Courses for Kids
Free study material
Offline Centres
Store Icon

What is Entrepreneurship?

Last updated date: 29th May 2024
Total views: 361.2k
Views today: 10.61k
hightlight icon
highlight icon
highlight icon
share icon
copy icon

Entrepreneurship in Economics

Entrepreneurship is that resource which the economists categorize as an integral to the production process, the other three resources being the land/natural resouces, labour and capital. 

An entrepreneur combines all these three to manufacture goods or provide services to the society. With this the entrepreneur typically creates a business plan, hires labour, acquires the resources and financing, and also provides leadership and management to the business.

Entrepreneurs commonly face many obstacles when they build their companies. Hence, with a lot of struggle they build their own company. An entrepreneur’s life is full of risk and challenges hence, entrepreneurship is quite an interesting process.  

What is Entrepreneurship?

[Image will be uploaded soon]

The act of creating the business, at the same time creating to develop the same is coined as entrepreneurship. As the basis of entrepreneurship definition, the same is quite limiting. The definition now has got varied with the passage of time. Today, the definition of entrepreneurship more distinctively fits with the base of ‘Social Change’ or ‘Creating an innovative product for the societal needs’. 

Entrepreneurship is such a career that will drive the individual to take its own dream into their hands and to the direction in which they want to. This is about building their life in their own means and terms. An Entrepreneur’s motive is to make the world a better place to live in, including themselves. 

Significance of Entrepreneurship

Entrepreneurship is equally necessary and a significant part of society. It helps in societal growth and change. 

The significance or the importance of Entrepreneurship is as follows:

  • Growth of Entrepreneurship

  • Creation of job opportunities

  • Innovation

  • Impact on community development

  • The consequence of business failure

Classification and Types of Entrepreneurs 

There are many distinct types of Entrepreneurs specified for different functions. The classification of entrepreneurs are as follows:

  • Business Entrepreneurs

  • Trading Entrepreneurs

  • Industrial Entrepreneurs

  • Corporate Entrepreneurs

  • Agricultural Entrepreneurs

  • Retail Entrepreneurs

  • Service Entrepreneurs

  • Social Entrepreneurs

Characteristics of Entrepreneurship

To identify an entrepreneur, the following are the characteristics that will help us to accurately do the same. The characteristics are as follows:   

  • Creativity

  • Passion

  • Motivation

  • Product or service knowledge

  • Ability to network

  • Self-confidence

  • Optimism

  • Vision

  • Goal mindset

  • Risk-taking

  • Persuasiveness

  • Decision-making

  • Tenacity

  • Money management

  • Adaptability

Importance of Entrepreneurship Development 

For decades the entrepreneurs worldwide have initiated nothing but ‘Change’ in society. Change for the prosper of livelihood, to solve societal problems, etc. The need for this process is abundant, following are a few which will enlighten us about the importance of Entrepreneurship Development.

1. Bringing Economic Growth and Prosperity to the Nation:

An Entrepreneur is responsible for bringing economic growth and prosperity to the country by generating employment opportunities, capital, and wealth creation, also by increasing the per capita income, increasing the GDP, improving the quality of life by raising the standard of living of the locals, growth of the infrastructural facilities, forward and backward linkages in the society, development of the backward regions. 

2. Bringing Social Stability by balancing the Regional Development: 

Entrepreneurs are crucial as they play a unique role in bringing about social stability and provide balance to the regional development through absorption of the workforce in the industries, removing poverty, improving the health and education facilities, creating fair competition in regard to skill, equal distribution of income, creating social infrastructures.

3. An innovator in Economic Growth: 

By infusing new ideas, combinations, and product techniques, the organizations and the new markets make full use of their technical knowledge. This also helps in balanced growth, systematic innovation, technological advancement, implementation of mechanical skills. Thus, an entrepreneur plays a very crucial role in encouraging entrepreneurship and economic development. 

FAQs on What is Entrepreneurship?

1. Who are Entrepreneurs?

Ans. An entrepreneur is someone who creates a new business, by bearing most of the risks and enjoying most of its rewards. Entrepreneurs who become successful in taking on the risks of a start-up are rewarded with profits, fame, and with continued growth opportunities.

Few successful Entrepreneurs are:

  • Henry Ford.

  • Charles Merrill.

  • Sam Walton.

  • Charles Schwab.

  • Walt Disney.

  • Bill Gates.

  • Steve Jobs.

  • The Bottom Line.

 These persons have set up their own business by facing a lot of obstacles, overcoming them, and finally being successful world-wide. It takes a lot of devotion and passion to be in this field of being an Entrepreneur.

2. What is an Agricultural Entrepreneur?

Ans. Agricultural entrepreneurs are the owner, and also the managers of agricultural businesses. They consider the development of new and non-farming business activities by the farmers as a form of their portfolio for entrepreneurship.

To be successful at the process of market-oriented farming, the farmer needs to be greater farm management. While he is also required to be shrewd in entrepreneurial skills. Being an entrepreneur is a way of life and a way of looking at a problem and then solving it. An entrepreneurial farmer makes their own farming decisions in a complex, competitive, and collaborative environment.

3. Who are Social Entrepreneurs? Name a Social Entrepreneur of India.

Ans. Social entrepreneurs are the ones who visions, creates fundamentals, and also initiates social changes by reforming the social systems and creating sustainable improvements in society.

Urvashi Sahni tops as the number one social entrepreneur of India.