Entrepreneurship & Entrepreneur

Concepts, Characteristics, & Economics


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.


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.


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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