Table of Content
- Meaning
- Types of entrepreneurship
- Characteristics
- Importance
🌏Concept of Entrepreneurship
Entrepreneurship is the ability and readiness to develop, organize and run a business enterprise, along with any of its uncertainties in order to make a profit. The most prominent example of entrepreneurship is the starting of new businesses.
In economics, entrepreneurship connected with land, labour, natural resources and capital can generate a profit. The entrepreneurial vision is defined by discovery and risk-taking and is an indispensable part of a nation’s capacity to succeed in an ever-changing and more competitive global marketplace.
🌍Meaning of Entrepreneur
The entrepreneur is defined as someone who has the ability and desire to establish, administer and succeed in a startup venture along with risk entitled to it, to make profits. The best example of entrepreneurship is the starting of a new business venture. The entrepreneurs are often known as a source of new ideas or innovators, and bring new ideas in the market by replacing old with a new invention. It can be classified into small or home business to multinational companies. In economics, the profits that an entrepreneur makes is with a combination of land, natural resources, labour and capital. In a nutshell, anyone who has the will and determination to start a new company and deals with all the risks that go with it can become an Entrepreneur. Also Refer:
Top 8 Difference Between Businessman and Entrepreneur
🌍Businessman and Entrepreneur
It is a common assumption that businessman and entrepreneur are the same, but both words refer to a different individual possessing a distinct approach to business. to put is in other words, a businessman follows a set path engraved by some other person with an unoriginal idea, whereas an entrepreneur thinks and believes in making his own path with new ideas. In the future, an entrepreneur can become a businessman. However, between businessman and entrepreneur, there is a thin line difference businessman is a market player, whereas, the entrepreneur is a market leader. In the below article, we will help you understand the differences between businessman and entrepreneur.🌍Who is a Businessman?
A businessman is an individual who operates or starts a business with the same old business idea. The businessman chooses to do business that is high in demand or give him maximum profits in return. The firm faces stiff competition because many companies already exist in the market having the same business ideas. However, the risk factor is very less as the concept has been tried and tested by other existing companies, so the chance of failure is low.🌍Who is an Entrepreneur?
An entrepreneur is an individual who has an exclusive idea to initiate and establish a new venture and bring a change in the world. An entrepreneur is highly creative and innovative, takes a risk and endures the unpredictability of business. The business started by entrepreneurs with a new concept for the first time is known as Start-up. The entrepreneur is an integral part of the operation, who builds and deploys the other functions of the operations i.e. labour, land, and capital. Later in the future, the entrepreneur becomes a businessman. Additional Reading. This article is ready to reckoner for all the students to learn the difference between Businessman and Entrepreneur and on the contrary, there are similarities between businessman and entrepreneur. Now, let us focus on Businessman vs Entrepreneur.| Businessman | Entrepreneur |
| Definition |
| A businessman is an individual who operates or starts a business with the same old business idea. | An entrepreneur is an individual with an exclusive idea to initiate and establish a new venture |
| Market state |
| Market player | Market leader |
| Market |
|
| Makes his place in the market | Creates a market |
| Risk factor |
| Less | Approximately high |
| Procedure |
| Traditional/Ordinary | Unconventional |
| Focus |
| Profit | Employee, customer, and public |
| Competition |
| Extremely High | Low |
Top Differences in Commerce:- Cost accounting and financial accounting
- What is asset and liability
- What is trial balance and balance shit
- Fixed asset and current asset
- What is fixed cost and variable cost
|
🌍What are the 4 Types of Entrepreneurship?
It is classified into the following types: Small Business Entrepreneurship-These businesses are a hairdresser, grocery store, travel agent, consultant, carpenter, plumber, electrician, etc. These people run or own their own business and hire family members or local employee. For them, the profit would be able to feed their family and not making 100 million business or taking over an industry. They fund their business by taking small business loans or loans from friends and family. Scalable Startup Entrepreneurship-This start-up entrepreneur starts a business knowing that their vision can change the world. They attract investors who think and encourage people who think out of the box. The research focuses on a scalable business and experimental models, so, they hire the best and the brightest employees. They require more venture capital to fuel and back their project or business. Large Company Entrepreneurship-These huge companies have defined life-cycle. Most of these companies grow and sustain by offering new and innovative products that revolve around their main products. The change in technology, customer preferences, new competition, etc., build pressure for large companies to create an innovative product and sell it to the new set of customers in the new market. To cope with the rapid technological changes, the existing organizations either buy innovation enterprises or attempt to construct the product internally. Social Entrepreneurship-This type of entrepreneurship focuses on producing product and services that resolve social needs and problems. Their only motto and goal is to work for society and not make any profits.
Most often, the types of entrepreneurship are broken into four categories:
- small business
- scalable startups
- large company or intrapreneurship
- social entrepreneurship.
1. Small Business The Small Business Association (SBA) says that more than 99% of all the globe businesses are considered small businesses, and a majority of them are entrepreneurial ventures. These could be anything from a restaurant to a retail store to a service provider that is local. They typically don’t have any intention of becoming a chain or franchise. These are the pizza places, dry cleaners, daycares, and self-employed individuals. Most small business entrepreneurs use their own money to get things started and only make money if they are successful in their venture.
2. Scalable Startups A scalable startup attempts to grow quickly and become a profitable company. While less common than small businesses, these startups have a tendency to gain a lot of attention when they become successful. They typically start in an attic, a garage, a dorm room, or study room on campus, as an idea that’s being tossed around. These small scale concepts end up gaining investors which allow them to grow and scale up. This is what most folks think of when they hear “startup” or “entrepreneur” and get visions of Silicon Valley tech companies.
3. Intrapreneurship Think of a company like Alphabet (Google) which owns several other companies, but has also started a few of their own. There are times when entrepreneurs work within a larger company as an employee, but see potential to spin off new products or services that take on a life of their own. These intrapreneurs utilize an entrepreneurial mindset to employ the resources their current employer has available to them. Thinking outside the box, they continue to solve potential problems for current and future customers. This model allows entrepreneurs the opportunity to hit the ground running thanks to support from a larger backer.
4. Social Entrepreneurship Human created issues sometimes call for innovative community-based solutions. Social entrepreneurs seek to create a positive change with their actions. By launching an initiative or non-profit organization, whose primary purpose is to help people and not make money, these individuals strive to be the change they want to see in the world. Some topics these organizations focus on include racial justice, environmental conservation, or serving underserved communities in one way or another. So no matter what type of entrepreneurship you feel is right for you, the CFE is here to help.
🌍Characteristics of Entrepreneurship:
Not all entrepreneurs are successful; there are definite characteristics that make entrepreneurship successful. A few of them are mentioned below:
- Ability to take a risk- Starting any new venture involves a considerable amount of failure risk. Therefore, an entrepreneur needs to be courageous and able to evaluate and take risks, which is an essential part of being an entrepreneur.
- Innovation- It should be highly innovative to generate new ideas, start a company and earn profits out of it. Change can be the launching of a new product that is new to the market or a process that does the same thing but in a more efficient and economical way.
- Visionary and Leadership quality- To be successful, the entrepreneur should have a clear vision of his new venture. However, to turn the idea into reality, a lot of resources and employees are required. Here, leadership quality is paramount because leaders impart and guide their employees towards the right path of success.
- Open-Minded- In a business, every circumstance can be an opportunity and used for the benefit of a company. For example, Paytm recognized the gravity of demonetization and acknowledged the need for online transactions would be more, so it utilized the situation and expanded massively during this time.
- Flexible- An entrepreneur should be flexible and open to change according to the situation. To be on the top, a businessperson should be equipped to embrace change in a product and service, as and when needed.
- Know your Product-A company owner should know the product offerings and also be aware of the latest trend in the market. It is essential to know if the available product or service meets the demands of the current market, or whether it is time to tweak it a little. Being able to be accountable and then alter as needed is a vital part of entrepreneurship.
🌍Importance of Entrepreneurship:
- Creation of Employment- Entrepreneurship generates employment. It provides an entry-level job, required for gaining experience and training for unskilled workers.
- Innovation- It is the hub of innovation that provides new product ventures, market, technology and quality of goods, etc., and increase the standard of living of people.
- Impact on Society and Community Development- A society becomes greater if the employment base is large and diversified. It brings about changes in society and promotes facilities like higher expenditure on education, better sanitation, fewer slums, a higher level of homeownership. Therefore, entrepreneurship assists the organization towards a more stable and high quality of community life.
- Increase Standard of Living- Entrepreneurship helps to improve the standard of living of a person by increasing the income. The standard of living means, increase in the consumption of various goods and services by a household for a particular period.
- Supports research and development- New products and services need to be researched and tested before launching in the market. Therefore, an entrepreneur also dispenses finance for research and development with research institutions and universities. This promotes research, general construction, and development in the economy.
🌍How to Develop Entrepreneurial Skills
Here are some ways to develop your entrepreneurship skills:
- Define goals: Establish your business objectives, strengths, weaknesses, and what you want to achieve
- Learn: Podcasts, books, and seminars can be great sources of information to enhance your skills
- Take online courses: Online courses are an excellent way to boost the skills you want to develop
- Look for a mentor: Mentorship can make a significant impact on your life and career; seek mentorship from successful leaders to enhance your skills
- Work hard: Develop a strong work ethic and be consistent in your efforts to grow
- Be adaptable: Stay open to change and embrace new ideas and opportunities as they arise
- Foster a growth mindset: Focus on continuous learning and seek out new opportunities to develop your skills
🌍Examples of Entrepreneurial Skills
Here are a few examples of entrepreneurial skills:
- Mentorship
- Reliability
- Responsibility
- Strategic thinking
- Delegation
- Risk-taking
- Empathy
- Networking
- Creativity
- Innovation
- Problem-solving
- Flexibility
- Conflict resolution
- Financial skills
- Customer service
🌍Is Entrepreneurship a Good Career Choice?
Entrepreneurship involves risks, hard work, long hours, and even work without benefits such as stability, salary, and health insurance. However, it can be a rewarding career for those who are passionate about bringing their ideas to life despite the uncertainty and risks involved. Entrepreneurship provides you with the opportunity and freedom to work independently, make your own decisions, set your schedule, and achieve a sense of fulfillment in pursuing your passion. In addition, entrepreneurs can achieve immense financial success. As an entrepreneur, you can also contribute to society and make a significant impact on the life of others by creating jobs, products, and services that improve the quality of life for many.
