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Business Jargons

A Business Encyclopedia

Entrepreneurship

Definition: Entrepreneurship refers to the process of creating a new enterprise and bearing any of its risks, with the view of making the profit.

It is an act of seeking investment and production opportunity, developing and managing a business venture, so as to undertake production function, arranging inputs like land, labour, material and capital, introducing new techniques and products, identifying new sources for the enterprise.

model of entrepreneurship

The person who creates a new enterprise and embraces every challenge for its development and operation is known as an entrepreneur. And the undertaking or organisation, typically a startup company, set up by the entrepreneur is called enterprise.

Characteristics of Entrepreneurship

  • Economic Activity: Entrepreneurship is an economic activity, as it involves designing, launching and running a new business enterprises in order to earn the profit, by ensuring best possible use of resources.
  • Creativity and innovation: It involves discovering new ideas and implementing it in business. The entrepreneur continuously evaluates current modes of running a business and identifies new methods and techniques for operating the business more efficiently and effectively.
  • Profit: The activity of entrepreneurship is undertaken with the sole objective of making the profit. It is also the reward of the efforts made and risk taken by the entrepreneur.
  • Risk Bearing: “Willingness to assume the risk” is the essence of entrepreneurship without which he/she cannot succeed. It occurs due to the creation and implementation of new ideas. Such ideas are often uncertain, and so the result may or may not be positive and instant.

Skills Required in Entrepreneurship

  1. Technical Skills: Oral Communication, ability to organise, productive ability, technical business management, coaching, network building, monitoring environment, ability to spot new trends, active listening, writing and interpersonal skills.
  2. Business Management Skills: Forecasting, planning, budgeting, decision making, negotiation, goal setting, human relations, marketing, finance, etc.
  3. Personal Skills: Ability to manage change, leadership, persistence, self-reliance, foresightedness, innovativeness, risk taking, self-reflection, discipline, self-confidence, honesty, patience, intelligence, tactfulness, emotional stability, etc.

Entrepreneurship Ecosystem

Entrepreneurship operates under an ecosystem called as entrepreneurship ecosystem. The ecosystem comprises of government programs and schemes which encourage entrepreneurship, non-governmental organisations that provide advisory services to entrepreneurs, and other organisations which promote and support entrepreneurship directly or indirectly.

Entrepreneurship is not confined to starting a new business but it about facing challenges at each step. It is an important tool for bridging the gap between science and marketplace, wherein a new enterprise is formed and new products and services are brought to the market.

Related terms:

  1. Intrapreneurship
  2. Hawley’s Risk Theory of Profit
  3. Theories of Profit
  4. Entrepreneurial Process
  5. Types of Entrepreneurs

Reader Interactions

Comments

  1. IMANI FIDELE says

    September 12, 2019 at 7:07 pm

    Thank you for this good program about entrepreneurship.
    it is more important for us .I want to learn it more and more.

    Reply
    • Stephen says

      March 4, 2021 at 2:28 am

      Thank you so much for helping us

      Reply
  2. ramesh says

    October 21, 2019 at 10:09 am

    good

    Reply
  3. SONAGARA VIJAY says

    December 23, 2019 at 4:43 pm

    useful knowledge

    Reply
  4. Jason Ojukwu says

    April 3, 2020 at 4:03 pm

    Decent definition

    Reply
  5. Tetteh Daniel Kwame says

    September 9, 2020 at 12:26 am

    Very well information

    Reply
  6. Yomi Adams says

    November 18, 2020 at 7:46 pm

    Yeah,i really love this piece about Entrepreneurship.Thanks so much.

    Reply
  7. Niyomwungeri Germain says

    December 31, 2020 at 5:59 pm

    Thanks, l like this short note about entrepreneurship.

    Reply
  8. Thomas Sundufu says

    January 20, 2021 at 9:28 am

    thank you very much for this opportunity I have some ideas now God bless you in the name of Jesus Christ

    Reply
  9. Nazeer adam says

    February 3, 2021 at 5:45 pm

    Thank you so much

    Reply
  10. Liliane says

    May 19, 2021 at 6:46 am

    I really appreciate this program, I earn a lot, so please go on giving us more information about entrepreneurs.

    Reply
  11. tirzah. says

    June 2, 2021 at 10:58 pm

    Thank you so much, I have learned a lot.

    Reply
  12. Kevin says

    July 17, 2021 at 10:30 am

    Thanks so much for the post.

    Reply
  13. Lucia Elias says

    July 28, 2022 at 10:11 pm

    Thank you so much I really appreciate this program, I have learned a lot

    Reply

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