Need for Entrepreneurship – Explanation
Entrepreneurship as a discipline does not have any real definition. Some scholars accept the study as business formation while others highlight it as an entrepreneurial opportunity that recognises dimension.
The definition of entrepreneurship is viewed as a change, this includes other values other than the economic ones. Narrower definitions of entrepreneurship are described as the process of designing, launching and running a new business.
Entrepreneurship and Management are closely related terms in business, there is a definite difference between both these processes. In this article, you will learn more about these two terms.
Entrepreneurship and Management Entrepreneur
Management talks about the span of organizational studies. Simply speaking, management explains each aspect of the organization which discusses the organization and coordinates the activities to achieve a destined set of objectives. Harold Koontz, the great scholar, highlighted management as the art which talks about how to achieve the things done by people. He also pointed out the importance of formal groups in this process.
Thus, the management discusses the overall organizational function which is to achieve the desired objectives. This also tells that the interconnection between management and entrepreneurship is a set because the entrepreneurship proceeds to the management level. In general, entrepreneurship features the business creation whose management is required to target the objectives of an entrepreneurial venture.
Entrepreneurship and its Scope
The scope of entrepreneurship is far-reaching.
Entrepreneurship moves even beyond the closed system of an enterprise.
Entrepreneurship in its capacity stimulates the economy which enables societal change not only for fulfilling a need but also to generate revenue for the entrepreneur, entrepreneurship thus provides jobs for the society and develops communities.
Entrepreneurship instigates a lot more than the mere creation of business.
Entrepreneurship promotes the new business and provides opportunities to improve the new business sectors.
In the long back, when washing machines were not invented, women had to spend their time washing clothes without energy resources or water resources. This once inspired a new company to sell low energy washing machines. This would save time which in turn utilised the extra time to educate themselves.
Need of Entrepreneurship
The need for entrepreneurship is detailed down in the following section:
Passion, Perseverance & Persistence
Passion is a strong and uncontrollable emotion that is based on something higher to achieve than what the person is carrying within himself. Perseverance is a mature emotion that comes through experiences gathered and analysed. While persistence is the sail that will row the boat of an entrepreneur through the toughest of climates.
Big Dreamer
Dreaming big further strengthens an entrepreneur with his ability to dream and see the wide picture. This is the very first step that sets the path to self-discovery.
Learning
Learning is never to stop irrespective of age and thus arming oneself with education does play a vital role in forming leadership qualities when needed.
Good Listener
The ability to contribute will only come once we have abundance in ourselves, and this comes by absorbing the words of others. The ability to truly listen to the customers and employees is actually what makes a difference. This very skill leads to a successful venture.
Financing Partner
Choosing a financing partner who understands the business needs is very much essential. This is as critical as choosing the business which the entrepreneur wants to pursue. Also, a business loan from the right lender will for sure play a pivotal role in realizing the dreams of becoming a successful entrepreneur.
Role of an Entrepreneur in the Process of Nation-Building
Entrepreneurs play a very important role in the process of nation-building, especially in a developing country like India. entrepreneurs start many entrepreneurial ventures which in turn hire many people thereby giving them employment, livelihood and vocational opportunities. These people earn money in the form of salaries, wages, stipends, etc. Also, entrepreneurs borrow money from banks, shareholders, investors, etc. who earn interest, dividends, profits, etc. All this money is indirectly used in the economic development of the nation. Thus entrepreneurs facilitate the economic development of the nations. And economic development is a very important component of nation-building.
Conclusion
After reading this article we understand the meaning of entrepreneurship, its scope, the various roles played by an entrepreneur and what are the needs of an entrepreneur. Apart from this, you will also learn about the crucial role entrepreneurs play in the process of nation-building and economic development.
Reading this article will help you get your basics clear on the topic and you can study advanced leveled concepts related to entrepreneurship in the future. Reading this article will help Class 11 and Class 12 students to come out with flying colors in their respective exams.
FAQs on Why Entrepreneurship Is Necessary for Economic Growth
1. What is the need of entrepreneurship?
Entrepreneurship is essential because it drives economic growth and creates job opportunities in society. Entrepreneurs identify gaps in the market, introduce innovative products or services, and enhance competition. As a result, they help stimulate productivity and improve living standards. The need for entrepreneurship also stems from its role in addressing social challenges and encouraging personal development. By fostering business creation and new ideas, entrepreneurship becomes a major force in shaping modern economies and adapting to changing environments.
2. What are the three types of needs in entrepreneurship?
Entrepreneurship involves different types of needs that support both the entrepreneur and the economy. These needs can be categorized into three main types:
- Economic needs: Creating businesses to reduce unemployment and increase a nation’s wealth.
- Social needs: Addressing community challenges by providing solutions, ethical practices, and social value.
- Personal needs: Fulfilling ambition, self-actualization, and financial independence for the entrepreneur.
3. Why do we need more entrepreneurs today?
In today’s fast-changing world, more entrepreneurs are needed to keep up with innovation and address global challenges. Modern economies face rapid technological change, job displacement, and pressing social or environmental problems. Entrepreneurs play a crucial role by:
- Developing new technologies and products for evolving needs.
- Creating jobs, especially in underserved or recession-hit regions.
- Finding creative solutions to social and environmental issues.
4. What do entrepreneurs need the most?
Entrepreneurs need a combination of resources, support, and personal qualities to succeed. While each venture is unique, some needs are universal:
- Access to capital: Funding is crucial for starting and scaling businesses.
- Relevant knowledge and skills: Business planning, management, and industry expertise help entrepreneurs navigate challenges.
- Support network: Mentorship, connections, and advisory services can guide key decisions.
5. How does entrepreneurship contribute to economic development?
Entrepreneurship contributes to economic development by fostering innovation, creating employment, and increasing competition within an economy. When entrepreneurs launch new businesses or introduce unique products, they stimulate demand and productivity. This, in turn, leads to greater investment, a broader tax base, and higher standards of living. In developing and developed nations alike, strong entrepreneurship activity helps economies adapt and thrive amid change, furthering sustained growth.
6. What challenges highlight the need for entrepreneurship?
Several modern challenges emphasize why entrepreneurship is vital today. Issues like high unemployment rates, rapid technological disruption, and environmental concerns all call for innovative thinkers. Entrepreneurs respond to these pressures by:
- Introducing new job opportunities and industries.
- Developing technologies to address emerging needs.
- Solving social and environmental problems with creative approaches.
7. In what ways can entrepreneurship solve social problems?
Entrepreneurship can directly address social problems by developing solutions that benefit both business and society. Social entrepreneurs focus on challenges like poverty, education, or health by creating business models with positive impacts. By scaling these ideas, they help reduce inequalities and improve access to essential services. Entrepreneurship, therefore, not only transforms economies but also empowers positive social change for communities.
8. How does entrepreneurship encourage innovation?
Entrepreneurship encourages innovation by giving individuals and teams the freedom to experiment with new ideas, products, and processes. The risk-taking culture typical of startups allows for creative problem solving and the rapid adoption of technology. These innovations can lead to more efficient ways of working, better products for consumers, or even entire new industries. As a result, entrepreneurship is often the driving force behind many of today’s most significant technological and business advancements.
