In the present times, entrepreneurial development has managed to acquire much importance, primarily for its contribution to the economy of a nation. The objectives associated with varied notions starting from industrial expansion to employment generation and regional growth, all depends upon entrepreneurship.
In order to have a clear comprehension of entrepreneurship and its facets homework, we need to conduct a thorough research.
The term â€˜entrepreneurâ€™ is derived from â€˜entreprendreâ€™, a French word meaning â€˜to undertakeâ€™. This specific designation can be attributed to those individuals, who are ready to â€˜undertakeâ€™ all the risks related to the establishment and functioning of new enterprises. Entrepreneurship could be loosely defined as a process of identifying and exploiting innovative ideas, in order to achieve profitable opportunities.
Entrepreneurship has diverse characteristics and they are mentioned below in brief:
- Is referred to as an economic activity as entrepreneurship is all about creating and running an organization by optimally utilizing the scarce resources so that maximum wealth or value can be earned. Since this is an incessant procedure, which goes through alterations from time to time, entrepreneurship could be viewed as a dynamic force too.
- Entrepreneurship is a continuous hunt for new ideas. It requires a proficient individual, who would dedicatedly assess the prevailing business strategies so that more effective and efficient systems could be fabricated and implemented. In other words, it is a conscious effort to optimize performances for prosperity.
- Earning profits is the primary goal of entrepreneur. Without financial gains, his efforts would be a mere leisure activity. Profit potential can be defined as the probable level of compensation given to a business owner for taking risks as well as facing challenges and ultimately materializing an ideal into a tangible business venture.
- Research has effectually shown that new ideas are may not always generate desirable outcomes. The very essence of entrepreneurship and its facets homework lies in an individualâ€™s utmost willingness and capability of taking risks, which arises out of the construction and implementation of unique notions. An entrepreneur needs to exhibit much patience so that his effort produces optimal outcomes.
The entrepreneurial process is an extensive one, which can be divided into two categories. Those are described below in details:
- Idea Generation
This particular phase can be divided into three steps and they are:
- Germination- Creative ideas may sprout out from nowhere or may be linked to a personâ€™s interests.
- Preparation- Once the idea is generated, an entrepreneur and his professional team start preparing tactics so that the ideas can be offered definite shape.
- Incubation- Here all the tangible strategies are amalgamated with sub-conscious intellectualization so that proper resolution can be found.
- Feasible Study
This process mainly views whether the idea germinated, prepared and incubated in the previous phase is commercially viable or not. It can be divided into two steps:
- Illumination- The idea is offered realistic meaning.
- Verification- The idea is verified so that it can have practical applications.
- The chief benefit of entrepreneurship and its facets homework is that it helps to detect and develop managerial abilities. An entrepreneur is skillful enough to study an issue, recognize the alternatives, and compare the techniques in terms of price as well as benefits. The entire exercise quite successfully sharpens the decision-making ability. Besides new technologies are innovated for enhancing the performance levels.
- Entrepreneurship leads to the creation of organizations, where talented individuals assemble and synchronize varied resources- (physical and financial) so that high profits could be earned and objectives can be accomplished.
- By fabricating productive organizations, entrepreneurship leads to the manufacture of a wide-range of goods as well as services so that the common masses can achieve higher standards of living. For example, luxury cars, growth of shopping malls, smartphones are all significant pointers indicating the rising standards of living and all this has been possible due to an entrepreneurâ€™s efforts.
- Entrepreneurship and its facets homework lead to the creation as well as utilization of varied exclusive ideas, maximization of the outputs, and progress of the organization skills, which in turn contributes to economic development.
Entrepreneurship is a complex interplay of a wide variety of factors and they are as follows:
- Personality- initiative, proactive, perseverance, problem-solving, persuasion, self-confidence, self-criticism, planning, risk-taking.
- Environmental- political climate, economic situations, legal system, social conditions, circumstances of the market, etc.
- Innovative Entrepreneurs have capability of fabricating new and better economic ideas, which lead to prosperity of a nation.
- Imitating Entrepreneurs emulate the environment in which their organization is functioning and create strategies accordingly.
- Fabian Entrepreneurs are those individuals, who do not initiate the implementation of new ideas. They wait for the necessary motivation or initiate only where there is a forthcoming danger.
- Drone Entrepreneurs are professionals, who are much satisfied with the existing business modes and sales. In other words, they are conservatives, who would not embrace changes in any case.
After going through some of the fundamentals of entrepreneurship and its facets homework as mentioned in the aforementioned discussion, it could be fairly concluded that an entrepreneurâ€™s life is completely devoted to his business organization.