be fearless and able to figure out and take risks, which is a fundamental side of being an entrepreneur.

Innovative Mindset:

It includes discovering new ideas and implementing them in business. The entrepreneur must evaluate current modes of running a business and identify new methods and approaches for operating the business more effectively.

Passion:

Passion calls for you to perform even when you do not hope for payment at the end. This is true if you are starting a small business. Your entrepreneurial activity will involve establishing your small business. Entrepreneurs should always be passionate about their objectives and ready to sacrifice everything for their dreams to be achieved.

Confidence:

If success is a recipe, then confidence is the principal ingredient. If you’re an entrepreneur, you should be confident in both yourself and your services. While undertaking a business activity, you will encounter many obstacles and difficulties. At that time, you shouldn’t lose your confidence and face the situation with courage.

Visionary and Leadership Qualities:

To become successful, the entrepreneur should have a sharp and distinct vision of his new enterprise. However, to transform the concept into reality, a lot of resources and employees are needed. Also, leadership quality is required to motivate and guide your employees towards the right track of success.

Decision Making

You must have good decision-making capabilities to be a successful entrepreneur. You should be ready to make the right decision immediately to bypass any mistakes. This is a must-needed skill that every entrepreneur with an entrepreneurial mindset should seek to acquire.

Types of Entrepreneurship

Whenever you’re looking to start a business, you must first decide what kind of entrepreneur you’re going to be. This approach will guide you to set your goals and layout of your company’s structure.

Here I’m discussing the 5 types of entrepreneurship;

Social Entrepreneurship:

A socially responsible business is focused on solving social complications, such as access to food, wealth, and education. The objectives of these companies are to make the world better (although, for most companies, the ultimate goal is to make money). Such companies produce products and services to achieve these ambitious goals. Sometimes this model defines a nonprofit organization as well.

Example:

Vikram Solar,” one of the broadest solar energy companies providing mono and bifacial solar panel modules, serving over six continents.

Innovation Entrepreneurship

Innovation entrepreneurship is focused on new inventions and ideas, which are then converted into businesses. These companies aim to change the way how people live and seek to make products and services stand out, taking care of something that other companies haven’t.

Example:

Google LLC (since 1996) is an American multinational company that intends to organize the world’s information and make it universally accessible and useful.

Big Business Entrepreneurship

One significant disadvantage for a business when it grows larger is that it moves casually. As a result, big businesses often try to jump-start entrepreneurship by catching up with a smaller company and adding innovation to the new acquisition.

The larger company may serve limited product or service life cycles and have trained professionals take the reins of new projects. Massive tech companies such as Google and Microsoft often do this by acquiring a small developer with auspicious technology as part of its long-term objective.

Example:

After being partners for many years, finally, Disney bought Pixar animation studio in 2006.

Small Business Entrepreneurship

In the case of small business entrepreneurship, innovation is often more reasonable and based on a new variation in currently available products and services. While profits are used to aid the company’s family rather than business expansion. These businesses are usually made up of friends and family members.

Example:

Local restaurants, grocery shops, dry cleaners, bakeries, and mom-and-pop stores are good examples.

Scalable Startup Entrepreneurship

This type of start-up entrepreneur sets up a business recognizing that their vision can change the world. They attract investors who understand and support people who think outside of the box. The analysis concentrates on scalable business and experimental models, so they appoint the best and the smartest employees. They expect more investment capital to fuel and back their project.

Example:

 Uber appeared as an idea to revolutionize the taxi business and, after bringing investment, the company exploded and took massive market share in a very short period.

Scopes of Entrepreneurship

The small-scale business gives good scope for the growth of entrepreneurial activities. An entrepreneur has excellent opportunities and great scope in selling services rather than producing a product. The entrepreneur can get better results if the size of the small business is small and limited. For this reason, that small enterprises have higher productivity, greater performance, and low labor turnover.

Scopes in Industrial Sector

Small-scale businesses involve a prominent place in the industrial part. They have turned over 40% of the overall industrial production in 1998. The basic intentions underlying the development of small-scale are the increment in the supply of produced goods, promotion of capital report, the development of domestic entrepreneurial capacities and skills, and the creation of more employment opportunities.

This sector gives a broader scope for the potential entrepreneur to expand his or her own business. There is an excellent opportunity and enormous potential to use technology-based products in the small-scale enterprise or sector.

Agricultural and Associated Industrial Sector

There is a huge scope for entrepreneurial movements in the agricultural sector. By creating a link between agriculture and associated industries, the rural entrepreneur can capitalize on opportunities in areas of agriculture, processing, and marketing.

The government has given preference to the IRDP program and ensured the sufficient flow of credit to small and marginal farmers through re-financing facilities and by setting up national banks for agriculture and small development.

Service Sector

The service sector has gained attention for entrepreneurs because of its fast expansion. The service sector comprises all kinds of business and provides opportunities to the entrepreneurs in business such as hotels, transport, tourist services, personal care, home services, food services, photography services, repairing services, electrical support, and many others.

The Rural Economy

Nowadays, the rural economy has an excellent opportunity for an entrepreneur to start a business. They can exploit opportunities for a venture in some shops or services. Entrepreneurship does well in the small business sector as they have tremendous opportunities for manufacturing and non-manufacturing activities.

Entrepreneurship PDF

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Importance of Entrepreneurship

Entrepreneurship is the effective process of creating wealth and innovating things of value that develop the welfare of an entrepreneur.

Here is some importance of entrepreneurship:

Innovation

Entrepreneurship is the field of innovation. It reaches beyond discovery and does the commercialization of innovations.

Therefore, entrepreneurship takes care of innovation that provides new ventures, commodities, technology, market, condition & quality of good, etc. to the economy that increases Gross Domestic Products (GDP) and standard of living of the communities.

Creation of Job Opportunities

The entrepreneur gives employment opportunities to the people by setting up new industries, also increases per capita income and cost of capital investment, uses innovations in different fields, provides efficient coordination between sources, and manages economic affairs.

Thus, entrepreneurship contributes to creating employment opportunities.

Improves Standard of Living

 As entrepreneurs see an issue associated with the lives of the people, they use their innovative thinking to find a solution.

They start a new industry and generate employment. When new employees are hired and get paid, this income is used in the local economy. This creates incremental wealth for the people and results in improving the standard of living for all involved. 

When an enterprise introduces a better product or service, opponents or competitors need to improve or withdraw themselves from the industry. Increasing competition causes everyone to improve their performance and become the best at their jobs. They don’t have an alternative rather than to be more productive and live a higher standard of living.

Introduce Changes in the Community

Some business organizations demand highly skilled people. This makes a demand for schools, colleges, workshops, and training institutes that can provide skill training. The community reacts to the demand by setting up training institutes and everyone in the community benefits. The company employs the individuals it requires, and the community gets highly qualified and trained people. 

Entrepreneurs make preparations for organizing food drives, making houses, support cleanups, and giving to charities. Some may also help the improvement of infrastructure in society. This undoubtedly helps in the advancement and progress of the community. 

Leads to Economic Growth

Entrepreneurship is a process that appears with new businesses generating capital for civilization. New industries contribute economic wealth as entrepreneurs invest funds to make new products and services. Venture capitalists and angel investors also provide more investment, raising the number of funds that involve the growth and progress of the organization. 

Businesses make profit and give taxes also, employees associated with the business pay income tax. The government uses this revenue to stimulate the economy and make better facilities.

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