We usually hear people saying that so and so is an entrepreneur and has started his own business. In this case, we understand the word entrepreneur, a person who has begun this own ventures. So, the process of starting a company or a firm for social need or profit is known as Entrepreneurship.
Let’s understand in detail what is entrepreneurship?
Entrepreneurship Meaning
Entrepreneurship is defined as a process of forming a new business and bear risks, to make a financial gain. It is an act of making investments, developing, managing, and creating production opportunities.
In economics, entrepreneurship is determined as a combination of labor, land, natural resources, and capital that can generate a profit. Innovation and risk-taking are a vital part of entrepreneurship and can compete in the global market and enhance the country’s economy.
Characteristics of Entrepreneurship
- Economic Activity – It is known as economic activity, as it includes launching, designing, and operating a new business. It ensures the best use of resources to make a profit.
- Creativity and innovation – In this process, it involves creating new concepts and executing them in business. It evaluates the operating system regularly to identify new methods and techniques for running the company more effectively and efficiently.
- Make Profit – The sole aim of entrepreneurship is to make a profit.
- Risk-Taking – Risk is an essential feature of entrepreneurship without which the entrepreneur cannot succeed. Establishing a new venture is the invention and implementation of innovative ideas. So the result is uncertain and may or may not be positive.
Skills Required in Entrepreneurship
- Technical Skills – They should have the ability to create and analyze the business operation, build a network, capacity to spot new trends, active listener, and interpersonal skills.
- Business Management Skills – Should be able to forecast, plan, plan a budget, quick decision-maker, goal setter, manage finance and marketing, etc.
- Personal Skills –Ability to incorporate changes, self-reliance, leadership, innovator, discipline, risk-taker, patience, self-confidence, intelligence, honesty, and emotional stability, etc.
To know the difference between management and entrepreneurshipand other difference between concepts, stay tuned to BYJU’S.