An Entrepreneur is someone who creates an entirely new business, he also bears all the risks and enjoys the maximum rewards. The entrepreneur is perceived as an innovator who finds new sources for ideas, he creates goods or services or other business and procedures.
In an economy, moreover, in a developing economy like our nation, these entrepreneurs are the kin-pin. Entrepreneurs are characterized as those who take risks of the startups and in turn, they are rewarded with the profits, with fame and with continued growth opportunities.
In the upcoming section, we will talk predominantly about enterprise definition in entrepreneurship and the importance of entrepreneurship.
Enterprise Definition in Entrepreneurship
Enterprise also known as ‘Profit Business’ or Company, is majorly associated with entrepreneurial ventures. The successful people who conduct entrepreneurial activities are called “Entrepreneurs”.
Legally, there are different forms of enterprises, which exists commonly –
1. Sole Proprietorship –
This company is managed and owned by sole owners, they run the organizations for their sole benefit. With unlimited liability, they run their business.
2. Partnership –
Two or more individuals run this business form, these entities share the ownership.
3. Corporation –
A profit entity, the owners of these businesses are shielded from liability, they enjoy limited liability in these business reforms.
4. Limited Liability Company (LLC) –
An LLC provides legal protection to the company and tax treatment of the partnership.
Importance of Entrepreneurship
Entrepreneurship is a dynamic process which creates increasing wealth and innovates things that values which will bear on the welfare of the entrepreneur. Entrepreneurs are highly action-oriented, motivated individuals who are ready to achieve their goals.
Thus, entrepreneurs state the progress and growth of the entire civilization and economy. Taking this in view, we can describe the significance or the importance of entrepreneurship as stated below.
1. Growth of Entrepreneurship -
Entrepreneurship is the advent of new ventures which are particularly the small ventures, they materialize the innovative ideas of the entrepreneurs and put them into action. The growth or establishment of small enterprises specifies the contribution of entrepreneurship in every facet of the economy of the world.
2. Creation of Job Opportunities -
The firms who initiate entrepreneurship, contribute a large share of new jobs to the locals. They also provide training to the interns for their experience; hence they not only create job opportunities but also helps the freshers to gain knowledge.
3. Innovation -
Entrepreneurship is the incubator of innovation. Innovation goes beyond discovery, and this implies and commercializes innovations. With research and development, entrepreneurship also contributes to innovation. Entrepreneurship initiates innovation that provides new ventures, new products, technology and markets with good quality goods and services.
4. Impact on Community Development -
In the community, entrepreneurship contributes abundant retail facilities, this also provides a higher level of homeownership, lesser slums, sanitization standards, and at the same time focus on education, recreation and other religious activities are encouraged. Thus, in short, we can say entrepreneurship leads to a stable and high quality of community life
5. Political and Economic Integration of Outsiders -
Entrepreneurship is the most beneficial way of integrating the cornered sections of the economy.
Minorities, migrants, and women are safely mingled into entrepreneurship which will help to develop a well-composed even society.
6. Enhances the Standard of Living -
The standard of living is a concept that is built on an increase in the amount of consumption with a variety of goods and services that is supplied in the living standard of the individual.
7. Promotes Research and Development -
Entrepreneurship is innovation and thus the innovative ideas of goods and services are tested by way of experimentation.
Thus, entrepreneurship provides funding for research and development with the universities and research institutions which promote the general development, research, and development in the economy at large.