By Dr. Nitya Khurana
Assistant Professor, Jagannath International Management School, Kalkaji
Entrepreneurship may be described as the conceptualization and manifestation of fresh ideas by astute individuals who can use knowledge and organise resources to put their vision into action. Entrepreneurship is defined as a person’s ability (i.e., knowledge and skills) to turn ideas for starting a business unit into reality by establishing a firm on the ground to fulfil the requirements of society and the country in the hopes of making a profit.
Entrepreneurship is a system made up of entrepreneurs (and future entrepreneurs), institutions, and government acts. Increased levels of entrepreneurial activity are the desired policy result of this system
Entrepreneur
An entrepreneur is a person with the ability and motivation to create, manage, and thrive in a starting business, as well as the risk that comes with it, in order to make money. The finest illustration of entrepreneurship is the start of a new company enterprise. Because they bring new ideas to market by replacing old ones with new technologies, entrepreneurs are usually referred to as innovators or providers of new ideas.
Small, home-based enterprises and major corporations are two types of businesses. An entrepreneur’s revenues are derived from a mix of land, natural resources, labour, and capital, according to economic theory.
In a nutshell, anyone who has the desire and perseverance to establish a new business and is prepared to shoulder all of the responsibilities that come with it can become an entrepreneur
Characteristics of Entrepreneurship
- Risk-Taking Ability- Starting a new firm carries a high risk of failure. As a result, becoming an entrepreneur necessitates being daring and capable of assessing and taking risks.
- Creativity and innovativeness – Creativity is required to generate new ideas, start a business, and profit from it. The introduction of a new product to the market or the invention of a technique that achieves the same aim in a more efficient and cost-effective manner are examples of change.
- Leadership and visionary qualities- To be successful, the entrepreneur must have a clear vision for his new enterprise. However, putting the plan into action will necessitate a significant amount of resources and personnel. Leadership quality is critical in this situation because leaders impart and guide their colleagues down the route to success.
- Open-Mindedness- In business, every scenario can be viewed as an opportunity that can be exploited to the company’s profit. Paytm, for example, saw the significance of demonetization and realised that the need for online transactions would increase, thus it took advantage of the circumstance and grew rapidly during this period.
- Adaptable- An entrepreneur that succeeds must be able to adjust to changing conditions. A businessperson must be able to embrace change in a product or service as and when it is required in order to be successful
- Understand Your Product: A business owner should be well-versed in both his or her company’s product offerings and current market trends. It’s crucial to figure out whether your current product or service meets market demands or whether you need to make any changes. Entrepreneurship demands the ability to hold oneself accountable and make necessary adjustments
Significance of Entrepreneurship
- Generation of Employment – Employment generation is a by-product of entrepreneurship. It offers an entry-level role, which allows unskilled workers to gain experience and training.
- Innovation- It is a centre of innovation that develops new product ventures, markets, technology, and product quality, among other things, to raise people’s living standards.
- Contribution to Society and Community Development- A wide and diverse employment base benefits a society. It affects societal changes and encourages amenities such as more educational spending, improved sanitation, fewer slums, and a higher rate of homeownership. As a result, entrepreneurship aids the organisation in achieving a more secure and high-quality community life.
- Raising the Standard of Living- Entrepreneurship helps to raise a person’s standard of living by increasing their income. The term “standard of living” refers to an increase in a household’s consumption of various products and services over a given time period.
- Promotes research and development—Before being released to the public, new products and services must be extensively studied and reviewed. As a result, an entrepreneur collaborates with research institutes and universities to fund research and development. This promotes economic development, research, and construction in general.
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