A background of entrepreneurship is an entrepreneur. An entrepreneur is “one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods’ ‘. This may result in new organizations or maybe part of revitalizing mature organizations in response to a perceived opportunity. The most obvious form of entrepreneurship is that of starting new businesses (referred to as a startup company); however, in recent years, the term has been extended to include social and political forms of entrepreneurial activity.
Introduction to Entrepreneurship:
When entrepreneurship is describing activities within a firm or existing organization, it is referred to as intrapreneurship which includes innovation and new product development.
An entrepreneur is a person ([man]/woman) who starts and manages any kind of business, but usually one that is high risk or potentially high return. Entrepreneurs take financial risks in the hopes that their ventures will yield a high enough financial return on investment to ensure their continued operations and provide a profit for themselves, and possibly others (e.g., investors or stakeholders). Many entrepreneurial endeavours start out as a small businesses, such as a restaurant or new boutiques.
Pros and cons of being an entrepreneur:
Pros:
- Flexibility in work schedule
- The feeling of being your own boss
- Having multiple sources of income
Cons:
- Unstable job security
- Not guaranteed success even after all the hard work put in
- “There are lots of people who do not understand what entrepreneurs are trying to do, who want to take them down”
- Having to deal with a large amount of stress
Prevalence of entrepreneurship:
Entrepreneurship has been linked to higher economic growth in several quantitative studies. The academic study of entrepreneurship reaches back to the work of Richard Cantillon and Adam Smith in the late 17th and early 18th centuries, although entrepreneurship was largely ignored theoretically until the late 19th and early 20th centuries.
How to become an entrepreneur?
The following points answer this question to become an entrepreneur:
- Having business ideas
- Learning the relevant skills (marketing, finance, management etc.)
- Finding money or support through initial investors (friends or family)
- Create a prototype of your product idea to show to potential customers
- Taking risks and having the courage
Also Read: 32 Best Small businesses to invest in 2022
Applications of entrepreneurship:
New businesses, startups, and social entrepreneurship are all forms of entrepreneurship. Other examples of entrepreneurial endeavours could include opening a coffee shop, starting an online magazine or blog, forming a band (done by Justin Bieber) etc.
Key steps in taking action:
- Identify your skills & interests
- Find potential business ideas that match your skills and interests
- Perform preliminary investigations (e.g., finding out about competitors, visiting potential customers etc.)
- Set up a business plan showing how you could make the business work
- Find initial money/support (a business plan is a good way to do this)
- Launch your business and test it in the real world
- Keep updating your business plan as you learn more about the reality of running a new venture (adapting your idea as new information becomes available)
- When you have reached success and profitability, found investors and share the rewards with them.
Challenges faced by entrepreneurs:
-High rate of business failure
-Finding initial investors for funding
-Innovation in the face of competition from established businesses
-Dealing with risk-taking and high debt levels, especially during start-up phase
-Keeping focused on goals when confronted with problems (loss of job, illness etc.) or stress (e.g., accompanying a spouse in the hospital)
-Being away from family and friends as you travel around meeting customers, investors etc.
In Detail:
An entrepreneur is someone who has the drive and motivation to take an idea and make it into a profitable business. Entrepreneurship can be risky, but it’s also rewarding when your business takes off. There are many resources that can be used to help you become an entrepreneur, including the Young Entrepreneurs Program at SCORE.
You have just found out about a new business opportunity that looks promising and profitable. However, this is all the information you know about the business. What do you do next? You should first identify your skills and interests. Do you have traits that would make you a good entrepreneur? You want to choose an idea that matches your skills and interests.
Next, you should perform preliminary investigations into the business idea by looking up any information about competitors or visiting potential customers. This information can help guide your decision on whether the business is worth pursuing.
If it looks like your business might be profitable, then you should create a business plan. A business plan is basically a roadmap that guides the business’s progress. Your business plan can later be used to secure initial funding for the business if it looks promising enough.
Your next step after creating the business plan is to find some initial money or support for the business. The money you use to start the business can come from friends or family members, if possible.
After setting up the business, take it out into the real world and test it in the market. Keep updating your original business plan with new information as you learn about how well your venture is doing. When you have reached success and profitability, you can find investors. And when your business is profitable, you can share the rewards with them.
Conclusion:
We hope the above information was useful and informative. A good business idea has many factors to consider, including matching your skills and interests, performing preliminary investigations into the business idea, creating a business plan that you can update along the way, securing initial funding, taking it out into the real world and testing it in the market.
So try yourself in the real world!