An entrepreneur refers to the person who creates a new enterprise. Entrepreneurship is the process of creating a new enterprise with an aim of making a profit. An enterprise refers to the business venture which is being created by the entrepreneur.
Entrepreneurship means the process of undertaking a new enterprise and running it, so as to make a product, having value for people by giving necessary time and effort, and bearing all the financial risks, difficulties and challenges, to make a profit. It is the process of seeking investment and production opportunities starting and managing a new business venture, to carry out the process of production, raising funds and arranging inputs such as land, labour, material etc. and introducing new techniques of production while taking all the risks and facing challenges to ensure the survival and growth of the enterprise.
An entrepreneur is an individual who creates a new enterprise while bearing all the risk and embracing all the challenges for its development and operations to make a profit. He/She must be a person with:
- An innovative and unique idea,
- Who can turn that idea into reality?
- Arranges all the resources
- Ready to bear all risks
- Takes all necessary decisions
- Provide products and services that value to the customer
The profit acts as the motivation to the entrepreneur further the undertaking created by the entrepreneur is typically a startup company called as an enterprise. Qualities of an entrepreneur are:
A high degree of commitment
High energy level
Desire for responsibility
Leadership or managerial skills
Value for achievement over money
Open-mindedness and optimism
The characteristics of entrepreneurship
- Economic activity: It involves commencement and operation of business enterprise for commercial purposes
- Innovation: It involves creative thinking and conceiving new ideas.
- Risk: Risk and uncertainty are the inherent characteristics of the business.
- Profit: Primary objective of the business and it is the reward for the effort and risk beared
- Teamwork: Teamwork plays a crucial role as it is the collaborative effort of the group to attain a common goal.