Entrepreneur: Meaning, Traits, and Role in Economy

The term Entrepreneur refers to businessmen and the term entrepreneurship refers to a process. When a businessman converts his ideas into a successful company, the process is called entrepreneurship. His hard work, his risk, how he runs the business, and then converts it into a successful enterprise- all come under this umbrella term of entrepreneurship. According to Professor Parekh and Manohar Nadkarni “entrepreneurship refers to the general trend of setting up new enterprises in a society”. According to Professor Roy and Mehta “can be described as a creative and innovative response to the environment”.

Importance of Entrepreneurship

i. Basis of Economic Development of the Country- Development of any country depends on entrepreneurship, it depends on the businessmen of a country, how successful or not the country is. The more the businessmen in a country understand these simple words, the more successful the business will be, the more the country will develop. That's why a successful business shows how developed the country is.

ii. It Helps in Establishing New Enterprises- Entrepreneurship also motivates others, so that others can start their own business or their new enterprises. For example, if you are a successful businessman, then you can also help others to become successful through your experience and they are motivated to start a business.

iii. Contribution in Development and Expansion of Existing Enterprises- Today's entrepreneurs help old businessmen to expand their business. The old businessmen who do not know about today's system, tell them to expand their business, because of which the country's economic system is good.

iv. Helps in Developing New Products and Techniques-  With the help of businessmen, new products come in the market, new technology will not come in the market until they invent by their production, and the consumer will not get to use anything new. So it is only because of the businessmen that we are able to use new products today.

v. Opportunity to Get Full Human Potential- Whenever a business starts, whatever people work there, this businessman ensures that the people who are working in his company give their hundred percent. He wants his workers to give their hundred percent and they also have the skills to get their work done completely by the workers as they also motivate them.

vi. Creation of Employment Opportunity- The more businesses, and enterprises will be successful, the more profitable companies will become, and the more employment they can provide. The larger the company or enterprises, the more will be the requirement of workers. In order to produce resources, to handle staff, all these things will be fulfilled by hiring employees. This, in turn, creates new employment opportunities.

vii. Promotes Capital Formation- When the business earns a good profit, it earns a lot of money, then the money will go to the government through tax. When the company will earn a good profit, then people will get a lot of money in the form of salary, then somewhere through the income of the employers, the money will go to the government, in this way the government is getting tax from the individual people also. Tax is also being received from the company, due to which the economy of the country will be good, in this way the benefit of everyone is through the enterprises.

viii. Balances Economic Development- Both the urban sector and the rural sector will be balanced economically due to entrepreneurship. It means that enterprises help in reducing the gap between the rich and the poor. Entrepreneurs start the business by going to the rural sectors, they provide jobs to the people of the rural areas and help in the development of that area.

ix. Helps in the Execution of Government Policies and Plans- Entrepreneurship helps the government as well. The government creates new rules and helps entrepreneurs in promoting those rules and regulations. For example, businessmen follow the GST rules imposed, and in a way, they are promoting it. Entrepreneurship helps in implementing government planning and rules in this way.

x. Helps in Social Change- The more entrepreneurship will be successful, the more it will help to develop the society, the more donations will be made, the standard of living will improve and employment opportunities will also increase when entrepreneurship is at a good level.

Process of Entrepreneurship

i. Self-Discovering- The first step of entrepreneurship is only through self-discovering, it is most important to identify your strengths and your weaknesses. With self-discovering, a person identifies what he is good at, what business he should start, and on which path he will succeed in the future. When you plan to start a business, you must study the profiles of those who are successful in that field of business. If it connects with your calling, take tips from their success stories, and start your own business.

ii. Identifying Opportunity - Now you know your strength, now you have to find out where you will be getting the opportunity. For example, you will have to assess the trends of demand and supply in the near future. If you are interested in something that has significant imports in the future, it is going to grow a lot and there are very few people who can supply it, then you can earn a lot of profit by investing your efforts, money and time in that business, and you are likely to be very successful.

iii. Generating and Evaluating Ideas- In this step, whatever opportunity you have identified, you will have to generate ideas like how to do it, what to do, how to start it, and so on. After that, if you have thought of 10 options, now you will decide which two or three ideas are right, and choose the best from among them. This is called evolving ideas.

iv. Planning- Now comes the time to do the planning, to make strategies, and to do the research. Now that an idea has been identified by you, it is required to implement that idea and plan. In this, you become specific about what the necessary plan of action is, and proceed with the same. 

v. Raising Startup Capital- If you have the funds for investing in your business, you may opt to begin a startup, but if you do not have funds, you will need to raise capital investment. You can raise the capital with the help of investors or any sponsorships.

vi. Startup - In this step, you will start your final startup, after designing the plan of action and other strategies.

vii. Growth - After starting the business, it is your responsibility to make your business grow. You can expand your business by hiring skilled employees, implementing creative ideas, enhancing the marketing strategies, raising more funds, utilizing the profits in buying new machinery, etc.