The term "entrepreneurship" comes from the French term "entrepreneur". An “entrepreneur” is an individual who establishes an organization, as well as a manager who gathers all resources to run the enterprise successfully. And “entrepreneurship” is an act of being an entrepreneur.
“Entrepreneurship” can also be defined as a process by which an entrepreneur tries to find a solution to a problem or to make things simpler and better, by making a profit from it.
Several experts mention - leadership, managerial, innovation, and risk-bearing as major components of entrepreneurship.
An entrepreneur is one who has set some goals and drives the entire team together to achieve them. An entrepreneur needs to create a conducive environment for his team to make them more productive. Also, communication with the team is of the utmost importance to know their opinions and ideas which will enhance the development of the enterprise.
Managerial role -
An entrepreneur has to do many tasks while setting up an enterprise. To list a few - an entrepreneur has to gather all resources at a proper location to approach maximum customers. Next is to find people who can do their best to bring your dreams into reality and bring innovative ideas to suffice the changing preferences of the customers.
Innovation requires creativity, to do or create something unique that fascinates the target audience and gathers their attention which therefore enhances sales of the enterprise. It is not always necessary to think out of the box but one should also be able to create a unique piece with the contents inside the box. Do go through these blogs -Are Creativity and Intelligence related? and Innovation Management. An entrepreneur always need not be the innovator himself, but one who can foresee through the requirements of the customers and tries to implement the changes.
In the Schumpeterian analysis, the role of the entrepreneur is a determining factor in the rate of economic development. In this business world, with a new drift coming up every morning, only an entrepreneur with a clear vision can establish an enterprise that has the potential to generate profit. So when one decides to start an enterprise, he not only creates a job for himself but also creates several employment opportunities for others too. Since entrepreneurship generates employment for several people, it also leads to the economic development of a place.
Risk bearing -
In the “Knightian” theory of entrepreneurship, entrepreneurs provide insurance to workers by paying fixed wages and ‘bear all the risk of production’. An entrepreneur is one who considers all permutations and combinations and then takes a calculated risk and has a prudent vision.
Entrepreneurship involves a plethora of aspects, an entrepreneur also needs to have some traits to be a successful entrepreneur. To know which traits make an entrepreneur, successful then do read this blog - Traits of Successful Entrepreneurs
Also, an individual willing to be an entrepreneur needs to identify the things to be done, while creating a new organization. So do read this blog too - To-do list for Aspiring Entrepreneurs
1. Schumpeter’sTheory of Economic Development- Economics-Article Shared by Ayesha J
2. Newman, Andrew. (2007).Risk Bearing and Entrepreneurship. Journal of Economic Theory. 137. 11-26. 10.1016/j.jet.2007.03.004.
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