Entrepreneur and
entrepreneurship are the acronyms of doing business in the contemporary world.
The one in the driving seat in this activity is known as entrepreneur and the
myriad of activities done by this person is commonly known as entrepreneurship.
But this cannot be called as an academic definition of entrepreneurship. In
simple words we can define entrepreneurship as the capacity and willingness of a
human being to develop, organize and manage a business venture along with the
related risks in order to make profit. The risk and uncertainties are further
submerged into ambiguity and true uncertainty. The concept of true uncertainty
is used where an entrepreneur wishes to bring something really novel to the
earth.
The most common example of entrepreneurship is starting a new business by any
person. When someone starts a new business he/she will carry out feasibility
studies, work out return on investment, formulate a business plan, workout a
suitable organization, make a management plan to manage human, financial and
material resources etc, this series of activities in a common language will fall
in the realm of entrepreneurship.
In economics, entrepreneurship combined with land, labor, natural resources and
capital can produce profit. Entrepreneurial spirit is characterized by
innovation and risk-taking, and is an essential part of a nation's ability to
succeed in an ever changing and increasingly competitive global marketplace. The
land, labor and capital are the indispensable inputs in the process of
production but they are not adequate for economic growth. Instead, Human
creativeness and productive entrepreneurship are required to merge these inputs
in lucrative ways. An institutional background that supports free
entrepreneurship becomes the crucial determinant of economic growth. So the
entrepreneurship should take center stage in any effort to explain long-term
economic development.
If entrepreneurship remains as essential to the economy as it was in the early
times, then the ongoing breakdown of typical economics to adequately account for
entrepreneurship specify that basic doctrine require re-examination. The
distinctiveness of an entrepreneurial economy is high stages of novelty joint
with high level of entrepreneurship which effect the creation of new ventures as
well as new industries. Research on entrepreneurs suggests that these developing
individuals in a community are dependent upon various interconnected economic,
technical and organizational skills.
An entrepreneur is a risk bearer and an innovator who is given the role of being
an innovator and is totally opposite to the capitalist. Because capitalists
supply and the entrepreneur the one who is viewed as an individual disrupting
the existing equilibrium. On the other hand, Innovation is a chaotic, impulsive
economic progression which cannot be modeled using the equilibrium based logical
procedures used in typical economic theory.
Risk evaluation by the entrepreneur is one of the most essential activities that
an entrepreneur undertakes. In this realm falls the analysis of the market risks
which includes facets like new entrants to the market, ease of entrepreneur,
potential threat to market share etc. Operational risks, staffing risks,
availability of skilled workforce, union issues, financial issues, and issues
related to investors and managerial risks are also analyzed in depth.
After carrying out a detailed analysis the entrepreneur comes out with the risk
management plan. Detailed plans are more often found as part of internal plans.
Plans written for funders may need to include a high level of description if
there are significant controllable risks.
Entrepreneurial activities are different for different types of organization.
For example an arms manufacturing company will have a different entrepreneurial
activities than a shoe making company. Entrepreneurship ranges in scale from
solo projects to major undertakings creating many job opportunities. Many "high
value" entrepreneurial ventures seek venture capital or angel funding in order
to raise capital to build the business. Angel investors generally seek
annualized returns. Many kinds of organizations now exist to support would-be
entrepreneurs including specialized government agencies, business incubators,
science parks, and some NGOs. In more recent times, the term entrepreneurship
has been extended to include elements not related necessarily to business
formation activity such as conceptualizations of entrepreneurship as a specific
mindset resulting in entrepreneurial initiatives e.g. in the form of social
entrepreneurship, political entrepreneurship, or knowledge entrepreneurship have
emerged.
In the aforementioned paper the definition of entrepreneurship has been given in
the generic terms and some the activities undertaken by the entrepreneur are
also explained in a simple manner. It must be kept in mind that these academic
definitions and the activities given here by no means are a measure of a success
or failure of an entrepreneur. Success will depend upon the individual behavior
and the management style that suits a particular type of an organization.