Introduction to Entrepreneurship
Entrepreneurship studying is a recent trend in the career that has been initiated by the Government itself owing to the importance of this element in an economy. Today we study about ‘Entrepreneurship’ to know its character, instilled behavioral pattern, wants and wishes, their growing strategy and their action in building their empire in industries. In Entrepreneurship, the students are enlightened about the practicality of to-day’s business ideas, a modern lifestyle adopted by an entrepreneur in regard to taking risk and responsibility of the business.
What is Entrepreneurship? What are its Characteristics? Is the main base of our discussion in this content.
Concept of Entrepreneurship
Entrepreneurship can be defined as the creation or the acquiring of value. Entrepreneurship can also be viewed as “change” which includes other values other than simply economic ones.
The constricted definitions of Entrepreneurship talks about the process of designing, launching, and running a new business that actually starts as a small business. Entrepreneurship can also be defined as – the capacity and the willingness to develop, organize and to manage a business.
The people who start and create a business with a new model, in a view to solve a societal problem they are referred to as entrepreneurs. The discussed definitions of entrepreneurship specifically focus on the launching and taking over the business with high risks involved in launching.
Characteristics of Entrepreneurship
Digging deeper in the definition of Entrepreneurship, leads us to the characteristics of Entrepreneurship which means an Entrepreneur can be identified with definite sets of characters built in him/her.
First, to talk about this inbuilt character, an Entrepreneur should be Creative. He should take the initiation of innovating something which is out of the box.
Next, his lifestyle should be filled with Professionalism, an Entrepreneurs manners and behavior with his fellow team mates or employees should be of a quality, they should possess the touch of professionalism in their attitude. This also leads to self-discipline, which will encourage the entrepreneurs to achieve their high goals.
Risk Taking, this is an important character which is must for an entrepreneur to develop within himself. This character comes, when he gets the self-confidence triggering in himself. A good entrepreneur will always take risks in ventures after methodically analyzing them.
Features of Entrepreneurship
All the success not always happens to every individual who dreams to be an entrepreneur. They fail in the journey to be an entrepreneur due to lack of entrepreneurial features in him. Entrepreneurial features are a must to be a successful entrepreneur.
Important Features That Distinct An Entrepreneur Are As Follows
Tenacity – In simple words tenacity means the power of ‘not giving up’. An entrepreneur with his new business model may fall a thousand times, but these mere failures do not block their vision to check what is missing and why they fail, they work on it even a thousand times and then successfully pitch his brand-new business model in the industry. They do not take ‘no’ as an answer. They work incessantly until they achieve their goal.
Passion – Passion is often regarded as a driving force. An entrepreneur is ever passionate about his dream. It is not just the passion of mere making of money, but is a passion of solving a societal problem with their business idea and model. Without a high degree of passion, it is not possible to stay motivated.
Risk Taking – Entrepreneurs are never hesitant to take risk, this does not mean they are reckless, rather they analyse method studying in their investment before they take a risk. ‘High risk cultivates higher profit’ this is the mantra that an entrepreneur always follows.
List any Four Characteristics of Entrepreneurship
Famous entrepreneurs discuss about four key characteristics that entrepreneurs possess:
Ambition and Self Confidence
Willingness to take a leap of faith
Ability to learn from mistakes
Trust in and respect for the team
Ambition – An entrepreneur is highly ambitious. They see a problem and then they engage in an activity to solve the problem, this mental state is never changing in them.
Faith – That faith in self that the problem is worth solving and he has been placed right to solve it is the enormous leap of faith. It is the confidence about his own work.
Learning from Mistakes – Entrepreneurs do not repent and wail over mistakes or the times when they fail, rather than the mistakes as they analyze their mistakes and see what was missing. They gather the understanding of their mistake, where they lacked and again start their work not from the scratch but now from a lot of experience.
Work Together – Entrepreneurs work in a team. They make the team and lead it. He takes mutual help and harmoniously works in the team, they beautifully collaborate the team and destine them to work for his own idea.
Characteristics of Entrepreneurship Development
To run a business successfully, an entrepreneur needs to develop certain characters in them. Certain traits that must be developed and always polish in themselves are as follows –
Self confidence
Risk taking ability
Decision making ability
Competitive
Intelligent
Visualization
Emotional Tolerance
Patience
Thus, these were the concepts and characteristics of an entrepreneur that we learn in this discussion.
FAQs on Concepts and Characteristics of Entrepreneurship
1. What is the core concept of entrepreneurship as per the CBSE syllabus?
Entrepreneurship is the dynamic process of designing, launching, and running a new business, which typically begins as a small business. It involves a willingness to develop, organise, and manage a business venture along with any of its risks to make a profit. At its core, it is about identifying a need or problem in the market and creating a solution in the form of a new product, service, or business model.
2. What are the key characteristics that define a successful entrepreneur?
A successful entrepreneur typically exhibits several key characteristics. These include:
- Innovation and Creativity: The ability to come up with new ideas and unique solutions.
- Risk-Taking: The courage to commit resources to ventures with uncertain outcomes, after careful calculation.
- Leadership: The skill to build and guide a team towards a common goal.
- Persistence and Tenacity: The determination to overcome obstacles and not give up in the face of failure.
- Passion: An intense enthusiasm and drive for their work, which goes beyond just making money.
- Decision-Making Ability: The capacity to make timely and effective decisions under pressure.
3. Why is entrepreneurship considered crucial for the economic development of a nation like India?
Entrepreneurship is vital for economic development because it acts as a powerful engine for growth. Entrepreneurs create new businesses, which leads to job creation and reduces unemployment. They introduce innovation, leading to new products and services that can improve living standards and open up new markets. Furthermore, by starting new ventures, they contribute to the nation's Gross Domestic Product (GDP) and foster a culture of competition and efficiency in the economy.
4. How does an entrepreneur differ from a manager in a business?
The primary difference lies in their fundamental roles and motivations. An entrepreneur is an owner and a risk-bearer who conceives the business idea and brings the venture into existence. Their main motive is to innovate and start a venture. A manager, on the other hand, is an employee who runs the operations of an already established business. Their focus is on planning, organising, and controlling resources to achieve the goals set by the entrepreneur. While an entrepreneur is a visionary, a manager is an implementer.
5. What are the primary functions an entrepreneur performs in a business venture?
An entrepreneur performs several critical functions to build and sustain a business. Key functions include idea generation and innovation, where they identify new opportunities. They are also responsible for risk assessment and management, deciding which calculated risks are worth taking. Other crucial functions are mobilising resources (like capital, labour, and materials) and handling the overall organisation and management of the enterprise to ensure smooth operations and growth.
6. Is it true that all entrepreneurs are born with their skills, or can these abilities be acquired?
The idea that entrepreneurs are "born" is a common myth. While certain personality traits might be helpful, entrepreneurship is fundamentally a set of skills and a mindset that can be learned, developed, and cultivated. Skills like financial management, marketing, leadership, and strategic planning can be acquired through education, training, mentorship, and practical experience. Success often comes from learning from failures and continuously adapting, which are behaviours that can be developed over time.
7. How is the 'risk-taking' characteristic of an entrepreneur different from simple gambling?
The key difference is that entrepreneurial risk-taking is calculated and managed, whereas gambling is based purely on chance with little to no control over the outcome. An entrepreneur thoroughly researches the market, analyses potential threats, and develops strategies to mitigate foreseeable risks before investing resources. They take 'moderate' or 'calculated' risks where their skills can influence the result. A gambler, in contrast, takes a blind leap of faith with no strategy to influence the outcome.
8. Does entrepreneurship always mean starting a large, technology-based company? Explain with examples.
No, entrepreneurship is not limited to large-scale, tech-driven startups. It encompasses any new venture that introduces value, regardless of its size or industry. For example, opening a unique local café that uses locally sourced ingredients, starting a small-scale handicraft business that employs local artisans, or launching a tutoring service with a new teaching methodology are all valid entrepreneurial activities. The core element is innovation and value creation, not the scale of the operation.
9. Explain the role of 'innovation' and 'creativity' in entrepreneurship.
Innovation and creativity are the lifeblood of entrepreneurship. Creativity is the ability to generate new and unique ideas, while innovation is the practical application of those ideas into a new product, service, or process that creates value for customers. For an entrepreneur, creativity might lead to a novel business concept, but innovation is what turns that concept into a marketable and profitable reality. For instance, the idea of a taxi-hailing app was creative; building the functional app and business model (like Uber or Ola) was innovation.
