Understanding The Basic Concept Of Entrepreneurship In Business
The word “entrepreneurship” is used to describe the creative, innovative, and risk-taking and organisational process and functions of individuals who initiate, run and nurture a business venture. In this article, I want to talk about all that you need to know about the basic concept of Entrepreneurship.
The ultimate aim of such an individual is to receive the reward of resultant profit, independence, personal achievement and fame. However, there are risks which the venture of the entrepreneur must take.
These are business or financial losses as well as social, psychological and health-related risks.
Entrepreneurship also involves a strong initiative-taking ability to start something new, venture into new areas to take advantage of opportunities, continuous innovations, commercialisation of new technology and a strong managerial process.
An example of an entrepreneur is Ingvar Kamprad, founder of IKEA, a multinational company that makes the first-class furniture. Others are Bill Gate, Warren Buffet, Carol Slim Helm, Aliko Dangote among others. These are individuals who achieved greatness through entrepreneurship.
There are many perspectives to the definition of entrepreneurship. Economists view entrepreneurship as the taking of risk in expectation of profit by combining factors of production or resources such as Land, labour and capital in a way that produced something new with greater value or utility for the satisfaction of human wants.
To a management scientist, entrepreneurship is a creative, innovative and strategic process of starting and also revitalising an organisation and continuous improvement of its products and services.
It involves perceiving business opportunity, using available resources efficiently and effectively to achieve the goals and objectives of an organisation.
To an accountant or financier, entrepreneurship is concerned with the activities of individuals with realistic business or investment ideas and is able to take advantage of investment opportunities that yield a high return on investment.
Majority of psychologists and sociologists see entrepreneurship as the activities of individuals with a high aspiration to achieve, seek financial and personal independence and wanting to create a new thing.
To a business person, entrepreneurship has to do with the process if a modern business, industrial leadership, aggressive competition among others with the aim of making financial gains by offering better products and services. Other may have a negative view.
To many others who dislike free enterprise such as communists, labour unionists, social activists among others, the entrepreneur is a rogue who expropriates profits, exploit society and destroys the natural environment.
Notwithstanding, the benefits of entrepreneurship largely outweigh any negative aspect. In all, these different views there are common components of entrepreneurship. These include:
Recognition of business opportunities.
Initiating ideas and action.
Using economic, managerial, social and technical mechanism in converting, improving and organising resources.
Innovation and creating something new and of value.
Risk-taking and tolerance for failure.
Entrepreneurship is a process of identifying opportunities, creating or improving new or existing technology, products and services, bearing the accompanying risk and receiving a resultant reward.
I know you might agree with some of the points that I have raised in this article. You might not agree with some of the issues raised. Let me know your views about the topic discussed. We will appreciate it if you can drop your comment. Thanks in anticipation.
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