Concepts, Characteristics, & Economics
Concepts:
Enterprise and entrepreneur combines to form
entrepreneurship, where, entrepreneur is an individual and enterprise is an
organization, specifically, a business organization, whereas, entrepreneurship
is the activities of entrepreneurs in organizing & running enterprises. Entrepreneurship is a profession for the persons accepting challenges, many
people prefer this profession in order to become rich & celebrity, and the
number is in an increasing trend in the 21st century. Development of
a country, both industrially & economically, depends upon its
entrepreneurial population, because it is a strong force to convert a weak
economy to a stronger one. Changing needs of the society made entrepreneurship
an important ingredient, without which life shall be very difficult, &
hence, entrepreneurship has been used to be practiced from the very beginning
of the human civilization. ‘Entrepreneurship is a creative activity, the
entrepreneur being an innovator who introduces something new into the economy,
a new method of production not yet tested by experience in the branch of
manufacture concerned, a product with which customers are not familiar, a new
source of raw materials or of new market hitherto unexploited and other similar
innovation’ – J. Schumpeter.
Simply speaking, entrepreneurship is the creative or innovative activity, where, the entrepreneur is the creator or innovator or purchaser or borrower of a product or service or technology or idea or process or market etc. involving any of them or all of them or any combination thereof with or without any modification or alteration to make value added products or services to satisfy the needs of people with a view to ensuring good return & growth.
Simply speaking, entrepreneurship is the creative or innovative activity, where, the entrepreneur is the creator or innovator or purchaser or borrower of a product or service or technology or idea or process or market etc. involving any of them or all of them or any combination thereof with or without any modification or alteration to make value added products or services to satisfy the needs of people with a view to ensuring good return & growth.
Characteristics:
Decision making is one of the root features of
entrepreneurship. A decision is a resolution made by choosing an alternative
from various alternatives available for the purpose of implementing it to
achieve desired goal. As entrepreneurship involves both risk and uncertainty,
decision making is essential to handle risks & convert uncertainty into
certainty.
Entrepreneurship revolves around carrying on
economic activities directed towards the creation and successful operation of
an enterprise. It is primarily concerned with satisfying the needs of
promoters, financiers, customers, & society as a whole through the process
of production & distribution of goods & services.
Organizing is collecting resources for
implementation of plans & programs. Entrepreneurship is the coordination
& integration of various factors of production for the purpose of business
activities, through which, enterprise building initiates & the goal of
organizer achieved.
The theme of innovation may be associated with any
activities of entrepreneurship, and these innovations are the keys to the
success of an enterprise.
Risk is an inherent and inseparable element of
entrepreneurship, barring which, there cannot be any entrepreneurship.
Management of risk is the secret to the success of an entrepreneurship. Converting
risk into opportunity and opportunity to gain are the essence of
entrepreneurship.
Entrepreneurship is the result of management of
resources for economic gain & this is possible by virtue of proper
leadership and team work.
The gap between demand and supply of any product or
service is the playground, where all economic activities concentrate. Filling
the gap and obtain benefit out of it is the prime motto in entrepreneurship.
This gap creates opportunity & entrepreneurship takes advantage of it.
Economics:
Entrepreneurship and entrepreneurial activities
determine the economic structure and status of a nation and vice versa.
A capitalist economy represents free enterprise,
means freedom to save and invest; free competition; consumer sovereignty, and
the government acts like a facilitator. Product prices are determined on the
demand and supply with reference to the cost of production.
Under socialist economy, entrepreneurship is
provided to render service to the people and society without making any profit.
Here private entrepreneurship is not encouraged.
Mixed economy allows both the private and public
sectors to venture into entrepreneurship, even in the same line of production
of goods and services. Restrictions are imposed by the controlling authority,
i.e. government in determining production, distribution, prices, quality etc.
Mixed economy helps in reducing income inequality in people & exploitation
of labor force in any form.
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