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. Does Management Depend upon Entrepreneurship?
In the truest sense, management and entrepreneurship are related to each other. They are intertwined in the administrative level. Without entrepreneurship management will not find its base and without management, entrepreneurship cannot function effectively. Management talks about the organizational studies that helps the entrepreneurs to work effectively knowing each step. Management however is not dependent on entrepreneurship, rather they both are interdependent on one another.
2. Who is a Finance Partner?
Finance business partners are the accountants who work alongside with different business departments by providing financial information and tools that analysis and insight the executives, challenges their thinking, and helps them make more accurate decisions and thus driving business strategy into the business. A finance partner is one who helps in the finance structure of the business. The one who contributes his own wealth to fulfil the financial needs of the business.
3. Why is Entrepreneurship Perceived as a Change?
Entrepreneurship is the change which the society darns for a better livelihood. Entrepreneurship starts with focusing the efforts in the problem part of the society. Then they understand the problem to bring a solution to this societal problem. In this process they earn profit, and thereby creates a change in the society, hence for this entrepreneurship is visualized as change.
4. Are Entrepreneurs Good Managers?
This is indeed a wide notion that qualities of good entrepreneurs do not translate to management, but this is case is at times in contrast the entrepreneurs to understand the management qualities and they excel in the field.
5. How relevant is the Need for Entrepreneurship – Explanation, Scope and Need for nation-building?
The role of “Need for Entrepreneurship – Explanation, Scope and Need” is very often underestimated by many. Entrepreneurs play a very important role in developing a nation economically. They help in running the wheel of an economy. They generate employment, facilitate earning money in the form of salaries, profits, dividends, rent, etc. This creates a flow of money in the economy which keeps the economy running all the time. Apart from this many entrepreneurs are involved in social causes which are oriented towards welfare causes such as education, health care, NGOs, etc. All of these combined a long way in assisting in the process of nation-building.
6. Can people having good knowledge about the “Need for Entrepreneurship – Explanation, Scope and Need" make good managers?
On some level management and entrepreneurship are interrelated. They share commonalities on the administrative level. They cannot function independently of each other. Management finds its base in entrepreneurship and entrepreneurship cannot function properly without managerial skills. Management teaches entrepreneurs the organizational skills needed to run a business at each and every step. Managerial skills are not dependent on entrepreneurial skills, rather they are interdependent. Due to such an intertwined relationship that exists between managers and entrepreneurs we can say that an entrepreneur must be a good manager. But it is not a hard and fast rule. Some people having enough knowledge about Need for Entrepreneurship – Explanation, Scope and Need do not become good managers.
7. I have a business plan for a start-up, how can “Need for Entrepreneurship – Explanation, Scope and Need” help me?
Need for Entrepreneurship – Explanation, Scope and Need by Vedantu will introduce you to a very basic idea of what entrepreneurship is, its scope and why we need entrepreneurs. You will also learn about roles that you will be expected to play as an entrepreneur. You will have to adorn various hats to perform your duties as an entrepreneur such as good listener, financial partner, learner, dreamer, etc. You can go through other commerce-related articles on Vedantu’s website to the possible entrepreneur. Also, remember entrepreneurship is a skill that you will learn only after applying what you have learnt.
8. In what course can I study “Need for Entrepreneurship – Explanation, Scope and Need”?
The Need for Entrepreneurship is a topic of utmost importance in the CBSE Class 11 and Class 12 Commerce curriculum. Apart from this students pursuing a degree course in Bachelor of Commerce will come across this topic in one of the subjects at some point during their study. To equip students with relevant entrepreneurial skill sets curriculum of various other courses has come to include Need for Entrepreneurship as a separate subject altogether. Any student learning this topic must remember it is a very practical subject and thus requires more practical understanding than mugging up sentences and cramming up the data.
9. How do I access Need for Entrepreneurship – Explanation, Scope and Need for Class 11 and class 12 commerce syllabus?
You can access “Need for Entrepreneurship – Explanation, Scope and Need” very easily from Vedantu’s official website as well as from the mobile application. It is made variable to you in the form of an article. Therefore you need not download it separately in the form of a pdf. Since it is part of open source, you need to sign in to access the information. All the information on the desired topic is made available for free. You can read other topics related to entrepreneurship such as Entrepreneurship - Types of Entrepreneurship, Benefits of Entrepreneurship, Concepts and Characteristics of Entrepreneurship, and a lot more from Vedantu’s website.
