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Concepts and Characteristics of Entrepreneurship

Last updated date: 22nd May 2024
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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

  1. 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.

  2. 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.

  3. 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:

  1. Ambition and Self Confidence

  2. Willingness to take a leap of faith

  3. Ability to learn from mistakes

  4. 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 –

  1. Self confidence

  2. Risk taking ability

  3. Decision making ability

  4. Competitive 

  5. Intelligent

  6. Visualization

  7. Emotional Tolerance

  8. 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 does a business tycoon mean?

A business person who possesses a lot of wealth, power, magnet to attract fame and money is called a business tycoon. He is a great person of influence, who has created his own power and fame while building his own empire.

2. Are entrepreneurs inborn?

This is illogical to think an entrepreneur can be ‘born entrepreneur’. He definitely struggled to make this happen. Entrepreneurs are bred not born. Characteristics and features get possessed in an individual not by family genes but by the environment where they were trained, where they learned mistakes and gain experience is from where one inculcates the characteristics.   

3. What is the one thing that is sure to be possessed by an entrepreneur?

All the features are very important to form an entrepreneur but above all an entrepreneur must possess an undying passion about his work. He should be darn to achieve his goals, and this is the one thing that is must in an entrepreneur as this characteristic will pull all other characters like hard work.

4. How can entrepreneurial skills be developed?

In India, finally entrepreneurship was given an eye on its importance and need. Thus, in the budding stage itself, the schools and colleges included ‘Entrepreneurship Development” as a subject in their study. Further there are now many institutes that teach the entrepreneurs soft skills.