Entrepreneurship is the ability to develop, run and organize a business to make a profit. Or It also refers to creating a new enterprise with the name of making a profit. Joseph Alois Schumpeter introduced the concept of entrepreneurship. He is considered the father of entrepreneurship.

Let’s look at the basic term used in the context of entrepreneurship.

Entrepreneur

An entrepreneur is someone who undertakes risks and creates a new enterprise. Entrepreneurs are commonly innovators, idea generators, and service providers. They bring different new ideas to the market for economic development.

Enterprise

Enterprise refers to the business venture that an entrepreneur has created.

Types of entrepreneurship

Entrepreneurship is classified into the following types.

Small business entrepreneurship

A type of entrepreneurship in which people run their own business and hire their family members and local employees. These businesses are carpenters, grocery, plumbers, electricians, and consultants. This type of business comprises 10-20 employees. Entrepreneurs feed their families on business profit. They run their business by taking small loans or loans from friends and family.

Large company entrepreneurship

Such companies bring new innovative products to the market. They bring change in products according to changes in technology, customers preference, competition, etc. Companies either buy innovative enterprises or attempt to construct the product internally to cope with the rapid technological change.

scalable startup entrepreneurship

These businesses begin on a small scale but later grow with consistent effort and attract investors to invest in business. Most technology companies come under the category as they start their venture as home or garage offices.

Social entrepreneurship

A type of entrepreneurship in which entrepreneurs focus on social needs and problems. Their main goal is to provide services and products to solve social issues.

Importance of entrepreneurship

The importance of entrepreneurship is so broad that it is quite tough to explain. However, some important aspects of entrepreneurship are in economic development and society.

Entrepreneurship generates employment

A large number of new jobs and employment opportunities are generated by entrepreneurship. It provides entry-level jobs that turn unskilled employees to skill ones.

Promote innovations

Entrepreneurs bring new innovation that opens the doors to new products, startups, ventures, and technology. Through research, entrepreneurs not only make innovations but also bring changes to existing inventions and solve the problems that existing products have not yet solved.

Entrepreneurship brings Social Changes.

Entrepreneurs bring new technologies, systems, products, and services that bring change in society and promote facilities like higher expenditure on education, better sanitation, fewer slums, and a higher level of homeownership. These changes improve people's lifestyles and economic growth and gradually impact national and global changes.

Promote Research and Development

Research and development is an essential tool for growing and improving your business. A researcher has said that a business that has an R&D strategy has a greater chance of success than businesses that don’t. This is because entrepreneurs always working to discover new ideas and improve existing ones. So, they promote research and development.

Characteristics of entrepreneurship

Entrepreneurs contain definite characteristics that make entrepreneurship successful.

Ability to take a risk

The ability od take a risk is important for an entrepreneur. Starting any new business involves considerable risk, including investing in ideas, using unorthodox methods, and generating funds.

According to entrepreneurship essentials, entrepreneurs who actively manage the relationship between risk and reward position their companies will get benefits.

Therefore, entrepreneurs need to be courageous and take risks.

Innovations

Entrepreneurs give birth to innovations. Innovation is the characteristic of some entrepreneurs but not all possess it. Some businesses create new innovations by keeping in mind the needs and problems of the people. But some businesses have taken existing products and services drastically and improved them to meet the need of the market.

Passionate

Successful entrepreneurs have a passion, and they know how to convey this passion to others. Passion is a driving force with which entrepreneurs strive for the better.

Entrepreneurship knows that they contribute to finding the solution that will help people's problems that keep the focus on their objectives.

Team building

Successful entrepreneurs are aware of their weaknesses and strengths. They hold the shortcoming effectively that let them back. Entrepreneurs build a well-round team that drives ventures toward success. It is crucial to have a teammate who has complementary talents and contributes to the common goal.

Concept of Entrepreneurship