The word entrepreneur is derived from the French word entreprendre, which means to do something or to undertake. The first academic usage of the term was by economist Richard Cantillon in 1730.i According to him/her, the bearing of risk engaging in business without an assurance of the profits that will be derived is the distinguishing feature of an entrepreneur.
Entrepreneurship is the process of creating new enterprise. It involves purposeful and systematic innovation. Innovation is doing something new or different. Innovation is essential to address the changing demands of the customers and grab opportunities. Risk bearing is another basic element of entrepreneurship. Risk is the degree of uncertainty involved in a particular work or activity. The risk arises due to changes in organizational and market conditions. Innovation is always risky. It also involves the exploration of opportunity. For this, resources are acquired and managed. They may be capital, men, material, technology, equipment, and intellectual properties.Entrepreneurship is important for economic and social development. The entrepreneurs develop new products and technology which increase the productivity of all sectors of the nation.
The following are some of the notable definitions of entrepreneurship.
Hisrich et.alii
Entrepreneurship is the process of creating something new with value by devoting the necessary time and effort; assuming the accompanying financial, psychic, and social risks and uncertainties; and receiving the resulting rewards of monetary and personal satisfaction.
Schumpeteriii
Entrepreneurship is based on purposeful and systematic innovation. It essentially consists in doing things that are not generally done in the ordinary course of business routine.
Druckeriv
Entrepreneurship is gathering and using resources to produce results. It is allocating resources to opportunities rather than problems.
Lambv
Entrepreneurship is that form of social decision making performed by economic innovators.
Colevi
Entrepreneurship is the purposeful activity of an individual or a group of associated individuals, undertaken to initiate, maintain or aggrandize profit by production or distribution of economic goods and services.
From the above discussion and definitions, it may be concluded that entrepreneurship is a creative process of starting and managing a venture for seeking opportunities.
Features of Entrepreneurship
Entrepreneurship involves creation of new ventures with a certain vision. It is a creative process involving exploitation of market opportunities. It has certain features. The important ones are discussed below.1. Risk:
Risk is the probability of loss or damage that mainly occurs due to external vulnerabilities. Entrepreneurship involves assumption of risks. Entrepreneurial risks may be financial, career, social, health and employee trusting risk.
2. Vision:
Vision is the desired future state of an organization. It is an imaginary ideal situation of the organization. Entrepreneurship involves creation of a venture with a certain vision. All the entrepreneurial activities are directed towards achieving the vision.
3. Leadership:
Leadership is the ability to anticipate, envision, maintain flexibility, and empower others to create change as necessary. It is multifunctional in nature and involves managing through others. Leadership is always at the heart of entrepreneurial success. Hence, an entrepreneur must have necessary leadership qualities and skills.
4. Innovation:
Innovation is always at the center of entrepreneurship. Business ventures must bring ideas, improved and unique products and innovative solutions to the business problems. Innovations is all about turning the idea into reality and keeping the business apart from the competitors. Innovation is essential for grabbing market opportunities.5. The value:
Businesses must create customer values through their products and services to succeed. By bringing value to the customers, entrepreneurs create a network of loyal customers. Entrepreneurial success is largely dependent on the creation of customer value.
6.Opportunity:
Opportunity is the favorable conditions in the environment. The entreprenuerial activities are directed toward grabbing opportunities. For this, customers’ needs and expectations as well as the market conditions are analyzed and the organization is prepared accordingly.
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